Don't get burned when selling gold

Don't get burned when selling gold
You've heard and seen the ads saying it's easy to turn your old gold into hard cash. Sounds good, but Attorney General Rob McKenna, says be careful.

"We are hearing complaints from people who have mailed their gold in or sold it to some other operator who operates very quickly. And the most frequent consumer complaint regarding those kinds of services involves low payout."

Attorney General McKenna says if you want to sell any gold or gold jewelry, do your homework.

"Begin by comparing what you'd receive from a pawn shop or a reputable jeweler before going to one of the mail in services," McKenna says.

There are reputable services that buy gold through the mail. McKenna says you want a company that's been around for a while and one that offers free insured shipping that you can track online.

Even so, you still may get less for that gold than you would from a jewelry store or pawn shop. The attorney general cites a study done by Consumer Reports.

"Mail in companies offered only 11 to 29 percent of market value for 18-karat jewelry, while jewelers and pawn shops paid up to 70 percent for the very same pieces."

For more information

'Consumer Reports: Cashing in gold? Heres the catch

Ask the AG: Should I sell gold for cash?