Throughout the centuries, gold has always been the most coveted precious metal, whether by states who built up a gold reserve to assert their economic power, or by individuals who built up a “bas de laine” to protect their assets. With the recent sharp rise in gold prices, it's not uncommon to see French people rushing to the bureaux de Change to resell their jewelry. 

The gold jewelry market is not immune to the risks of scams and swindles of all kinds.  

We'd like to take this opportunity to remind you of the most common frauds that can be encountered, and the simple solutions you can take to protect yourself against them, bearing in mind that the services of a gold expert are always to be preferred. 

The most common gold sales scams 

While gold prices have been posting record after record for months now, they are attracting growing interest from investors, but also whetting the appetite of swindlers of all kinds.  

The latter, whether they are gold buyers or sellers themselves, use a number of well-honed subterfuges and techniques to deceive their victims, who are often novice private investors. 

Common gold-buying scams 

It is not uncommon for private individuals to want to resell gold coins or old jewellery from a collection or inheritance. In such cases, dishonest buyers will be tempted to undervalue the purity or weight of the gold being sold. To do this, they may use rigged scales to minimise the real weight, or they may claim that the gold is of lower purity (14k instead of 18k). 

A fraudulent buyer may pass himself off as an expert in his field and take advantage of the seller's ignorance to drive the price down because of impurities in the gold metal, or the application of false smelting or refining charges... 

The method of payment can also give rise to various scams. Whether it's a cheque dishonoured after the transaction or a transfer that never arrives, unscrupulous buyers can acquire physical gold at a lower cost. 

Another very traditional method is to send the jewellery to a gold-buying site. This can be a simple front for disappearing with the jewellery without a trace. Rest assured, on our website we are committed to providing you with maximum security, and to this end we offer you kits (the famous Gold kit). The same technique can be used with gold buyers on classified ad sites. 

Common scams used by gold sellers 

Gold sellers may target individuals with little knowledge of gold. To do this, it is quite common to be offered jewellery or bars that are not solid gold, but just gold-plated. Another variation is the sale of fake gold coins or ingots. The deception may involve the material itself or the documents, certificates, history of the jewellery, etc.

Some sellers may try to inflate prices by charging refining or import costs, management fees, storage fees or insurance costs.

You should also be wary of sellers who offer physical gold stored in another country or who offer to deliver the metal without any specific guarantees. 

What can you do to protect yourself against scams? 

The basic solution: check certain points 

It's important to pay attention to a number of points before buying or selling gold jewellery. 

- Check the purity of the gold (expressed in carats: 24k, 18k, 14k, 9k) by looking at the official hallmark. This will take the form of a seahorse (24k), an eagle's head (18k), a scallop shell (14k) or a shamrock (9k). 

- Test the quality of the gold with a magnet. The magnet should not react, as gold is not magnetic. 

- Check the weight of the jewellery with a scale. Gold is a heavy, dense metal, unlike gold-plated jewellery. 

- Check the provenance of the jewellery and the presence of a detailed invoice. 

- Check the price of gold to get an idea of the price of the jewellery. 

- Observe the quality of the gold soldering. A piece of solid gold will have very good soldering. 

- Find out about the quality of the precious stones inlaid in the jewellery. 

- Consult official websites for publications on the good conduct of gold resale professionals.  

The common-sense solution: call on a recognised gold resale professional 

An appraisal by an independent expert recognised in his field is an essential step, a guarantee of confidence in knowing the real value of the precious metal and the assurance of a secure transaction.  

In this respect, Godot & Fils is a leading family firm in the precious metals and numismatics business in France. With almost a century of existence and experience, it is recognised for its expertise and competitiveness in the gold and silver market. 

Over the years, the company has expanded its presence through a nationwide network of branches, most notably in Paris at 26 rue Vivienne, guaranteeing a local service to its customers. 

As a pioneer in its field, Godot & Fils has also innovated by offering online services, enabling its customers to buy and sell precious metals simply and securely. 

Godot & Fils attaches great importance to the transparency and quality of its service and prices:  

- Our dealers use a spectrometer: this expensive tool gives an instant and accurate indication of the purity of the gold. The spectrometer provides an additional guarantee of the authenticity of the gold. Our dealers always use this tool in front of the customer. 

- Our dealers also check the weight of the jewellery using scales. To guarantee unrivalled accuracy, the scales are checked twice a year by a government body on Godot & Fils' initiative. Weighing always takes place in front of the customer. 

- We guarantee impeccable transparency on our purchase prices: you can find our prices for 18-carat and 24-carat gold on our website on this page.  

- For greater security and in accordance with the law, payments are always made by bank transfer. 

Conclusion 

Buying or selling gold jewellery can be a very worthwhile financial operation, provided you take a few precautions beforehand. Obviously, it's best to work with a recognised gold market specialist to avoid the multitude of scams that exist.