Hard-pressed families tempted to sell their old gold jewellery to cover essential bills risk being ripped off, it is claimed.
Tens of thousands have been tempted by high-profile advertising campaigns offering money to those who want to sell old gold and silver jewellery.
The firm CashMyGold, which is spending large sums on commercials on daytime TV, is using the slogan ‘Best prices paid for your gold’ to tempt customers.
But a shopping exercise found the company offered only a fraction of the true value of the gold and silver it was sent by a client.
Macintyres, an Edinburgh jewellery firm, sent batches of gold and silver for which it paid £226.07 to CashMyGold to see how much it would pay.
CashMyGold sent a cheque for just £90.37 – a reduction of £135.70 on the true value.
When Gaynor Macintyre, the Scottish firm’s co-director, complained CashMyGold sent a second cheque for £88.63.
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In the money: How CashMyGold works
Miss Macintyre said: ‘A lot of the people who are selling their jewellery at the moment are doing so as a direct result of the credit crunch.
‘To be ripping them off is, to my mind, just terrible, horrific.’
A CashMyGold spokesman rejected the allegations and said they offered a ‘fair scrap gold price’.
She said the offer rose after they realised the items had a resale value.
The price of gold topped $1,000 an ounce this week.
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