How to Avoid Gold Scams in the UK: Red Flags & Safe Selling Tips
With gold prices at record highs in 2026, scams targeting sellers have surged. Learn to spot rogue dealers, know your legal rights, and use our gold calculator and verified dealer directory to sell safely.
Gold prices have reached unprecedented levels in 2026, making gold jewellery and coins more valuable than many owners realise. Unfortunately, this surge has also attracted a wave of unscrupulous operators looking to exploit sellers who are unfamiliar with the market. From doorstep buyers offering a fraction of fair value to sophisticated postal scams, gold selling fraud is on the rise across the UK.
This guide will help you recognise common scams, understand your legal protections, and take practical steps to sell gold safely. Whether you are selling inherited jewellery, broken chains, or investment gold, knowing the warning signs could save you hundreds or even thousands of pounds.
Key Rule: Know Your Gold's Value First
The single most effective way to avoid being scammed is to know what your gold is worth before you approach any dealer. Use our free calculator to get an instant estimate based on live prices.
Calculate Your Gold's ValueCommon Gold Selling Scams in the UK
Understanding how scammers operate is the first step to protecting yourself. Here are the most prevalent gold selling scams affecting UK consumers in 2026:
Dealers deliberately offer far less than your gold is worth
How it works:
They rely on sellers not knowing the current spot price or their gold's purity. Some quote per item rather than per gram, masking the true value.
How to protect yourself:
Calculate your gold's value beforehand using our calculator. Get at least 3 quotes. Expect 85-95% of spot for investment gold and 75-90% for scrap.
Using tampered scales to underweigh your gold
How it works:
Unscrupulous dealers use uncalibrated or deliberately tampered scales to show a lower weight than the true figure, reducing your payout.
How to protect yourself:
Weigh your gold at home on a digital scale (accurate to 0.1g) before visiting a dealer. Note the weight and compare it to the dealer's reading.
Claiming your gold is a lower carat than it actually is
How it works:
The dealer tests your gold out of sight or uses a questionable method, then tells you your 18ct is actually 14ct or even 9ct, significantly lowering the offer.
How to protect yourself:
Check hallmarks yourself before visiting. Insist on watching the acid test or XRF testing. If they refuse to test in front of you, leave immediately.
'Send us your gold and we'll post you a cheque'
How it works:
You post your gold, then the company claims it weighs less or is lower purity than stated. Some companies simply never pay or make the returns process extremely difficult.
How to protect yourself:
Only use postal services with strong Google reviews and clear terms. Photograph and weigh everything before posting. Use tracked, insured delivery. Check their cooling-off policy.
Forcing you into an immediate decision
How it works:
Phrases like 'this price is only valid today', 'gold prices are about to crash', or 'I can't hold this offer' are designed to stop you getting competing quotes.
How to protect yourself:
A legitimate dealer will never pressure you. Walk away from any dealer who insists you must sell immediately. Good offers can always wait 24 hours.
Springing unexpected charges after agreeing a price
How it works:
After quoting a seemingly fair price, the dealer deducts 'testing fees', 'processing charges', 'refining costs', or 'administration fees' from your final payout.
How to protect yourself:
Ask for an all-inclusive quote upfront. Confirm the exact amount you will receive before handing over your gold. Get it in writing.
Red Flags to Watch For
If you encounter any of these warning signs when dealing with a gold buyer, proceed with extreme caution or walk away entirely.
Cash-only payments
Illegal under the Scrap Metal Dealers Act 2013 for scrap gold in England and Wales
No hallmark testing in front of you
Legitimate dealers always test purity openly and transparently
Pressure to sell immediately
A reputable buyer will give you time to consider their offer
No public Google reviews
Established, honest dealers accumulate genuine reviews over time
No scrap metal dealer licence
Required by law in England and Wales since 2013
No physical premises
Legitimate dealers have a verifiable business address
Quotes well below spot price
Offers below 70% of spot value are almost always unfair
Reluctance to provide written quotes
Honest dealers have nothing to hide and will put offers in writing
No clear complaints procedure
Professional businesses have transparent dispute resolution processes
Unsolicited door-to-door gold buying
Doorstep gold buyers almost always offer far less than your gold is worth
Remember: A legitimate gold dealer has nothing to hide. If a dealer becomes defensive or aggressive when you ask reasonable questions about their pricing, testing methods, or licensing, that is itself a major red flag.
