Guide · Canada

How to tell if a gold buyer is legit

Six checks, from the strongest to the simplest. None of them proves a shop will treat you fairly, but together they are what a careful seller does.

1. 1

   Look at the scale

   A scale used to buy gold must be approved and inspected by Measurement Canada, and made for weighing precious metals. Look for the inspection sticker. Watch your item being weighed, in grams.

   • Measurement Canada: buying gold and other precious metals
2. 2

   Ask for the business licence

   Pawn shops and second-hand dealers are usually licensed by the city, not the province. A real shop can show its licence, or give you a number to check with city hall.

3. 3

   Check the business is registered

   Your province’s business registry shows whether the company exists and is active. Search for it on your provincial government’s website.

4. 4

   Look for complaints

   Your provincial consumer protection office takes complaints about businesses. The Better Business Bureau records complaints and how they were handled.

   • Consumer affairs offices, by province
   • Better Business Bureau
5. 5

   Check membership claims at the source

   If a shop says it belongs to the Canadian Jewellers Association or the Royal Canadian Numismatic Association, look it up with that association.

   • Canadian Jewellers Association
   • Royal Canadian Numismatic Association
6. 6

   At the counter

   Ask about fees before any test. Get the offer in writing, by karat and weight. Expect to show photo ID: many cities require it, and federal rules require dealers to identify clients on large deals.

   • FINTRAC: dealers in precious metals and stones

Check the item too

• In Canada a karat stamp should sit beside a registered trademark. That is the Precious Metals Marking Act.
• Know the melt value before you walk in. The calculator shows it in Canadian dollars.
• A buyer usually pays 60% to 85% of melt value. Far less is a reason to ask a second shop.

If something goes wrong

• A scale you do not trust: complain to Measurement Canada.
• An unfair deal or a broken promise: your provincial consumer protection office.
• A fraud: report it to the Canadian Anti-Fraud Centre and your local police.

In Canada pawnbrokers and gold buyers are licensed by the city, not the province. We match listed shops to the licence registers that Toronto, Winnipeg, Vancouver, Calgary, Edmonton, Victoria, Burnaby, Kelowna and Delta publish; elsewhere, ask the shop for its city business licence. This page is general information, not legal advice.