A Trading Standards investigation in Wiltshire has revealed significant differences in the prices offered by businesses buying gold from members of the public, with one mobile buyer offering little more than half the verified market value for an identical quantity of gold.
The investigation was carried out following a request from Jon White, owner of Royal Wootton Bassett-based Gold-Traders (UK) Ltd. Jon has long had concerns that consumers are not protected from sharp practice in a sector which is unregulated.
A verified quantity of gold comprising 12.5g of 9-carat gold and 24.2g of 18-carat gold, with a combined true value of more than £2,200, was presented to a range of gold buyers by trading standards to compare the offers made.
The results highlighted substantial variations depending on the type of business approached. A mobile gold buyer operating from a campervan in a supermarket car park offered £1,122.57. A bricks and mortar gold buying business offered £1,191.00, while a High Street jeweller offered £1,500.42. The highest offer from those tested came from a High Street pawnbroker at £1,880.00. All businesses were operating in Wiltshire at the time of the investigation.
By comparison, Gold-Traders (UK) Ltd, which publicly displays both the live market spot price and the rate it pays customers, calculated that it would have offered £2,057.82 for the same quantity of gold based on its published prices. This company was the first in the UK to apply, be inspected and to be awarded ‘trusted trader status’ back in 2022 and it’s still the only one in Wiltshire.
“This exercise shows just how much offers can vary between different types of gold buyer, even for an identical quantity of gold,” said Tom Hutchinson, Principal Trading Standards Officer at Wiltshire Council.
“Our consistent advice to anyone considering selling gold is to obtain more than one valuation, ask exactly what price per gram is being offered, and never feel under pressure to accept the first offer made.”
The findings have renewed calls from Jon White for greater transparency within the UK’s gold buying sector. Currently there is no licensing requirement for businesses purchasing gold from the public, nor any legal obligation to disclose the price they intend to pay before a transaction takes place.
Gold-Traders is campaigning for the introduction of mandatory price transparency, requiring all gold buyers to display the price they pay per gram for each purity of precious metal before any transaction begins. Jon has written to his local MP, Sarah Gibson, urging the Government to introduce consumer protection measures.
“Someone could take exactly the same gold to four different buyers on the same day and walk away with more than £750 extra or less, depending purely on which business they choose,” said Jon.
“What makes that even more concerning is that there is currently no legal requirement for any buyer to tell customers in advance what they are going to pay. We are calling for a simple change that requires every buyer to publish their price per gram before a transaction starts. Consumers should be able to compare prices easily and make an informed decision without needing a Trading Standards investigation to discover whether they are receiving a fair offer.”
Founded in 2008, Gold-Traders (UK) Ltd has been serving customers for 18 years from its headquarters in Royal Wootton Bassett, Wiltshire, with a second branch in Bodmin, Cornwall. The company was the first precious metals dealer in the UK to achieve Trading Standards accreditation through the national Buy With Confidence scheme and is the only Official Partner of The Royal Mint in the South West of England. Across its three businesses — Gold-Traders, RWB Auctions and The Britannia Coin Company — the group employs 29 people.
For more information visit https://www.gold-traders.co.uk/