Selling gold for cash scams

TheZohanS

With the Budget on it's way and people already feeling the pinch some might might be thinking of selling their gold jewelry for cash.


A quick Google or YouTube search shows a lot of people in the US and the UK have been scammed.


I don't have any gold so it doesn't really affect me, but is/was anyone tempted?

kildara

Is it really a scam though?
The few that I looked at (I admit I only looked at a small fraction of the complaints on google) were of people who thought they should get £1000 for their gold and they only get offered £150 *example*.

Looks like the people who fall for these don't do their research.
Whilst I feel sorry for them - falling on hard times, needing money, having to sell off their (g)old jewellery etc - is it any different to people who fell for the Nigerian 419 scams?

If you're not happy with what they are offering you, don't sell.

PeakOutput

there are legitimate places out there if you look but i think your mad to do it unless your desperate for the cash

edit; and the legitimate ones will send your gold back to you if you are not happy with how much they offer

c - 13

There was a thread on Bargain alerts about it 2 - 3 days ago - here it is

TheZohanS

Apparently in the US the cheques have a cash-by date.
I also read that some companies, not all, send out return envelopes that only insure your items for a nominal amount, if your jewelry is worth €200 and the insurance is only for €100 and it gets lost you're out of pocket.

orourkeda

It seems that golds value is likely to rise significantly over the next couple of years. Thats according to several experts in the field and not me.

I wouldnt sell it to them even if I had gold.

Abi

TheZohan wrote: »

With the Budget on it's way and people already feeling the pinch some might might be thinking of selling their gold jewelry for cash.


A quick Google or YouTube search shows a lot of people in the US and the UK have been scammed.


I don't have any gold so it doesn't really affect me, but is/was anyone tempted?

I think those ads are cheap and scamtastic looking, can't stand them. Even if they do pay up, they aren't giving people the true value of their gold. It's true times have gotten tough, and people will be tempted to try this out. Which makes me hate these companies even more, they are taking advantage of people in a bad financial position.

Scumbags.

AnonoBoy

There's a 'Gold for Cash' place just opened up on Townsend Street in the city centre (of Dublin city, Ireland ).

Or at least I think it's just new, I only noticed it for the first time yesterday and I pass the area every day.

I was thinking of getting some of me gold teeth cashed in but I'm not sure about it yet. Yaaaarrrrr!

Run_to_da_hills

This will lead to a surge in burgularies and pensioner hold ups. Time to set the traps.

Amalgam

TheZohan, you're behind the times...

orourkeda

Abigayle wrote: »

I think those ads are cheap and scamtastic looking, can't stand them. Even if they do pay up, they aren't giving people the true value of their gold. It's true times have gotten tough, and people will be tempted to try this out. Which makes me hate these companies even more, they are taking advantage of people in a bad financial position.

Scumbags.

not only are they not giving the true value of the gold, they are likely to make a significantly higher profit in the future then they will if they sold it today

Abi

orourkeda wrote: »

not only are they not giving the true value of the gold, they are likely to make a significantly higher profit in the future then they will if they sold it today

I thought of this while I was posting, and forgot to put it in. I'm speshul

Amalgam wrote: »

TheZohan, you're behind the times...

I think I would rather swap my jewellery for cats than give it to the cash/gold scammers!

nice1franko

No difference between this and Nike selling 6 dolla runners for 120 euro IMO.

See also:

http://news.bbc.co.uk/newsbeat/hi/the_p_word/newsid_10000000/newsid_10003300/10003337.stm

The firm's boss, Jeff Aronson, makes no apologies for pricing, claiming that some people are willing to accept less for their gold in return for convenience and speed.

"Our customers are not interested in going to a pawnshop or a jewellery store," he said.
...
We put the findings to the Trading Standards Institute. Its joint lead officer for fair trading, Alonso Ercilla, said offering a low price for gold might be irritating but it's not illegal.

"Unfortunately there isn't much Trading Standards can do if people are getting a bad deal, provided the trader is not actually misleading the seller about the gold's worth," he said.

"Customers need to shop around and try to establish the price per gram.

"If you are using a website, read their terms and conditions. And don't automatically take the first price you are offered."

Cathal01

Abigayle wrote: »

I think those ads are cheap and scamtastic looking, can't stand them. Even if they do pay up, they aren't giving people the true value of their gold. It's true times have gotten tough, and people will be tempted to try this out. Which makes me hate these companies even more, they are taking advantage of people in a bad financial position.

