Tuesday, July 6, 2010

Be careful where you sell your gold

National Jeweler Magazine reports that the Newark, N.J. authorities have cited 49 New Jersey gold-and jewelry-buying businesses for numerous violations of state laws governing gold buybacks.  A statewide sweep found businesses were using inaccurate scales which resulted in consumers receiving less than they should have in exchange for their gold or jewelry.

The state office's Precious Metals Task Force began the unannounced inspections in June after receiving a complaint from a consumer. The task force dropped in on jewelry stores as well as transient buyers of gold who normally operate out of hotels and move around frequently.

Among the confiscated items was a scale that had a spring mounted underneath its weighing platform that pushed back as items were weighed, producing an inaccurate reading. State officials displayed the scale along with other sweep paraphernalia at a press conference held Thursday in Avenel, N.J.