Cash for Gold Comercials

Discussion in 'Off-Topic' started by HarveyH42, Sep 13, 2009.

  1. HarveyH42

    Thread Starter Active Member

    Jul 22, 2007
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    Noticed there has been an increasing number of companies advertising on TV, where you mail in gold jewelery and such, and they mail out a check. Many state that gold is at its highest value, so don't understand why a successful business would buy, when prices are high. I don't have any significant quantity of gold, nor would I trust it to the USPS, or strangers on TV. Figure its a simple way for burglars and robbers to unload their loot.

    Been think if maybe this is some sort of economic recovery scheme, since its probably creating a demand for gold, which would also increase the value of some country's currency, probably not ours though. Don't really understand the significance of hoarding gold, just a shiny metal to me.
     
  2. beenthere

    Retired Moderator

    Apr 20, 2004
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    The price is way up, though. Perhaps as far as $1000/oz. Those are Troy ounces, though - 12 to the pound.

    But it's enough that there is a minor gold rush back in California, with unemployed people panning for gold in a couple of rivers.
     
  3. Wendy

    Moderator

    Mar 24, 2008
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    That, and bet money they aren't paying full price. They operate at percentages, so even if the percentage is the same, the spread is wider than usual.
     
  4. Ratch

    New Member

    Mar 20, 2007
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    beenthere,

    Yes, but don't forget to emphasize that a Troy pound is 0.82 of what a Avoirdupois pound is. A Troy ounce is 480 grains and a Avoirdupois ounce is 437.5 grains. The price the gold skimmers give is the "melt price", which can be quite a bit lower than what fashioned jewelry might fetch. Jewelry is usually not pure gold. And can you trust the skinners not to cheat?

    Ratch
     
  5. wr8y

    Active Member

    Sep 16, 2008
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    Easy: They ain't paying you what it's worth! THEY ARE CROOKS!

    I TRIED to tell a friend to stay away from them, but she wouldn't listen. Sure I didn't KNOW they were crooks at the time, but it sounded "dirty" to me - like it does to you.

    This spring, she sent in some jewelry that the local jeweler offered her something like $175 or so for.

    She thought "those guys on TV" would do better. Sent the stuff to them, got a check in 10 days or two weeks.
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    ..... for some weird amount, $16.35 or $18.85.... it was less than $20 I know that. Said she had a week to change her mind but the week was up by the time she got the check!

    Any other questions? :)
     
  6. HarveyH42

    Thread Starter Active Member

    Jul 22, 2007
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    $20 for $175 worth of jewelery? Damn I'd be upset, I feel ripped off every time I buy jewelery for a woman, $200 for thin chain...

    Hope she complained, pawn shop would likely have given her more than that. Guess it's tough to prove, but should be easy to catch them in the act. Good story for some reporter to do. That is on huge ripoff. If they had $100 for the $175, I wouldn't be happy, but not that upset. $20 is less than what they paid in postage, most likely.

    As a child, I use to think about going out, and looking for some gold in the rivers. Figured there must still be some, just not enough to get excited over. Some of the old mines probably still have plenty in them too, just not worth the effort.
     
  7. jpanhalt

    AAC Fanatic!

    Jan 18, 2008
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    @Harvey42

    A couple of points:
    1) Costume jewelry, e.g., gold chains. lockets, ear rings, and the like, is basically identical regardless of brand and markup (an uncle was a successful jeweler in OKC). Buy based on price and gold content.
    2) I agree the USPS is a lousy service. It losses things all the time. Odd thing is, though, at least some commercial bullion gold dealers use it exclusively rather than FedEx or UPS, because if you mess with the USPS, it is a Federal crime and the FBI gets involved. Of course, they ship registered, insured, and signature required, which is not cheap.

    John
     
  8. jrap

    Administrator

    Jun 25, 2006
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  9. RiJoRI

    Well-Known Member

    Aug 15, 2007
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    I've bought and sold gold Canadian Maple Leafs at the local jeweler. They look up the price on Kitco. Kitco shows the buying price and the selling price. There is some difference between the two, so when I buy, I pay the higher price; when I sell I get the lower price. The difference is NOTHING like $150!

    --Rich
     
  10. jpanhalt

    AAC Fanatic!

    Jan 18, 2008
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    There is a HUGE difference, depending on the state, if one is in the USA. Some states charge sales tax on gold coins as if they were commodities like true bullion; others do not. Ohio does. NY probably does not. It is a bit of a quirk.

    As you say, the buy/sell spread is not that great, if you can go to a dealer and not pay sales tax. Also, remember that the nature of gold investment is quite different from investment in stocks and the like. Ford stock (F) has more than tripled in the few months I have owned it. Gold has not done the same and hopefully never will. However, friends I have had who left China when Mao took over could not have carried their Fords with them. ;)

    Gold is protection against financial disaster and hyperinflation. It is not particularly good protection against the government, even in the USA -- just ask anyone who had FDR confiscate their gold. In an extreme example (e.g., Mao), it may save your family, but at the risk of losing your life.