Scumbags.

I myself work in a cash for gold company and really resent your statement. Sure if you are giving people the "true value" of their gold, you have no business. There is some crazy notion out there that all these people in the gold business at the moment are profiting hugely of other people's misery.
The reality is that no one is making big money out of this. The market in Ireland is too small and there are too many competitors. A lot of the stuff that comes in is old junk, stuff that people don't want anymore and it is their choice to sell. It is my personal experience that the vast majority of items coming in are old tat that people don't want anymore and it is by no means scamming people out of anything. We often advise people to bring their rings etc. to jeweller's and pawnbrokers as we only buy for scrap and they will not get a large amount as rings are so light.
We operate very fairly and do not "scam" people, you just obviously have no idea what you are talking about. It operates like any other business.... you provide a service and it is the customer's choice whether or not they choose to use this service.

KeyLimePie

TheZohanS

Cathal01 wrote: »

I myself work in a cash for gold company and really resent your statement. Sure if you are giving people the "true value" of their gold, you have no business. There is some crazy notion out there that all these people in the gold business at the moment are profiting hugely of other people's misery.
The reality is that no one is making big money out of this. The market in Ireland is too small and there are too many competitors. A lot of the stuff that comes in is old junk, stuff that people don't want anymore and it is their choice to sell. It is my personal experience that the vast majority of items coming in are old tat that people don't want anymore and it is by no means scamming people out of anything. We often advise people to bring their rings etc. to jeweller's and pawnbrokers as we only buy for scrap and they will not get a large amount as rings are so light.
We operate very fairly and do not "scam" people, you just obviously have no idea what you are talking about. It operates like any other business.... you provide a service and it is the customer's choice whether or not they choose to use this service.

You are taking the posters comments out of context. Click on the links the poster has quoted and called scamtastic.

You obviously have no idea what YOU are talking about.

Four-Too

It's a little like the currency exchange, those outlets change your money but charge some comission. I would say these gold buying businesses should not pay people less than 90% the value of the gold. Otherwise it's pure robbery. I went into a Dublin jeweller to see how much I would get for my gold chain which cost me 100E, he was offering 30E. Something wrong here?!

Cathal01

TheZohan wrote: »

You are taking the posters comments out of context. Click on the links the poster has quoted and called scamtastic.

You obviously have no idea what YOU are talking about.

Oh well, honest mistake. And I do know what I am talking about, I have just directed at someone in error

Apologies to Abigayle.

TheZohanS

Four-Too wrote: »

I would say these gold buying businesses should not pay people less than 90% the value of the gold. Otherwise it's pure robbery.

They only pay a scrap value for gold, i.e. a recycle value. You wouldn't get €30 off them for your piece.

Cathal01

Four-Too wrote: »

It's a little like the currency exchange, those outlets change your money but charge some comission. I would say these gold buying businesses should not pay people less than 90% the value of the gold. Otherwise it's pure robbery. I went into a Dublin jeweller to see how much I would get for my gold chain which cost me 100E, he was offering 30E. Something wrong here?!

He is buying for scrap, he is not buying it as a chain, he is buying it as a piece of metal that is going to get melted down. You could pay 3000EUR for a beautiful white gold engagement band, but as scrap it could be worth as low as 20-30EUR depending on its weight.

Four-Too

TheZohan wrote: »

They only pay a scrap value for gold, i.e. a recycle value. You wouldn't get €30 off them for your piece.

Maybe. But why the hell is it so expensive in the jewellers? It;s not fair that the jewellers are charging 3 times the actual value of the gold or more. Why do they recycle so-called "scrap" gold at all?

tony1kenobi

Abigayle wrote: »

I think those ads are cheap and scamtastic looking, can't stand them. Even if they do pay up, they aren't giving people the true value of their gold. It's true times have gotten tough, and people will be tempted to try this out. Which makes me hate these companies even more, they are taking advantage of people in a bad financial position.

Scumbags.

It's business.

Capt'n Midnight

These guys are legit http://www.catsforgold.com/

fergalr

orourkeda wrote: »

It seems that golds value is likely to rise significantly over the next couple of years. Thats according to several experts in the field and not me.

orourkeda wrote: »

not only are they not giving the true value of the gold, they are likely to make a significantly higher profit in the future then they will if they sold it today

Abigayle wrote: »

I thought of this while I was posting, and forgot to put it in. I'm speshul

Hey, can't speak whether the businesses in question are scams or not, but this specific point against them don't make sense.

