If you're smart about WU, then it is 100% safe.
Q.) Does it need to be verified to receive gold?
A.) No it doesn't. You don't need to create a Western Union Account to send or receive money. All transactions can be done in a store if needed. Petrol Stations, Super Markets, and Post Shops, are just a few of the many places that have Western Union.
Q.) How safe is it compared to paypal?
A.) WU (Western Union) is 100% safe IF you pick up the money before sending the goods. Unlike paypal, once the money has been picked up IRL, it cannot be charged back. Be careful though, if someone offers to send the WU and then you need to give them the goods before picking up the money, be very careful. WU payments can be canceled before they've been picked up. It's happened to me, and I lost 150m.
If you have any other questions, don't hesitate to PM me, or add my MSN.