Think Cash for Gold Stores are Scams? One Torontonian’s Experience

A stretch of inconspicuous stores line the sides of a street in a city neighbourhood. Apart from those living nearby, it’s safe to say that few people, if any, venture inside of these stores. If you live in one of Canada’s big cities (i.e. Toronto, Montreal, Vancouver), does the scenery mentioned above remind you of an area in your city or town? If so, there might be some stereotypes that come to mind. Convenience stores, laundromats, old video stores (yes, they still exist!) – these establishments often fit the bill.

But what about those weird and seemingly out-of-place gold buying stores? You might have seen one and scrutinized how trustworthy they were, or wondered if they’re even worth trusting at all. Yet, it’s often surprising to many people when they hear the truth about stores that offer cash for gold in Canada: they’re not only trustworthy, but also worth a visit. With that said, there are some buyers who you need to be wary of, but it would be an exaggeration to say that they are the norm.

How a “Field Trip” Changed One Person’s Perspective

Meet Robyn Urback, a contributor for Blog T.O., a Toronto-based blog that discusses local culture, shopping, events, restaurants, and more. Way back in February 2011, her first person account of what it was like to visit cash for gold stores in Toronto went up on the site. Aptly titled, “The Strange World of Toronto’s Cash for Gold Stores”, she detailed what it was like to visit these establishments, and how it changed her perception of them. The purpose of her visits were not necessarily to sell an item, but rather, to gain a glimpse of what it’s like to deal with a gold buyer.

The first store she visited led to a peculiar experience. She walked into a mysterious setting. There was a homeless man, an entrance that requires one to be buzzed in, ornate decorations – a strange juxtaposition indeed. However, the allure turned into frustration when Robyn received an offer for her 10k white gold ring. The buyer offered her an initial price of $20, a meagre and laughable fee. She uttered a bold “no” saying that she couldn’t sell it for such a dismal rate. He offered her $25, then doubled it to $50, reaching into his jacket to pull out a bill. Remaining vigilant, Robyn demanded a higher price. The dealer insisted that $50 was “a lot a of money”, and that the offer was fair for the jewelry offered. Robyn decided to leave, and the buyer went on to offer her $75, then a price between $80 and $110.

Light at the End of the Tunnel

Unfortunately, her first visit was no doubt discouraging. These kinds of experiences are often the ones that surface when people talk about selling their jewelry, prompting others to raise their defenses against cash for gold stores. But remember, not every gold buyer is out there to rip you off, and there are quacks and hacks in every industry. Robyn didn’t let this first experience deter her from seeking a better deal.

She pressed on and stumbled into another cash for gold store where the offers got off to a better start – $90 being the first price. She went on to describe the experience as “more enjoyable” than her first visit, although not getting what she really wanted. Clearly, not all gold stores offer an experience that’s unfriendly. That’s true even for the ones that can only offer you a payment below your expectations. Like any other industry, the gold sector has its buyers who are good with people, and others who are bad with people. So it’s a matter of trial and error and persistence when looking for the right one.

Going back to the story of Robyn, we can say that she finally saw some light at the end of her journey. She made one last stop at a well-known buyer in the city. The bidding for her gold ring started pretty low as well, with the starting offers priced at $50 – $80. He then jumped to $100, asking Robyn if she’d take that much if given to her. Then he increased it to $120. Finally, he ended their appointment with an offer of $130 (which she didn’t sell for since she was only “testing the waters”). Robyn admitted leaving with mixed emotions, feeling somewhat dismayed yet enlightened about the world of gold buying.

What Can We Glean From Robyn’s Experiences?

There are quite a few lessons that we can take away from Robyn’s experiences with gold buyers. They can certainly help you if you’re still on the fence about selling your jewelry to cash for gold stores.

Lessons to Learn:

  • Keep a Realistic View of Pricing – First and foremost, you need to understand that your estimates on potential earnings may not align with the actual cost of the item. Devaluations can occur, so don’t be completely surprised if a buyer offers you less than what you expect. With that said, a trustworthy buyer will generally provide a payment that’s fair.
  • Visit More Than One BuyerAs you can see with Robyn’s story, she didn’t meet a suitable buyer right off the bat. You too may have a similar experience. So don’t think that the first store you stumble upon will be the last. That leads us to our next point.
  • Not All Buyers Will Treat You the Same – Not all gold buyers will act the same way. Some definitely lack people skills, and it will show in their behaviour and speech. But there are many others who are professional, considerate and most of all, respectful.

What You See May Surprise You

Drawing from Robyn’s experience, it’s clear to see that not all gold buyers are the same. There are gold scams out there and you do have to be on the lookout, but they are avoidable. One of the most important things you can do is conduct some of your own research. You can do this by verifying the authenticity of a store through a search on the Better Business Bureau (BBB). The reports given on this site can give you an accurate picture of whether the company can be trusted or not. Apart from this research, however, it doesn’t hurt to take your own little excursion to find the right stores that offer cash for gold in Canada. You will find the ideal buyer, even if they don’t hit your radar immediately.

Looking for a gold buyer who will offer you a fair and reasonable payment for gold jewelry? Get in touch with us to set up an appointment!