You seem to be criticising them here for buying peoples gold today, on the basis that they know it'll be worth more in future than it is now, because they know the gold price will rise - and so the purchasers are conning people who are basing the worth of the gold they have off the current market rate.


I'd just like to point out, that you can't really accuse someone of giving someone an unfair deal by basing their payment on the current market price of gold, when 'experts' say that gold will be more expensive in future.

The current market price is (very close to) the best estimate of the best experts of what the gold will be worth in future - the best estimates of the future value are already factored in, so to speak.


For example consider this - if the best experts really did think gold would be worth a lot more in a few years, they'd try and buy the gold themselves. This would drive the price of gold up until they no longer thought it would be worth buying, and so on.

As such, take the opinion of any expert who tells you that gold is currently undervalued with a grain of salt. It may well be the case that they are right, but its very hard to tell, and the current market price is generally the best estimate of what a regularly traded commodity like gold is worth - certainly as far as a punter selling some old gold jewellery should be concerned.

Let me put this another way - if these same 'experts' tried to sell you some gold at greater than the current market rate - on the basis that it would appreciate in future - would you buy it from them?


It's important to realise this - if they are giving the current market price of gold for the goods, then they are giving a fair deal. If they choose to speculate on the gold price rising, then that's their business, but you can't really accuse them of profiteering or conning anyone by engaging in that speculation.


Again, for clarity, this is a completely separate issue to whether they do in fact give anything near the current market rate, or whether they just steal the jewellery, etc, but its important to realise.

jumpguy

Abigayle wrote: »

I think those ads are cheap and scamtastic looking, can't stand them. Even if they do pay up, they aren't giving people the true value of their gold. It's true times have gotten tough, and people will be tempted to try this out. Which makes me hate these companies even more, they are taking advantage of people in a bad financial position.

Scumbags.

Completely agree, y'know by just looking at these ads it's some cheap-o company out to rob you. Only a fool would do it. With the higher-than-nominal value of gold these days and the recession, it's definetly an opening for scammers and tricksters.

If you have gold to see, like a watch, you'd probably get more for it off ebay or something...

Senna

Four-Too wrote: »

Maybe. But why the hell is it so expensive in the jewellers? It;s not fair that the jewellers are charging 3 times the actual value of the gold or more.

Its called business, i.e. making profit. Say a burger from a chippy, it cost 25c for the meat and another 25c for bun, salad etc, but you or i pay €4.00 for it.

OutlawPete

I posted this on the 'Selling Gold' thread also back in Nov..

http://wwww.boards.ie/vbulletin/showpost.php?p=63198905&postcount=21

I hate those bast*rds.

"Have you any spare gold.." :rolleyes:

Same with those Cash Converters places, You never see them opening a shop in Howth or Dalkey. It's all about being there to rip the lower class off when they are broke.

Close to 33% apr they charge for people even just pawning something for a few days.

Some shower of feckers altogether.

cloneslad

I would sell my gold, but I don't have any cos it's ugly as hell!!!

Overheal

kildara wrote: »

Is it really a scam though?
The few that I looked at (I admit I only looked at a small fraction of the complaints on google) were of people who thought they should get £1000 for their gold and they only get offered £150 *example*.

Looks like the people who fall for these don't do their research.
Whilst I feel sorry for them - falling on hard times, needing money, having to sell off their (g)old jewellery etc - is it any different to people who fell for the Nigerian 419 scams?

If you're not happy with what they are offering you, don't sell.

Not just a scam but a High Profile Scam

http://consumerist.com/2009/01/cash4gold-offers-blogger-3000-to-remove-negative-post.html
http://consumerist.com/2009/02/10-confessions-of-a-cash4gold-employee.html
http://consumerist.com/2009/02/florida-ag-examining-cash4gold-complaints.html
http://consumerist.com/2009/07/outofyourlifecom-the-man-eaters-cash4gold.html
http://consumerist.com/2009/09/the-article-cash4gold-doesnt-want-you-to-read.html
http://consumerist.com/2009/09/internet-alerted-to-our-cash4gold-investigation.html
http://consumerist.com/2009/09/cash4gold-activates-magical-press-release-machine.html
http://consumerist.com/2009/09/update-cash4gold-defendant-liberis-files-to-vacate-default.html
http://consumerist.com/2009/09/cash4gold-threatened-jail-if-negative-comments-werent-removed.html
http://consumerist.com/2009/09/cash4gold-drops-consumerist-from-lawsuit.html
http://consumerist.com/2009/10/cash4gold-hit-with-racketeering-and-fraud-class-action-lawsuit.html

