How to Spot a Legit Cash for Gold Website (Before You Ship Your Jewellery)

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With gold prices regularly in the headlines, many Canadians are exploring "cash for gold" websites as a quick way to turn old jewellery into money. While there are reputable businesses operating online, the industry has also attracted scammers and fly-by-night operators. Once you send off your gold, it's out of your hands, so you need to recognize the red flags before you ship.

Here's how to verify a legitimate cash for gold website and protect yourself from common traps.

1. Verify their Canadian Business Credentials

Start with basic due diligence:

• Is the business registered in Canada? Search their legal name in the provincial or federal business registry.
• Do they list a physical address and phone number in Canada? A vague "contact us" form isn't enough. Look for a full civic address and a working local number. Ideally, they operate a storefront you can visit to see for yourself.
• Are they accredited by the Better Business Bureau (BBB) in Canada? A BBB profile with reviews and complaint resolution history helps confirm legitimacy.
• Check for precious metal licensing. In provinces like Ontario, gold buyers need a second-hand dealer licence. If you're not sure, you can call your local bylaw office (311 within Brampton).

2. Review Transparency on Rates and Terms

Legit websites are upfront about:

• How they evaluate your gold (what they consider when evaluating karat, weight, and current market value).
• The percentage of the gold spot price they pay. Good operators might offer 70%-90% of market value. Be wary of any hidden deductions.
• Their process for shipping, inspecting, quoting, and sending payment.
• How they handle disputes or return requests if you decline their offer.

If rates are "TBD" or only revealed after you've shipped your items, that's a warning sign. Look for posted pricing tables or calculators tied to daily spot rates.

3. Read Real Customer Reviews

Don't rely on glowing on-site testimonials. Instead:

• Look for Google Reviews, BBB ratings, and independent forums.
• Prioritize reviews from Canadians. Many sketchy websites operate internationally but advertise in Canada.
• Search terms like "scam," "reviews," or "complaints" with the business name to see what comes up.

Be wary if there's no online footprint or if the only reviews look fake or repetitive.

4. Ask About Insurance and Return Policies

Established, reputable online gold buyers will often:

• Provide a prepaid shipping label (often through Canada Post or FedEx).
• Insure your package up to a clearly stated dollar amount.
• Require you to fill out a form detailing the items and their estimated value.
• Offer a no-obligation quote with the ability to decline and request your items returned.

If shipping is uninsured or returns come with fees, it's probably best to look elsewhere.

5. Evaluate the Website's Trust Signals

Aside from evaluating an online buyer's gold buying and business practices, you also have to consider how they handle your data and their website security. Also, the buyer's website may contain warning signs that you should look elsewhere. Here's what to look for, technically:

• SSL encryption (a padlock symbol and "https://" in the URL).
• A professional, informative layout; not a bare-bones site with typos, grammar mistakes or vague information.
• Clear privacy policies and terms of service that outline your rights and responsibilities.

Final Tip: Use Your Local Jeweller First

Many Canadians overlook their local jewellery stores or pawn shops, which often match or beat online offers, especially for pieces with craftsmanship or gemstone value. Before shipping your valuables into the unknown, get a second opinion from someone face-to-face.

The gold-buying industry isn't all bad, but online anonymity gives scammers an easy way in. Stick to websites with clear Canadian credentials, transparent pricing, strong reviews, and insured, risk-free shipping. If something feels off, trust your gut and hold onto your jewellery until you've done your homework.