Q:

What recourse is available when a cash-for-gold company does not pay?

A:

Quick Answer

Consumers who do not receive money in exchange for jewelry from a cash-for-gold company can call the company's customer service number and request the return of jewelry items, notes Today. Filing a complaint with the Better Business Bureau or the state attorney general is highly recommended.

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Full Answer

Cash-for-gold companies who promise fast cash in exchange for unwanted jewelry rip off some consumers, reports CNN Money. Valuable jewelry typically sells at 50 to 60 percent of its current value, but cash-for-gold companies usually pay 18 to 20 percent for gold jewelry. Many consumers don't know the real value of the jewelry they own, which makes them vulnerable to unscrupulous gold buyers. Consumers are able to determine the value of gold jewelry on their own by calculating its weight and purity, notes Kiplinger. All that is needed is a kitchen scale that measures 28 grams per ounce, or ask a local jeweller for assistance.

It's smart to take gold jewelry to several local gold buyers, have it appraised and ask for quotes before selling, as suggested by Today. Consumers must avoid selling gold to buyers who refuse to provide a quote in advance, advises CNN Money. Gold buyers base quotes on the percentage of pure gold found in jewelry pieces, and most 14-karat jewelry is never 100 percent gold.

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