Still in business if you cant believe it.

ya-ba-da-ba-doo

Four-Too wrote: »

It's a little like the currency exchange, those outlets change your money but charge some comission. I would say these gold buying businesses should not pay people less than 90% the value of the gold. Otherwise it's pure robbery. I went into a Dublin jeweller to see how much I would get for my gold chain which cost me 100E, he was offering 30E. Something wrong here?!

As much as I despise those cash for gold advertisements, the attitudes of the people selling is wrong.

Four-too, did you honestly expect over €50 euro for that chain? That money is coming out of the jewelers pocket. That jeweler will probably have to hold that in his shop for a good while longer before it sells. There really isn't a big market out there for second hand jewelry.


It was €100 when you bought it. As soon as you open the package of that chain it's depreciating. Like a car, the second you drive your brand, spanking new Merc out of the dealers that's 5% value gone at the very least.


Presumably, you've had the chain a little while. Few scratches here and there. The most that jeweler's going to get for that is €50 - €60. So to think you would be entitled to at least €90 is completely unreasonable to say the least!!


As i've said I hate the idea of the ads on the telly trying to benefit off people's financial misfortune but I have no pity for people who walk into a jewelry shop expecting back what they paid for the item.




/rant

SoupyNorman

I dont think its a scam as in they pay you for the goods you send. HOWEVER I do believe they will try hoodwink you at every available opportunity, use all the tricks in the book in order to get you to sell.

My problem is that this type of business has sparked off a frenzy of burglaries as there is no face to face interaction so criminals can operate with anonymity. On the whole, as Abigayle pointed out the ads are cheap and scammy looking and are designed to dupe suckers.

bonerm

Overheal wrote: »

Not just a scam but a High Profile Scam


http://consumerist.com/2009/02/10-confessions-of-a-cash4gold-employee.html


Still in business if you cant believe it.

I read this article before. I think in a nutshell it's pretty much all anyone needs to know about cash4gold (and other varieties thereof).

omahaid

Abigayle wrote: »

I think I would rather swap my jewellery for cats than give it to the cash/gold scammers!

I too would be interested in swapping my gold for cats, do you have any more information on this?

monkeypants

Overheal wrote: »

http://consumerist.com/2009/01/cash4gold-offers-blogger-3000-to-remove-negative-post.html
http://consumerist.com/2009/02/10-confessions-of-a-cash4gold-employee.html
http://consumerist.com/2009/02/florida-ag-examining-cash4gold-complaints.html
http://consumerist.com/2009/07/outofyourlifecom-the-man-eaters-cash4gold.html
http://consumerist.com/2009/09/the-article-cash4gold-doesnt-want-you-to-read.html
http://consumerist.com/2009/09/internet-alerted-to-our-cash4gold-investigation.html
http://consumerist.com/2009/09/cash4gold-activates-magical-press-release-machine.html
http://consumerist.com/2009/09/update-cash4gold-defendant-liberis-files-to-vacate-default.html
http://consumerist.com/2009/09/cash4gold-threatened-jail-if-negative-comments-werent-removed.html
http://consumerist.com/2009/09/cash4gold-drops-consumerist-from-lawsuit.html
http://consumerist.com/2009/10/cash4gold-hit-with-racketeering-and-fraud-class-action-lawsuit.html

Good site. Lots of reading there. Especially enjoying the article on Best Buy's "Optimisation" service. Haven't dealt with that company in over a decade and I don't miss it.

Wossack

mail order fencing

Capt'n Midnight

ya-ba-da-ba-doo wrote: »

It was €100 when you bought it. As soon as you open the package of that chain it's depreciating. Like a car, the second you drive your brand, spanking new Merc out of the dealers that's 5% value gone at the very least.

