More Jewelers Fall Victim To Gold-Selling Scams

With gold's high prices more and more people have been selling off gold. In some ways that has been good for jewelers but it has also meant that gold-related frauds are on the rise. JCK Online reports on the findings of the Jewelers' Security Alliance which has received over 28 reports of gold-related frauds committed against retail jewelers in 2009. That number doesn't sound like a lot but last year saw just six scams.

There have been two major types of fraud, a bait and switch in which the seller shows the jeweler a gold item and then switches it with a lookalike fake, and a scenario in which the jeweler buys a piece that tests positive as gold but is instead a heavily plated item. Jewelers are advised to be aware of the proliferation of fake items and to test it as much as possible. Both buyers and sellers should be aware of the possibility that even if a piece is stamped as gold that does not mean it really is.

Gold sellers are also warned to be cautious. Check the daily prices and be aware that while any jeweler or gold dealer will also take a share of the profits it pays to shop around because the percentage may be different and different stores may offer varying prices for pieces. Depending on the value of the piece it may also be advisable to have it evaluated by an independent appraiser before shopping your jewelry around that way you know the range that it could fetch.