Consumer Watch: What should you do with your old gold?

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by Kyle Brown

WHAS11.com

Posted on December 9, 2009 at 7:09 PM

If you have some old gold lying around that is no longer part of your wardrobe, this week’s Consumer Watch is for you.

Gold is trading at over $1100, but what does that mean for you and are those businesses that deal in gold legit?

WHAS11’s Andy Treinen has the answers this week’s Consumer Watch.

You’ve all seen the commercials on television from national and local businesses wanting to buy your old, scrap gold for cash.

But the Better Business Bureau says “Buyer Beware” and know what you’re getting into if you choose to sell your old gold.

The BBB gives the national company “Cash 4 Gold” a C rating with 294 complaints in three years. The Company’s C.E.O. told Good Morning America that “Cash 4 Gold” offers convenience, but it always isn’t at the best price.

“They’re going to give you that low-ball price and then when you say no, no, no I don’t want that sent the jewelry back, they’ll offer another price, and then they’ll even do it a third time,” says Reanna Smith-Hamblin with the BBB.

Locally, pawn shops, jewelers, and other similar businesses are opening around the city.

One business is Gold Exchange, and they say they offer a more personal touch.

“A lot of times you can tell gold by the way it feels on the polishing stone because gold is soft,” says Jeff Klusmeier with Gold Exchange.

Unlike “Cash 4 Gold”, who sends a check, Klusmeier pays in cash.

“I didn’t have to exchange it. He just gave me a price and I thought it was a good price so I took it,” one customer told us.

No matter where you sell your gold, dealers tell us you should not expect to get the melt rate.

“We actually base the penny weight price on the London fixed so I’m able to give them real-time price,” says Klusmeier.

From gold teeth, to class rings to old broken chains, if the carrot and weight is same so is the value.
 

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