Cashing in on the latest gold rush

TRADING in gold for cash has becoming a thriving industry since the credit crunch with people looking to get much-needed money for unwanted jewellery.

Richard Hooton looks at the boom in Oldham, the best ways of cashing in and the unusual items that pawnbrokers are offered.

THE ABUNDANCE of “Cash for Gold” adverts and shops springing up won’t have failed to catch people’s eye.

The credit crisis and record gold prices have seen them prosper as the fall in lending from traditional avenues such as banks makes it difficult to obtain money.

People have cashed in on gold coins and jewellery to raise funds instead.

There have been words of caution, however, as tempting offers like “send us your unwanted jewellery and we’ll send you a cheque straight back” have not always proved as profitable for punters as they’d hoped.

Studies have found that some traders are paying just a fraction of the amount that gold would be worth if it was taken to a jeweller or pawnbroker.

Trading Standards have commented that some quotes are shockingly low and people should shop around as traders can just offer what they want.

Some firms have defended low prices by saying they also provide speed, convenience and a door-to-door service.

Mays Pawnbrokers is the North-West’s largest independent pawnbrokers and jewellers with four Manchester outlets, including one at Manchester Street, Oldham.

Established in 1825, Mays offers a cash for gold service.

The company says it is committed to responsible lending and will assess the affordability of each and every loan regardless of the value of the item.

Lending against items ranging from £100 up to £25,000, Mays has noticed a very real shift in customer profile since the credit crunch.

Asset rich, cash-strapped individuals are now tapping into pawnbroking as a credit check-free route to instant short-term loans.

Mays is receiving a growing number of high-value pledges, including a rare solitaire diamond ring, worth £30,000, and a tennis bracelet with diamonds that weigh in at over 5cts.

Commercial director Nick Withington said: “Since the credit crunch, people have become much savvier about realising their assets, and putting their rarely worn high-value jewellery, which may just be collecting dust in a jewellery box, to good use: converting it to cash through pawning them, which still allows them to collect their item at a later date.”

Mays’ top tips for converting unwanted gold to cash are:

::Root through old jewellery boxes. You’re likely to come across everything from earrings that have lost their pair, to bracelets with broken clasps — items you’ll never regret melting down!

::Do research on the company you choose to cash in your gold with. A business with a longstanding history and trained valuers is vital, so you can trust you’re receiving a fair exchange.

::Always ask the price per gram that you’ll be offered. The transaction should be entirely transparent.

::Be creative — it’s not just gold jewellery that can be converted to cash. Mays receives all kinds of weird and wonderful unwanted items, like gold golf balls or paperweights.

::If your items are sentimental, but you need to raise cash fast, another option to consider is pledging your gold piece to a reputable pawnbrokers.

One unusual item that hit the headlines recently was former Oldham MP and wartime Prime Minister Sir Winston Churchill’s gold mounted false teeth.

The partial set was sold for £15,200 at auction in Norfolk after being expected to fetch a maximum £5,000.

They were specially constructed to preserve Churchill’s natural lisp and were so important he carried two with him at all times.

Among the weird and wonderful items Mays have received to be melted down are gold toothpicks — which would have gone nicely with Mr Churchill’s gnashers!

Assistant general manager Jason Darrington said: ‘’We receive a number of gold dental crowns a month.

“Each one isn’t worth an awful lot by itself in real terms, but with gold prices still at an all-time high, savvy customers are collecting all their unwanted gold items that are gathering dust at the back of drawers and bringing them in to be valued as a mixed bag.

“Single earrings, gold coins and antique coin holders are items we’ve been presented with recently — all of which can add up to a considerable sum.”