Pocono News Section

I-Team: Getting Your Gold's Worth

I-Team: Getting Your Gold's Worth - Thursday, May 7, 2009 at 4:46PM EST

You've seen the ads asking you to send in your old gold for extra cash. But are you really getting what its worth? To see if they pay top dollar, we sold gold to four buyers. A local jeweler, and pawn shop and two national companies that advertise on TV.
Cash4Gold struck gold when it bought airtime for this ad during the Superbowl. But is their service a golden opportunity for you.

Max Bartikowsky of Bartikowsky jewelers in Wilkes-Barre says "people who sell it or mail it in from TV commercial. They're taking a big chance." But will our undercover camera reveal better offers from local gold buyers?

We took scrap gold and had it appraised by graduate gemologist Eric Coburn at American Gold Buying in Dallas. Coburn gave an estimate for how much he'd pay for each piece. Then we sent a pendant and bracelet to industry leader Cash4Gold. We packaged a pair of earrings and a ring and mailed it to GetGoldCash.

The I-team then went undercover to sell other pieces to a Luzerne county jeweler. It paid 50 dollars for the gold we had appraised for 61 bucks. Then off to a Scranton pawn shop. We walked out with thirty dollars for the gold we had valued at 50.

Cash4Gold sent a check for $11.70 but when we called to complain, it boosted the offer to $20. That's closer to the $26.50 we had it appraised for.

GetGoldCash paid $13.38 but asking for another review increased the offer to $25. Also, six dollars shy of its value.

But Coburn says you shouldn't expect each buyer to offer what he did. “Each company has different profit margins built in."

So Rose Wateski of Rainbow Jewelers in Kingston suggests shopping your gold around for the best price. “I would go to someone who's been around for a long time. Who's willing to help me with what I need."

So who gave the best return on our gold? The jeweler. Mail-in companies were close behind. Our investigation reveals you shouldn't take the first offer or bank on some pawn shops to give you a golden deal.

Cash4Gold has a D- rating from the Better Business Bureau. I has 350 complaints. If you use them, put the shipping package they provide inside another envelope. There have been reports of people stealing these recognizable packages from the mail. And finally, if you get a check, you need to cash it within ten days.

Here are some gold-selling tips from .

• If you are dealing with a refiner , ask if the company is a member of the , which encourages ethical business practices within the industry. • If you are dealing with a jeweler , ask if they are members of or the . Both of these organizations advocate for ethical standards and professionalism in the retail jewelry industry. • In almost every part of the country , pawnbrokers and other businesses buying gold or other valuables are required to file reports with the local district attorney or the state attorney general's office, providing a copy of the seller's photo identification. If you aren't asked for identification, take your gold and leave. • There are reputable scrap gold dealers who buy gold via the Internet, but it's hard to verify their ethics. An indication that they are trustworthy is their willingness to send you a packing envelope that is registered and requires a signature from them when you return it filled with your gold. The shipment should also be insured. The dealer should then quote you a price, which you can accept or reject. If you reject that offer, the dealer should be willing to return your gold in similar packaging. • Don't accept a deal that requires you to turn over your gold and wait for whatever check the buyer chooses to send. At the very least, get an estimate and a guaranteed price range. • Shop around . You may find great differences in the offers you get for your gold. • Don't get your hopes up too high . While what you're selling may look like a big pile of gold, by the time it's melted down and the impurities are removed, it may not amount to much.