Latest news on the campaign led by Jon White, founder of Gold-Traders (UK) Ltd
Jon White, founder of Wiltshire-based Gold Traders, is working with supportive MPs to meet Jonathan Reynolds, the Secretary of State for Business, Innovation, Science and Trade, as part of his campaign for greater consumer protection for people selling gold or other precious metals. He is being supported in this by two MPs, Damian Hinds and Sarah Gibson.
Minister of State Chris McDonald recently answered a written Parliamentary Question, tabled by East Hampshire MP Damian Hinds, one of two MPs backing Jon White, who has spent nearly two decades frustrated by the lack of consumer protection in the precious metals buying market.
Jon said: “I’m hoping to get a meeting with the Secretary of State to call for a tightening up of the law to stop unfair practices by gold and precious metal dealers who, in my view, prey upon the ignorance of consumers.
“Someone may want to sell jewellery they have inherited, for example, be in a state of grief and have no idea if they are getting a fair deal or not. Our sector is unregulated, so companies can offer what they like per gram of gold, silver or platinum, and how will a consumer know if they are getting a fair deal?
“Some dealers who trade online, offer free postage or turn up randomly in car parks can pay as little as 30 per cent of the true value of someone’s precious metal, and I believe this is simply wrong.”
Jon has been highlighting the fact there is currently no legal requirement for gold buyers to display the price they pay per gram, no mandatory accreditation scheme, and no consistent standards governing how customers are treated when selling their gold, silver, or platinum. Yet scrap metal dealers (who buy copper and ferrous scrap) must hold a licence under the Scrap Metal Dealers Act 2013, while precious metals buyers face no equivalent requirement at all.
East Hampshire MP Damian Hinds tabled a written Parliamentary Question (UIN 17979), asking what assessment the Government has made of introducing a requirement for both over-the-counter and online gold buyers to display clearly the price paid per gram. Responding on behalf of the Department, Minister of State Chris McDonald said:
“The Digital Markets, Competition and Consumers Act 2024 prohibits unfair commercial practices, including misleading actions that are likely to impact the average consumer’s transactional decision. The DMCCA also requires traders to display prices inclusive of all taxes and unavoidable charges before payment is made. Prices must be accurate and not misleading. Failure to do this may be taken as an unfair trading practice and constitute an offence. The department has not made any assessment on this matter, but we continue to closely monitor consumer protection issues.”
Jon is now seeking a meeting with the Secretary of State about this issue, so that there are specific regulations around buying precious metals from consumers.
“While there is a general law around unfair dealing, there is nothing specific to this sector, where millions of pounds change hands on a daily basis in the UK. Consumers often just ‘trust’ that the price they are given is a fair valuation of their property. They don’t know the right questions to ask, they don’t know the ethics of the buyer, and if they do feel like they have been shortchanged, there’s no redress. It really is ‘seller beware’.”
Jon wants regulation to insist on:
- Mandatory price transparency before any transaction – any buyer must publicly disclose the rate they pay, expressed as a price per gram for the purity of the metal in question, before a transaction begins.
- Regulation of postal buying services – any business operating a postal precious metals buying service must provide a specific written indication of the rate the seller can realistically expect to be paid, before they are asked to send items. Displaying a live spot price without clearly stating the actual percentage or price per gram paid to the seller does not constitute adequate disclosure. Any such service must also guarantee the free return of all items if an offer is declined.
- Regulation of travelling buying events – any business operating a temporary or travelling precious metals buying event must register with the relevant local authority in advance, display rates publicly at the venue, and provide written confirmation of any offer before a transaction is completed.
- A cash threshold ban – cash payments above a defined minimum threshold to be prohibited, bringing the sector into line with broader anti-money laundering practice.
- Identity verification obligations for all sellers – buyers to be required to verify the identity of sellers before completing a transaction, creating a basic audit trail and a deterrent to the handling of stolen property.
Gold-Traders (UK) Ltd was founded in 2008 and has built its reputation on transparent pricing and accredited customer service. The business operates branches in Royal Wootton Bassett, Wiltshire, and Bodmin, Cornwall, alongside a nationwide postal service. It was the first precious metals company in the UK to achieve Trading Standards accreditation through the Buy With Confidence scheme, and is an Official Partner of The Royal Mint, the only such partner in the South West. To find out more, visit https://www.gold-traders.co.uk/
Picture takeny by Judith Parkyn
Article from Scott Media