    John
     
  11. ke5nnt

    Active Member

    Mar 1, 2009
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    I realize I'm dredging back up a thread that's a week old, but consider this when thinking about gold as an investment.
    Gold is marketed as a "security". What are you securing? If the dollar becomes so weak you can't really trade with it, so few people will have gold that it becomes just as worthless. When supplies are limited, it becomes other supplies that have trade-value.

    As an example, think New Orleans after hurricane Katrina. You could trade a clean pair of blue jeans for a few bottled waters a whole lot faster than you'd get those waters for a gold nugget, or coin. What is gold really going to be worth when/if crap really hits the fan? you can't eat it, you can't make clothes out of it, and you can't build shelter with it.

    (I realize that you probably CAN in fact do all three of those things with gold, but not practically) :rolleyes:

    Just a thought.
     
  12. jpanhalt

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    New Orleans before, during, and after Katrina was not a case of financial disaster and hyperinflation.
    Edit: By financial disaster, I mean collapse of the system, not just loss of money. Loss of property may be a disaster for the individual(s), but it does not affect the system as a whole.

    The examples of when Mao took over China, pre-Hilter Germany, Argentina, and so forth are completely different. Gold is a transportable commodity. Its durability and transportability are what provide security.

    John
     
    Last edited: Sep 24, 2009
  13. Wendy

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    Mar 24, 2008
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    Gold has a mystic about it that nothing else does. It was the original money. It is still viewed as money by weight, even if it isn't in coin format. The fact it doesn't tarnish or decay is part of it, and the fact it is a very pretty metal that is easily worked into art and jewelry. If civilization collapsed tomorrow, I suspect gold would become money as we know it again once humans got beyond the sustance level again.
     
  14. HarveyH42

    Thread Starter Active Member

    Jul 22, 2007
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    I was just wondering how crooked these companies were. While looking through the web, found a site called 'Ripoffreport.com', which seemed like it was consumer supportive, and had numerous complaints. Went back last night, all was gone, and the new report is that Cash4Gold has spent $350k on a package tracking system, gone all out to resolve issues and complaints, created policies to correct some of the major problems that were reported. Figure a huge pay off, or court order. Could see them admitting a mistake, or reporting the company was trying to get things fixed, since they claimed they weren't prepared for such high volume. But, to remove all the negative stuff, and sing praises... That site lost all credibility with me.

    Found an interesting blog entry, should have save the link (it was late), so damn amusing. The guy pulled some crap out of his trashcan, a pull tab off a beer can, lug nut, a few other similarly common items, sprayed them with gold paint (not a real thorough job either from the pictures). Sent the items in, got a letter stating something about just because an item looks like gold, doesn't mean it is, plus a check for $1.19 or something, it was late, and laughing.

    Other than the low pay offers, I was wondering if they do anything to check to see if items were stolen property. Once it's melted, the company is safe, so is the seller, but if somebody sent in heirloom quality stuff, or something of some serious value beyond melt weight, would they report it, or check into it? Wonder just how many of their customers have a 'questionable' background. Seems fairly anonymous, other than cashing the check.
     
  15. Dave

    Retired Moderator

    Nov 17, 2003
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    This seems to have also picked up here in the UK too. I noticed the other night there were a couple of adverts on TV for some company offering the same cash-for-gold Harvey mentioned in the OP. The first thing I thought was its a scam and mentioned to my missus that they wouldn't be giving you what it is worth, nowhere near - I'm cynical like that!

    The other day I was walking down our local market street and noticed that all the jewelries are offering cash for gold; it was quite weird because it is just something you typically don't see round our way. At least these guys will give you an estimate there and then so you can make a choice thus avoiding the ripping off wr8y mentioned before.

    Like others I wonder what checks, if any, are done on the validity of items.

    Dave
     
  16. beenthere

    Retired Moderator

    Apr 20, 2004
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    Oddly enough, I just found a Cash4Gold spam in my email. They do get around.

    A cynic might say that the various outfits are simply operating to fence jewelry and objects that might get questioned in a face-to-face pawn shop. After the last Administration worked so tirelessly to stop all governmental regulation, it's really not surprising to see stuf like this going on.
     
  17. jpanhalt

    AAC Fanatic!

    Jan 18, 2008
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    With all due respect, let's not turn it into a political debate. It is happening under the current administration and would happen under any administration that had spent $3 trillion more than it expected to collect in taxes.

    John
     
  18. Wendy

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    Mar 24, 2008
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    The real problem is if you send them your gold you've lost control. Even if you document it to the moon it still becomes your word vs. thiers, and after it is all said and done they'll return your package after an extreme amount of hassle. How many people will follow up? This is where the money is.

    With a local jeweler you are dealing with someone local, and have a reputation to protect.
     
  19. Dave

    Retired Moderator

    Nov 17, 2003
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    Ha! No surprise at all. If there's money to be made, e-mail spammers with get in there, pronto! :D

    Dave
     
  20. Dave

    Retired Moderator

    Nov 17, 2003
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    Yeah, I agree. It is more the point that until recently they weren't offering these "services". I guess where there is money to be made...

    Dave
     
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