In 2025, Sarah walked into a local gold buyer in Sydney to sell her old gold necklace. She trusted the shop because it was nearby and promised “top cash.” Later, she found out she got 40% less than the real market value. Sadly, her story is common.
In fact, over 25% of Sydney gold sellers lost money to shady buyers in 2025, according to Gold Traders Association data.

This guide will help you spot common mistakes people make when choosing a gold buyer—so you can avoid them and get the best price for your gold. Let’s look at the five key mistakes to dodge.

Mistake 1: Skipping Buyer Reputation Checks

Why Reviews Matter

Many sellers trust the first shop they see or the ad with the biggest promise. That’s risky.

• 70% of scam complaints are linked to unverified buyers (Sydney Fair Trading, 2025).

• John ignored bad Google reviews. The buyer later vanished with his rings.

• Gold expert Mark Lee says, “Always check at least 50 reviews before selling.”

Bad reviews often show patterns like low payouts, rude staff, or fake weighing.

What You Should Do

• Search reviews on Google, Trustpilot, and ProductReview.com.au

• Visit the shop in person and talk to the staff

• Ask if they can share past client references

A trusted cash for gold in Sydney service will never hide reviews or rush you.

Mistake 2: Overlooking Licenses and Credentials

Spot the Red Flags

Not all gold buyers follow the law.

• Only licensed buyers must follow NSW rules and tax laws

• In 2024, three Sydney gold firms were shut down in a police raid

• Sellers who dealt with them got nothing back

Jeweller Anna Wong explains, “A license proves the buyer is real and accountable.”

How to Check a Buyer

• Search the NSW Fair Trading website for registration

• Ask for their ABN and insurance proof

• Walk away if the buyer is pushy or avoids questions

If a buyer refuses to show documents, that’s a clear warning sign.

Mistake 3: Chasing the Highest Quote Blindly

The Bait Trap

Big numbers can fool anyone.

• 40% of “top offers” advertised end up paying less after fees (Consumer Affairs, 2025)

• Mike was quoted $500 but received only $320 after hidden cuts

• Dealer Tom Harris warns, “Quotes mean nothing without weight and purity.”

Some buyers use high quotes just to get you inside the shop.

Smart Ways to Compare

• Get at least three quotes on the same day

• Weigh your gold at home before going

• Ask about all fees upfront

Never choose a buyer based only on ads or phone quotes.

Mistake 4: Ignoring Pricing Transparency

Hidden Costs Explained

Some buyers use confusing terms to underpay sellers.

• Around 15% is often lost in hidden “processing fees” (Gold Price Index, Jan 2026)

• Lisa’s gold coins were underpriced using old melt values

• Analyst Sarah Kim says, “Always demand live price charts.”

If a buyer avoids showing calculations, be careful.

How to Protect Yourself

• Check the live gold price on Kitco before selling

• Ask for a clear per-gram price breakdown

• Say no to vague terms like “market rate”

Honest buyers explain every step clearly.

Mistake 5: Rushing the Sale Without Inspection

Why Speed Can Cost You

Selling in a hurry often leads to losses.

• Rushed sales cause 20% lower payouts on average (Sydney Gold Dealers report, 2025)

• Paul sold family gold fast; the buyer scratched it to fake damage

• Refiner Greg Tan advises, “Test purity yourself when possible.”

Pressure tactics are a big red flag.

Take Control of the Sale

• Bring a loupe or hallmark-checking app

• Record or film the weighing process

• Take a day to think before big sales

A real professional never forces quick decisions.

Conclusion

Choosing the right gold buyer matters more than most people think.
Let’s recap the top mistakes to avoid:

• Not checking reputation

• Ignoring licenses

• Trusting high quotes blindly

• Accepting unclear pricing

• Rushing without proper inspection

Key Takeaways

• Research gold buyers often—prices change weekly

• In January 2026, Sydney gold prices averaged $65+ per gram

• Sell only to trusted buyers like ABC Gold Buyers

Final tip: Bookmark this guide before selling and share your experience in the comments. Your story could help others avoid costly mistakes.