The price of gold is holding steady around $1,600 an ounce. While that's not a record, it is high and has many people looking to sell.
Earlier this year CBS did an undercover, investigative report on traveling gold and silver buyers. It turns out, one of the companies scamming people, THR and Associates passed through Sioux Falls.
With today's high price for gold, Riddle's Jewelry in Sioux Falls finds itself buying more of the precious metal everyday. From broken gold chains to class rings and Black Hills Gold jewelry, customers are looking to change their gold into cash.
"The price of gold being over $1,600 per ounce right now, it's a good time to get rid of your metal if it's sitting there in a drawer," Riddle's Jewelry general manager David Stensrud said.
Just last September, THR and Associates brought its traveling team to Sioux Falls. It's the same company the CBS investigative report found to be cheating its customers on the quality and value of their gold.
Stensrud says there's no minimum offer buyers are required to pay for gold. And since traveling companies’ breeze into town for a few days and then leave, Stensrud says they have nothing to lose by low-balling you. He even put them to the test.
"They're not paying you what its worth. Guaranteed that. Because I've sent my employees with metal to them to see what they're going to pay and they'll pay less than half of what we'll pay for the metal," Stensrud said.
Stensrud says Riddle's has been in Sioux Falls for more than 30 years and its good reputation comes from not only the sale of jewelry, but also from treating customers right when they're selling it back.
One of the best ways to get the most money for your metal is to shop around. Get a few offers so you know the value of your metal before you sell.
"The main thing is to go where you trust somebody. If it’s some of the pawn shops because you like them, great. But don't trust these traveling shows. There's a reason why they're here for two to three days and they're gone," Stensrud said.
Just to give you an idea of what some items could be worth, the pile of jewelry on the left is 10 karat gold. Riddle's paid $135 for those items. The pile on the right is made up of 14 karat gold and was worth $370. The company takes into account the amount of gold in each piece when determining how much it is worth.
"Be fair. Be honest. Be reputable," Stensrud said.
By law, a person can only sell $600 in gold a year without paying taxes on it so Stensrud says it should be a red flag if someone wants to pay you cash for your gold without having you fill out paperwork first.