Yes the scammers are at it again. Actually it really isn’t a scam it’s more of a scandal and maybe you’ve even seen these payment for gold ads on TV. It seems as if these companies sprung up all at once. In fact you may have even seen the cash for gold commercial during the Super Bowl a few weeks ago. If you didn’t take a look below.
So you may be wondering if these are legitimate companies then why are they considered a scandal? Well that is what we are going to discuss today.
How Does The Payment For Gold Scandal Work?
Recently these online companies have been taking advantage of people. For instance recently I read about a man who sent in around $200 to $300 worth of gold. Sounds good so far right, but instead of getting a check back for a few hundred dollars he got back a check for 15 cents.
WHAT!
Obviously, he got ripped off but could have this been prevented? The sad truth is yes. This could have been prevented in so many different ways. Later in this post I will explain how you can prevent this from happening to you.
What Does This Got To Do With Getting Out Of Debt?
First off, it has a lot to do with getting out of debt. With the current recession going on at the time of this writing and the struggle for people to pay their bills most people are looking for about any way they can to get some extra cash.
Second, they see the commercials on TV and the Internet telling them it’s so easy and you’ll get a check for your gold, but here becomes the real problem. Once you send them your gold how much are they going to send you back?
Are they going to send you back a check for the current market value? Are they going to have someone assess the value? These simple question raise a lot of red flags with me and I hope they do with you as well.
How To Prevent A Payment For Gold Scam?
So maybe you still want to sell off some of your gold jewelry but don’t know how to go about doing it. Well it’s actually very simple to do. Follow my instructions and whatever you do don’t send it to one of those online payment for gold places.
- Get an appraisal of your gold. This is really the first step once you’ve figured out what you want to get rid of. This may cost you a little bit of money but will be well worth it. With an appraisal you now have bargaining power selling your jewelry. If the appraiser says it’s worth $300 and someone says they are only willing to give you $150 you can use the appraisal as a way to bargain with the buyer.
- Sell to local buyers in person. By selling to local buyers in person it will do a few things for you. First, the person buying your gold has a physical location that you can go to. If you send it to some online company and end up getting screwed what will you do then? Second, you will be able to talk to them to work out a deal unlike the online businesses were you get whatever they send you. This means no negotiations and not enough zeros in your check.
Have You Ever Been Caught In This Scam?
Have you been burned by this scandal? Feel free to share your story and leave a comment. However, if you have managed to have a good experience with these online payment for gold companies feel free to share those stories as well.
To staying scam free,
Chris
{ 6 comments… read them below or add one }
My family and i were approached by a company some 8months ago now by a company called milton hayward. We purchased a large number of shares on there advice and are now sad to report that we may have been subjected to a large boiler room scam!! We dont know where to turn or what to do. has anyone got any advice? or has anyone been in touch with this company?
Kind regards
Laura Gregory
Laura,
What kind of company was it? I’ve checked with FINRA and they are not listed a broker or a broker dealer with them. If they sold you any kind of securities such as stocks bonds or mutual funds they may be doing something illigeal. You can report a compalaint to the SEC. Here is the link.
http://www.sec.gov/complaint.shtml
Let me know if you need more help.
Chris
Luara,
I have also been caught up in the Milton Hayward scam.
I have contacted various agencies and official organisations to try and get some feedback and it is not looking very good at the moment I am afraid.
E-mail me if you would like some more information or if we can share info.
Cheers, Luke
Thanks for the reply chris. Milton hayward was an investment company selling shares in a company called forgold. i have found two other people who have been ivolevd in this scam but wanting to find more, any ideas where to post my story?
Laura,
I have not heard much about this scam however if you would like to post your story I would be glad to help you out. If this is something a lot of people could be involved with I would be glad to help. If you would like to submit your story just go to the “Write for SF” section at the top right hand corner of my blog and just follow the instructions their.
Maybe after posting an article on this scam a few people will step forward and shed some light on the subject.
Chris
thanks chris, ive just posted it. got my fingers crossed for responses!