How to Protect Yourself When Selling Gold
- 1.Know your gold's weight
Weigh each item on a digital kitchen scale (accurate to 0.1g). Record the weight and take photos.
- 2.Check the hallmarks
Look for purity stamps (375 = 9ct, 585 = 14ct, 750 = 18ct, 916 = 22ct, 999 = 24ct). See our hallmarks guide.
- 3.Calculate the approximate value
Use our gold calculator to get a baseline figure based on live spot prices.
- 4.Research local dealers
Check Google reviews, verify their licence, and browse our dealer directory.
- 5.Get at least 3 quotes
Prices can vary by 10-20% between dealers. Never accept the first offer.
- 6.Watch the testing process
Insist on seeing the acid test or XRF analysis performed on your gold.
- 7.Confirm the total payout in writing
Ask for a written breakdown: weight, purity, price per gram, total, and any deductions.
- 8.Never hand over gold without payment
In-person sales should be paid immediately by bank transfer. Never leave gold with a promise of future payment.
UK Law: Your Rights When Selling Gold
UK legislation provides important protections for gold sellers. Understanding these laws helps you identify illegitimate operators and strengthens your position if something goes wrong.
This is the most important piece of legislation for anyone selling scrap gold in England and Wales. Key provisions include:
- 1.Licensing requirement
All scrap metal dealers must hold a licence from their local council. You can check licence status with your local authority.
- 2.Cashless payments only
It is illegal for a scrap metal dealer to pay in cash. All payments must be made by bank transfer, cheque, or other non-cash method.
- 3.ID verification
Dealers must verify your identity before purchasing. This is a legal requirement, not an optional extra.
- 4.Record keeping
Dealers must keep records of all transactions, including your details and a description of the metal purchased.
While primarily focused on consumer purchases, this Act also protects you when dealing with businesses:
- -Services must be performed with reasonable care and skill
- -Information provided (e.g., testing results) must be accurate
- -Pricing must be transparent and free from hidden charges
If you believe you have been the victim of a gold scam, you should:
- 1.Contact your local Trading Standards
Via the Citizens Advice consumer helpline on 0808 223 1133
- 2.Report to Action Fraud
Call 0300 123 2040 or visit actionfraud.police.uk
- 3.Leave an honest Google review
Help other sellers avoid the same experience
- 4.Check your local council's licensing register
If the dealer is unlicensed, report them to the council directly
Scotland & Northern Ireland
The Scrap Metal Dealers Act 2013 applies to England and Wales only. Scotland has separate regulations under the Civic Government (Scotland) Act 1982, and Northern Ireland operates under the Waste and Contaminated Land (Northern Ireland) Order 1997. The principles are similar, but check your local regulations for specific requirements.
How to Verify a Gold Dealer
Before selling your gold to any dealer, run through this verification checklist. The more boxes ticked, the more likely you are dealing with a reputable buyer.
| Verification Check | How to Check | Importance |
|---|---|---|
| Google Reviews | Search the business on Google Maps. Look for 4+ stars with 50+ genuine reviews | Essential |
| Scrap Metal Licence | Ask the dealer or check with your local council's licensing department | Essential |
| Physical Premises | Visit the address or verify it exists on Google Street View | Essential |
| LBMA Membership | Check the London Bullion Market Association member directory at lbma.org.uk | Ideal |
| BNTA Membership | British Numismatic Trade Association membership for coin dealers at bnta.net | Ideal |
| Companies House Registration | Verify the company at companieshouse.gov.uk. Check age and director details | Recommended |
| Transparent Pricing | Dealer should clearly explain how they calculate their offer based on spot price | Essential |
| Website with Contact Details | Professional website with phone number, address, and clear terms of service | Recommended |
Using the London Gold Exchange Dealer Directory
We have done much of the verification work for you. Our dealer directory lists over 242 verified gold dealers across the UK, each checked against key trust criteria.
Every dealer in our directory has been sourced from Google Places data and has a verified business listing with genuine customer reviews.
All listed dealers have a confirmed physical business address. No anonymous postal-only services or P.O. boxes.
