Councils warn against 'unscrupulous' gold-buying firms

Cash-strapped Britons were warned today to be on their guard against unscrupulous companies offering to buy jewellery.

Some gold-buying firms are ripping off unsuspecting consumers by offering rock-bottom prices, according to council trading standards officers.

As Christmas approaches at the end of a year hit by recession, a number of cash-for-gold postal services have sprung up to take advantage of the current high market value of gold.

But trading standards officers in Sutton, south London, found prices being quoted for a bracelet varied by almost 90%.

They were offered prices ranging from £17 to £32 from six different outlets for the 9ct gold piece of jewellery.

Cllr Paul Bettison, chairman of LACORS, the regulatory body for councils, said: "Unfortunately there are some people finding themselves in very difficult financial circumstances this year, who could well be lured into giving up their jewellery to help fund Christmas.

"Whilst a number of gold trading companies are quoting legitimate prices, trading standards officers have uncovered some companies happy to exploit consumers.

"People should not take the first offer they get but shop around as prices can vary significantly.

"I'd hate to think how much the £3 million Anglo-Saxon treasure unearthed in Staffordshire earlier this year would fetch if it were to be sent off to be valued.

"Others are using postal gold services as they are seen as a convenient way of gaining some extra money quickly.

"However, consumers only have a short time to either accept or decline an offer, so councils are recommending that people gain proof of postage if they want their gold back.

"Entering into discussions on doorsteps with uninvited traders is also not recommended.

"It is a well known distraction method for burglars."

In other cases, Hertfordshire County Council trading standards teams sent a bracelet which had previously been valued between £40 and £60 to a gold company advertising on national television and received a first offer of just £5.31.

After the offer was refused, another offer of £30.62 was received.

The London Borough of Barnet meanwhile has received more than 130 complaints since July from people unhappy with the procedures of "cash for gold" postal companies.

If anyone is concerned they should contact their council trading standards department or Consumer Direct on 08454 04 05 06.