Gold dealers urge caution when selling jewellery
The surging price of gold, currently topping $1,300 per ounce, has some people cashing in valuables, a move gold dealers advise should be done with caution.
CBC News found that a person selling jewellery based on its gold content will find a wide range of prices being offered.
While some companies offer cash for gold through a mail-in system, others will buy gold pieces in person.
"We travel around buying gold, silver and platinum," Jordan Tank, a representative of a business called The Gold Recyclers, told CBC News, explaining the company sets up a kiosk-style of operation, usually in shopping malls.
"We're right here," Tank added. "You don't have to mail anything. You come down and see us, we give you a price right away. You don't have to wait for it in the mail [and] you don't have to ship anything away and hope they get it."
Tank's company pays up to half of the market price for gold, depending on the purity of the gold.
Tank said the company has been in operation for 20 years and is able to provide valuations — and cheques — very quickly, often in a matter of minutes.
He said people are under no obligation to sell once they've been given a price and are free to shop their gold around.
One Regina shop owner told CBC News he aims to be competitive and offers between 80 and 90 per cent of an item's gold value.
"We've got two employees [and] we try to keep everything simple," Lyle Fornwald, from KC Coins, explained. "We keep our overhead down as much as we can and we try to get the best price when we're selling. So we try to give our customers the best price too."
Other options, such as pawn shops, operate on a different business model and generally pay only a fraction of an item's value.