Our dealer database is validated monthly via automated checks and manual reviews. Closed or problematic dealers are removed.
How to Use the Directory
- 1.Visit our dealer directory and search by your city or postcode
- 2.Browse dealer profiles with ratings, reviews, and contact details
- 3.Contact 3 or more dealers to compare quotes
- 4.Use our calculator to check each offer is fair relative to spot price
What Fair Pricing Looks Like
Understanding the typical range of dealer offers helps you spot when something is wrong. Here is a rough guide to what you should expect:
| Gold Type | Fair Offer Range | Below Average | Likely a Scam |
|---|---|---|---|
| Investment bars & coins | 95-99% of spot | 85-94% | Below 85% |
| Scrap jewellery (hallmarked) | 80-92% of spot | 70-79% | Below 70% |
| Broken jewellery / mixed lot | 75-88% of spot | 65-74% | Below 65% |
| Dental gold | 70-85% of spot | 60-69% | Below 60% |
These are general guidelines. The exact offer depends on quantity, purity, and the specific dealer. Always compare against live spot prices.
Frequently Asked Questions
Is cash for gold safe in the UK?
Cash for gold can be safe if you use a reputable, licensed dealer. However, under the Scrap Metal Dealers Act 2013, it is illegal for scrap metal dealers in England and Wales to pay in cash. Any dealer offering cash-only payment for scrap gold is breaking the law. Always insist on payment by bank transfer or cheque, and only deal with businesses that have public Google reviews, a physical premises, and a valid scrap metal dealer licence.
How do I know if a gold dealer is legitimate?
Check for a physical business premises, a valid scrap metal dealer licence, positive Google reviews (ideally 4+ stars), transparent pricing based on live spot prices, and willingness to test your gold's purity in front of you. LBMA membership and BNTA membership (for coin dealers) are additional signs of credibility. Use our dealer directory to find pre-verified buyers.
What are the most common gold selling scams?
The most common scams include lowball offers well below spot price, rigged or inaccurate scales, bait-and-switch purity testing (claiming your gold is lower carat), postal scams where items are undervalued once received, pressure tactics to force immediate sales, and hidden fees deducted from payouts. Always know your gold's weight and purity before approaching any dealer.
Can I get my gold back if I've been scammed?
Contact your local Trading Standards immediately and report the incident to Action Fraud on 0300 123 2040. If you used a postal gold service, check their cooling-off policy - many legitimate services allow you to reject their offer and request your gold back within a set period. Keep all receipts, correspondence, and photographic evidence.
What is the Scrap Metal Dealers Act 2013?
The Scrap Metal Dealers Act 2013 regulates the buying and selling of scrap metal (including gold) in England and Wales. Key provisions: dealers must hold a council-issued licence, all payments must be cashless, sellers must have their identity verified, and dealers must keep records of all transactions. This legislation was introduced to combat metal theft and provides important protections for sellers.
Sell Gold Safely With Confidence
Calculate your gold's value, then find a verified dealer near you
Related Guides
Sources and References
Scrap Metal Dealers Act 2013. Source:legislation.gov.uk
Action Fraud - National Fraud & Cyber Crime Reporting Centre. Source:actionfraud.police.uk
London Bullion Market Association. Source:lbma.org.uk
Citizens Advice - Selling scrap metal. Source:citizensadvice.org.uk
Last updated: February 2026. Legislation and dealer information subject to change.
Founder & Market Researcher
Taro has been actively investing in precious metals and financial markets for over 15 years. Frustrated by the lack of transparent, accurate gold pricing information in the UK, he built London Gold Exchange as a data-driven resource for fellow investors. The site combines real-time market data, verified dealer information from 242+ UK businesses, and insights drawn from years of hands-on experience in the gold market.
- ✓15+ years investing in precious metals & equities
- ✓Built verified database of 242+ UK gold dealers
- ✓Daily market data analysis and price tracking
Disclaimer: This guide provides general information about avoiding gold scams and does not constitute legal advice. Laws and regulations may change. If you have been the victim of fraud, contact your local Trading Standards office and Action Fraud. London Gold Exchange makes every effort to verify dealers in our directory but cannot guarantee the conduct of any third party. Always do your own due diligence before selling gold.