Photo: Meredith Galante/Business Insider
“We Buy Gold” stores are a huge rip-off, according to a former employee. They only offer about 15 to 30 per cent the spot price of gold and take items that were stolen, the anonymous former employee said in a recent Q&A on Reddit’s Ask Me Anything section.
[Note: Reddit uses anonymous sources, which we can’t verify.]
The man talked about the most desperate customers he ever saw:
“Definitely the married couple selling the rings off their fingers. Also had a guy bring me a gold chain he had bought at the jewelry story in the same mall I worked in on the same day. Had the receipt and everything.”
How much of what they received was stolen property:
“I’d say somewhere around 8%. I know thats specific, but I really don’t feel comfortable with either 5 or 10%. Pretty much none of the money was ever recovered. The store never had those types of practices that I’m aware of. Everything was entered online to law enforcement as legally required and all records kept for the required amount of time. I know I never personally attempted to conceal anything.”
One of the most soul-numbing experiences he had:
“One family had had an old silver pitcher, a family heirloom, stolen by their son and sold to us for $300. My boss made me charge them $600 to buy it back. I’ve never since given such a heartfelt apology to anyone, and given the circumstances, they couldn’t have been nicer about it. I suppose what you say regarding the stolen items being somewhat of a justification for the profit margins, but I do believe its a little excessive. That’s just my opinion. To each his own.”
How you can avoid getting screwed over while selling gold:
“Really, your best bet is a pawn shop. They pay you more for the value of the jewelry rather than just the value of the scrap gold.”
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