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  | Don't Get Scammed When You Sell Your Gold in TorontoDon’t Get Scammed When You Sell Your Gold in TorontoBy Allen Malloy,on February 10th,2010  Print This Post Check out the latest news on what happens when you try and sell your gold to various sellers in Canada. It appears that a local Toronto jewellery store is the best option. With gold prices hitting $1,750 per ounce,more people are turning in their old gold jewelry for cash. Good Morning America has advice on getting the most money for your old gold.  9 comments to Don’t Get Scammed When You Sell Your Gold in TorontoLeave a Reply |   Do Not Get Scammed!    | ||||
| Daniel Jewellers - 1006 Queen Street East,Toronto ON M4M 1K1 - Phone:(416) 469-4462 38 queries. 0.407 seconds. | ||||||
There are too many people with commercials saying they will buy my gold. I am not rich but I have a fair amount of jewellery to sell. I enjoy your posts. What would you suggest is the best way to go about selling my gold?
Hi there,I understand your confusion. I get a real kick out of some on the gold buying commercials I see. Some like the Cash Man claim they will lend you up to $100,000.00 with no questions asked so you can spend it on the casino or stock market,REALLY? Beside that there is the fact that I do not get to see much jewelry in the $100,000.00 range so he must talking about properties making him a mortage broker / pawnbroker as well as a gemologist. Personally I would deal with a bank instead of paying pawnbroker rates on property,but to each his own i guess.
Other commercials are asking people to mail in the jewellery,this is completely crazy. They tell people to mail the jewellery to them in a insured Canada Post Expresspost mailing packet (provided to you by them of coarse). I ship jewellery from my ebay stores and websites to my customers all over the world and I know that Expresspost does not allow jewelry in the Prepaid Expresspost packages,documents only. Who then will insure the package if it goes missing,Expresspost or the guys asking you to ship your jewellery to them. Expresspost will not insure jewellery so will the people asking you to ship your jewellery in to them insure it? Assuming the best for them and saying that they will honor their claim if it goes missing,what will the insure it at? I could claim there was a big diamond ring in there woth $50.000.00 retail,even if there was only a small gold chain worth $100.00. Even if I were to produce and original receipt for the $50.000.00 ring,you know they will not cover that cost,they have no way of knowing what I actually put in the package. These commercials are only hype meant to separate you from your hard earned cash in my opinion. Personally,if I were to sell jewellery or diamonds or gold or watches or anything else at all,I would definitely not let my jewellery,etc. out of my sight until I had the cash in my hands. Mailing it in is as good as saying goodby to any bartering potential and also possable saying good bye to it for ever if it goes missing.
Wow Allen! Thanks for this information about the risks of mailing in jewellery for appraisal. Seems to be much safer to take it to a local jewellery store in Toronto rather than mail it off to an unknown entity. Gold hit an all-time high the other day…do you think it will still go up?
Hi Patrick,gold did hit an all time high in the US reciently,but we here in Canada / Toronto have had an all time high already of about $1300.00 Canadian about 8 to 9 months ago. As the US dollar loses strength,and the Canadian dollar strengthens,gold may appear as if it is getting stronger but more often than not it is that as gold rises you will see the US dollar drop,and they both moving together,equal out to the same value for gold in Canadian dollars. We are now bouncing around $1200.00 to $1280.00 Canadian in the past months. Some “experts”predict it will jump very high,some “experts”predict it will drop very low having reached it’s highest now already. As for myself,I just sold a very large quantity of gold reciently because i believe it will drop like the last time it lingered around $1300.00 Canadian. Time will tell. If you need money now,sell now,it is at a great price lately. If you do not need money now and can patiently wait out out for 8 to 15 months,I am sure it will come back up again,and go even higher.
I like your posts,thank you for your time in writing these. What is the best way to get the most money for my jewellery.
Hi Lindsey,I tell all my customers here in Toronto that best way to sell jewellery is in person. In fact the only way to be sure you are getting the best price when you sell anything is to research first and pound the pavement yourself. If you don’t have time to research the best resale price,pay someone you trust to do it for you,then at least you can examine their procedure before you decide to sell. It could save you hundreds on higher priced items,even after you pay the selling fee. An educated consumer is our best customer. If you do not have time for that then leave it with a jeweler who can sell it for you on a commission basis. If you do not panic and sell it to just anyone right away without researching your possibilities you will always get more money. We would charge about 20% for a commission sale. On commission you are guaranteed a high sell value because the commission is determined by the final sale price. On a consignment basis we have sold many things here from our store;diamond wedding rings,platinum engagement rings,sapphire &ruby rings,watches and even silver coins. When you deal with consignment,trust your gut instinct,if you do feel pressured do not continue there,just leave and go somewhere where it feels right.
I continue to be astounded at the gold price these days. I was recently seeing how it has jumped up one more time. What will the ceiling for it be do you figure?
Allen,I approached a jeweler in our home town 3hrs. north of Toronto and what they are offering is less than 1/3 of what mail in dealers are offering. I’ve done a telephone search to walk in dealers and they vary in cash deal prices by 50% or more. Your caveat about mail in dealers is astounding . Is there no one out there that is legitimate even face to face dealers who will gouge you for whatever they can get?
Hi Raymond,it is hard to answer the question not knowing what it is we are basing the term “gouge”upon. The cost of the piece from my perspective is based upon what the value of the items are –eg,the actual cost of the material –gold –10k or 14k etc,the acyual cost of the gemstones –diamonds etc.. If you brought me a gold band that has a particular weight,I could weigh the item and determine the gold value. If i determine there is $100.00 worth of gold in the band I would offer a buy price determined by the gold price,definitely not more than the gold price. I have had customers say that they think it is worth much more than that because they paid much more than that. One thing to keep in mind is that when you go into a shopping mall (very high rent) and see many many smiling faces behind the counter of the jewellery store,you pay for that smile,you pay the rent,you pay the electricity and heating or A/C,it is all in the cost of the item. If they sell the ring for $450.00 it is because they have bills to pay and that is what they think it is worth,it is not the actual cost or they would close up shop quickly. A customer may say to me that they think it is worth more because they paid more than that but I answer sorry but you may have paid too much,I will then show them similar items in my inventory clearly priced for them to see. The appraisal value or percieved value is not at all the cost price. The labor cost in every item is never redeemable after it leaves the premises where it is made. I have no labor cost with my items (Unless a customer wants me to make a custom designed ring) because it is estate jewellery,previously owned. It is like buying a used car,someone already paid the original labor cost,you just pay the resale cost. Another example of labor cost is in diamond chips. A 1pt or 2pt diamond is about $1 or $2 but if you want me to replace a diamond that size it will cost you $10 or $20 since you require my expertise that I schooled for. Try to sell that ring and you will not get $10 or $20 per stone you will get $1 or $2 per stone. A diamond cluster ring may have 9 –2pt diamonds,the retail cost might be $90 to $180 just for the diamonds + the gold value,the resale cost brings the diamonds to their actual value. I would not pay $90 for 9 diamond chips if I could go out and buy the diamonds brand new for only $9. The main question would be –How did you attain the percieved value you attach to the item –if you are not a trained jeweller –to determine the “gouge’price you base your question on? Hope this helps. I will be happy to view the item(S) if you require,just let me know. All the bes Allen