Golden Advice

19 May 2012

No one would deny that Northumberland is a place of pure beauty, with its stunning countryside, rugged coastlines and picturesque market towns, but something you probably won't find naturally in rural Northumberland is gold.

Lovers of the precious metal would have to travel to Scotland or North Wales to mine for gold, but even then, it's so scarce they are unlikely to find their fortune - or even find enough gold to cover their travelling costs.

However, while there may not be any gold hidden under Northumberland, who's to say that there isn't plenty tucked anyway in people's jewellery boxes.

A combination of increasing levels of unwanted or unused jewellery, the rising price of gold and soaring living costs has created a gold rush for the 21st Century. A new gap that opened up in the market was quickly filled by companies looking to buy gold through postal services.

Everyone will have seen the adverts - place any unwanted gold into an envelope, pop it into the post and companies will then offer a 'competitive' price for the items.

Sounds simple enough but after reports that pieces of jewellery had been melted down before owners had a chance to reject the quote, and claims that quotes weren't as 'competitive' as advertised, the Office of Fair Trading (OFT) stepped in.

Last week, following the OFT investigation, the 'cash for gold' industry was ordered to improve how it treats its customers and to be clearer on how gold is assessed and then valued - as a result three companies agreed to change how they worked, a further two ceased trading and one is now in voluntary liquidation.

While people may assume that selling unwanted gold is a good way to make a little extra money from items that are essentially gathering dust, many people who are struggling financially are using these services to sell pieces of gold, which potentially could be highly valuable, to help them get by. It's vital that such companies are not able to take advantage of vulnerable people who are desperate to make ends meet.

'Cash for gold' companies may work well for some people who have old jewellery that they no longer want and who want to cash in on the post Millennium gold rush, but as with anything always do some thorough research and shop around to ensure an acceptable quote before committing to sell.

Anyone who feels forced into selling their valuables because of financial troubles should always seek advice first as there are other options available to help manage debts. Northumberland residents concerned about financial matters should contact DAWN Advice through the county's dedicated advice line on 0844 4111 309.