Warning issued to gold owners

21 January 2010

People looking to cash in on the "gold rush" are having their jewels consistently undervalued by TV gold buyers, consumer guide Which? has claimed.

The independent service conducted a test which found companies advertising on TV to buy gold are offering "shockingly bad value" to sellers.

According to Which?, CashMyGold offered £38.57 to purchase three items sent for valuation as part of a new Money Investigation.

Which? had previously paid £729 for the brand new items.

The difference between the TV firms and independent jewellers was highlighted after CashMyGold offered just £10 for a 9ct gold bangle bought for £215, while an independent firm offered £54 for the same item.

The cash for gold market has become increasingly prevalent during the economic downturn as some firms look to cash in on the UK's financial struggles.

Programmes such as equity release schemes could provide a more regulated route for homeowners to boost their income.

Cash from the value of a property can be used to provide some financial stability for those who own their own home.

Which? chief executive, Peter Vicary-Smith, said: "The poor value for money that these TV gold buyers are providing is simply shocking. The cash for gold market is unregulated, and this investigation has raised some serious concerns about the fair treatment of consumers."