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Better Business Bureau finds gold price disparity

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Anyone selling gold jewelry to businesses that promise to pay "top dollar" should go the extra mile to price compare their offers, according to a secret shopper test conducted by the Spokane Better Business Bureau.

The BBB took a pocketful of gold jewelry to 12 area pandora charms outlet shops and compared how much each shop was willing to pay for the items.

An appraiser had priced the jewelry at about $593 if someone tried to buy the pandora uk sale equivalent in pure gold that week.

Seven of the 12 shops were chosen because they advertised they paid top dollar or highest prices for gold. The

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Anyone selling gold jewelry to businesses that promise to pay "top dollar" should go the extra mile to price compare their offers, according to a secret shopper test conducted by the Spokane Better Business Bureau.

The BBB took a pocketful of gold jewelry to 12 area shops and compared how much each shop was willing to pay for the items.

An appraiser had priced the jewelry pandora charms at about $593 if someone tried to buy the equivalent in pure gold that week.

Seven of the 12 shops were chosen because they advertised they paid top dollar or highest prices for gold. The other five in the survey did not make such a claim.

On Oct. 10, a BBB staff investigator visited the 12 shops. Based on pandora sale 2016 normal buyer discounts, the employee expected offers as low as $361 and as high as $455.

Instead the offers ranged from $187, from Pawn It For Cash, to $510 from American Coin Vault.

Highest offer provider American Coin is among the five that make no claim about paying the most.

"We don't say that because we actually don't want to encourage people to bring in scrap gold," said Jake Graham, of American Coin.

Dan Austin, owner of Austin's Fine Jewelry, said he found that range surprising. "It's much wider than I would have thought," he said.

His business was not included in the survey.

Austin said the "seller beware" approach is needed when visiting gold buyers.

"My perception of what gold buyers pay is that their job is not to be an advocate for the (seller). Their job is to get the most value they can," Austin said.

Most reputable gold shops typically discount the spot price of gold by 30 percent, Austin said. The spot price is the price of gold on commodities markets that day.

Using that formula, his business would have offered roughly $415 for the pandora jewelry 70% off clearance BBB jewelry, he said.

Four of the 12 buyers offered to pay nearly or exactly that amount: Coin Corner ($390), Goldbay ($410), Honest Gold Guy ($411) and Eastern Washington Coin ($415).

Five of the 12 buyers offered well below $415.

Chelsea Maguire, communications director for Spokane's BBB, said the price test was prompted by the office staff's personal impressions about the "top dollar" type of advertising.

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