Tuesday, September 1, 2009

A Fool and His Money...

The Article Cash4Gold Doesn't Want You To Read


Seriously, folks - did any of you believe those TV adverts? It was not immediately obvious that Cash4gold was most probably a total fucking scam? How were they paying for the advertising? I assume by ripping people off is how, although I can't prove anything. I guess we'll have to wait and see how all this shakes out, but those adverts certainly called out my red flags.

Big time.


Edited for follow-up from Consumer Reports here:

Our mystery shoppers sent identical 18-karat chains and pendants (retail price $175; meltdown value about $70) to three gold buyers between mid-May and early July. They also took the gold to jewelry stores and pawn shops in Louisiana, New York, and Texas. The cash-for-gold companies paid 11 to 29 percent of the day's market price for gold; the other venues, about 35 to 70 percent. All the checks arrived a few days after the companies received the jewelry.


So, if I understand that correctly, a reputable company's lowest offers would begin at 6% above the highest offers made by the "cash-for-gold" type companies. There's quite a difference between getting $10 versus $70 for something with an actual value of $100. I guess some people want the easy way out, but why even give up the last $30 on a prized object? Sell it yourself to someone that wants it for what it is - maybe you can't get $175 (full retail), but maybe you can snag at least $100 (well over the melt down value of the gold alone). I guess there are risks in selling it yourself, but I would think it would be worth it overall.