There have been quite a few companies appearing in recent years who have been advertising heavily and encouraging people to raise money by sending them their old gold jewelry for an instant cash payment.

The theory seems good. You have no hassle. Simply put your gold jewelry in an envelope and post it off. In return you get a cheque for the value of the gold. What could be easier?

Yes, it is easy but in many cases people are not getting very good prices for their gold. Occasionally the offer they get is extremely low and the seller has wanted their gold returned only to find that it has already been melted down and they have no choice over whether to accept the offer or not.

The BBC OneShow programme looked at this business a while back and the prices they were offered on the gold jewelry they sent off for sale was often much lower than most high street jewellers offered them. I remember reading a few years ago about an American firm that seemed to be using a similar business model. They were offering a great deal but delivering very poor prices. Melting down the items as soon as they arrived meant the customer had no option but to accept the payment offered. It sounded slightly dodgy at the time even though it may not have been illegal. It seems this is now happening over here too.

The OFT (Office Of Fair Trading) has announced that they are taking enforcement action against a number of companies that offer to buy gold from consumers by post.

Three companies, some of whom you may be familiar with,  (CashMyGold, Cash4Gold and Postal Gold) have undertaken to make changes to their business practices following the OFT’s investigation. Two other companies (CashYourGoldNow and Money4Gold) have ceased trading after the OFT consulted with them about improvements to their business practices.

Selling gold seems like a good idea to raise some cash. As Chancellor Of The Exchequer, Gordon Brown sold all of the gold reserves a few years ago, when gold was about a quarter of the price it is now. Maybe he used one of these postal companies to sell it.. Selling gold jewelry you no longer want does make sense if you want to raise some cash but for goodness sake take care to make sure you get a good price. Most jewellers on the high street will buy gold or direct you where to sell your gold. Most will give you a fair price on the spot. It is arguably even easier than posting off your gold.

So, the moral must surely be that you should at the very least get a valuation from a local jeweler before posting off your gold and if you are offered less demand your jewelry back again. Make sure you have the option to have it returned to you when you send it off and be sure they have to get your written permission BEFORE they melt it down and commit you to the sale.

Supporting local jewelers is no bad thing. We should all try to support local stores where we can. The experience of the BBC’s reporter was that you are likely to get better prices from a local jeweler for your gold than from these postal gold sale companies anyway.

Money Magic: Seven Simple Steps to True Financial Freedom (Quick Reads)

We all need to be very cautious and careful when we get emails these days. HM Revenue & Customs (HMRC) is warning taxpayers to be vigilant following a surge of fake ‘phishing’ emails sent out by fraudsters, following the 31 January Self Assessment tax return filing deadline.

These email usually suggest that the recipient is entitled to a tax rebate and helpfully provides a click-through link to what is actually a replica of the HMRC website. The recipient will then be asked to enter their credit card or bank details. The fraudsters will then take money from this credit card or bank account using the details provided. Victims risk having their bank accounts emptied and their personal details sold on to other organised criminal gangs.

In the last three months, HMRC has shut down 99 websites that were responsible for sending out the fake tax rebate emails.

You can read more here.. H.M Revenue & Customs

Money Magic: Seven Simple Steps to True Financial Freedom (Quick Reads)

The price of Brent Crude oil reached over $100 today for the first time since the peak prices reached in the summer of 2008. There are concerns about what is happening in Egypt and the risk that it might affect oil tankers travelling through the Suez Canal.

The likelyhood of problems with the Suez canal seem unlikely but there has been a steady rise in the price of oil over recent months and that is a serious concern. The steady price rise of oil has been blamed on rising demand as economies around the world begin to recover from the economic downturn and that should concern everyone.

If we have these price rises while consumers are subdued and ecomies are stuttering along just imagine what could happen to the price of oil if, and when, world demand starts to seriously pick itself up. The price of oil could double and that would bring problems to everyone as prices and inflation rapidly rise.

There is not much we as individuals can do to avoid these increased costs we may face in the future and the best thing we can do is to reduce our current spending and debts so our financial situation is as strong as we can make it so we can cope with whatever hppens in the world.

Money Magic: Seven Simple Steps to True Financial Freedom (Quick Reads)