Gold-buyers and sellers beware!

Reputable jewellers will likely applaud NSW Fair Trading’s stance against unscrupulous buyers who are duping unsuspecting consumers by undervaluing goods – giving the industry a bad name. Most jewellers would hope pressure from the government authorities will help weed out deceptive operators, whether they run kiosks, pawn shops or traditional stores.

As part of a “sting” operation, NSW Police, together with NSW Fair Trading investigators, recently visited six Sydney gold-buying businesses comprising three shopping centre kiosks, two pawnbrokers and one jeweller.

The same piece of gold jewellery was shown to each buyer but the price they offered fluctuated considerably from $50 to $98. The price at the three kiosks differed by as much as 48 per cent.

In a second operation, two jewellers in the Liverpool area were found to be operating without a valid second-hand dealers licence, while a third accepted an offer to purchase an item of gold jewellery over the internet, breaking the law.

As seller identification requirements under the Pawnbrokers and Second-hand Dealers Act 1996 cannot be met online, it is illegal to purchase second-hand gold jewellery via mail or the internet.

NSW Commissioner for Fair Trading, Rod Stowe, had this advice for consumers: “With many people heading into Christmas on a tight budget and some facing the prospect of hefty post-festive season credit card debts, selling unwanted jewellery can seem like a quick-fix solution to financial woes," he said. 

“But the best thing to do is to take the time to shop around and get at least three quotes before you settle on a buyer. That way, you are more likely to get a fair price for what you are selling.”   

NSW Fair Trading 

Jewellers condemned in cash for gold exposé