Not sure now but a few years ago markups of 100% on the wholesale price were fairly common at the cheapish end of the scale for jewellery for high street jewellers

Capt'n Midnight

tony1kenobi wrote: »

It's business.

so is this
http://www.quickquid.co.uk/fee-schedule.html

Typical 2356% APR. :eek:
- they list lower APR's so I assume there are higher ones too :eek::eek:


And that's before the loan rolls over

If you have a one-period loan, you may extend your loan a maximum of five times by logging into your personal account and selecting the "Request An Extension" link or by calling our Customer Service team. By making this selection, the principal of you existing loan will be 'rolled over' into a new loan due on your next pay date. If you have a two-period loan, you may extend your loan a maximum of four times. Extensions, partial payment and early payoff requests must be received by 17:00, at least three working days prior to your due date

ro09

TheZohan wrote: »

With the Budget on it's way and people already feeling the pinch some might might be thinking of selling their gold jewelry for cash.


A quick Google or YouTube search shows a lot of people in the US and the UK have been scammed.


I don't have any gold so it doesn't really affect me, but is/was anyone tempted?

Yes there is an Ad running on TV - cash for Gold, I was thinking to myself it sounds really dodgy.

orourkeda

orourkeda wrote: »

It seems that golds value is likely to rise significantly over the next couple of years. Thats according to several experts in the field and not me.

I wouldnt sell it to them even if I had gold.

Who would ya sell it to?

Capt'n Midnight

Capt'n Midnight wrote: »

so is this
http://www.quickquid.co.uk/fee-schedule.html

Typical 2356% APR. :eek:
- they list lower APR's so I assume there are higher ones too :eek::eek:


And that's before the loan rolls over

Out of interest,
A. What do you think is wrong with 2356% APR?
B. What % APR do you think would be appropriate for this service?

Bear in mind, "A" stands for "Annual" and these loans are far from reaching that duration.

Fighting Irish

TheZohan wrote: »

With the Budget on it's way and people already feeling the pinch some might might be thinking of selling their gold jewelry for cash.


A quick Google or YouTube search shows a lot of people in the US and the UK have been scammed.


I don't have any gold so it doesn't really affect me, but is/was anyone tempted?

It's not really a scam when they give you a price and you decide to take it or not. Please stop protecting the stupid or they'll never learn

Overheal

monkeypants wrote: »

Good site. Lots of reading there. Especially enjoying the article on Best Buy's "Optimisation" service. Haven't dealt with that company in over a decade and I don't miss it.

You should check out the company profile for Walmart: its horrifying.

http://consumerist.com/company/walmart/

Fighting Irish

Four-Too wrote: »

Maybe. But why the hell is it so expensive in the jewellers? It;s not fair that the jewellers are charging 3 times the actual value of the gold or more. Why do they recycle so-called "scrap" gold at all?

lol

how would the world work if every business sold items for the same price they bought the item

Fighting Irish

OutlawPete wrote: »

I posted this on the 'Selling Gold' thread also back in Nov..

http://wwww.boards.ie/vbulletin/showpost.php?p=63198905&postcount=21

I hate those bast*rds.

"Have you any spare gold.." :rolleyes:

Same with those Cash Converters places, You never see them opening a shop in Howth or Dalkey. It's all about being there to rip the lower class off when they are broke.

Close to 33% apr they charge for people even just pawning something for a few days.

Some shower of feckers altogether.

It's not their fault they're in buiness

OutlawPete

Fighting Irish wrote: »

It's not their fault they're in buiness

So, businesses can never be morally corrupt?

Fighting Irish

OutlawPete wrote: »

So, businesses can never be morally corrupt?

As long as they follow the law, they can price anything at any price

OutlawPete

Fighting Irish wrote: »

As long as they follow the law, they can price anything at any price

I realize this but that does not negate my point.

Just because some business man or women operates within the law, does not mean they are not scumbags, for how they operate.

Some people actually have a conscious - even when in business.

bonkers

come to canada and sell your gold for cash with Ruseel Oliver

he is a legend

or here

http://www.youtube.com/watch?v=NSQVVHyvOZU

Fighting Irish

OutlawPete wrote: »

I realize this but that does not negate my point.

Just because some business man or women operates within the law, does not mean they are not scumbags, for how they operate.

Some people actually have a conscious - even when in business.

IMO the only way people will learn is to let them make mistakes, the reason the world is being dumbed down isn't because of "x factor" "big brother" etc. It's because the whole world wants to protect the stupid, which in turn is actually holding them back

Jammyc

Tbh all it does is encourage people to break into houses for gold

Fighting Irish

Jammyc wrote: »

Tbh all it does is encourage people to break into houses for gold

until they sell their first batch of gold and get about €20 for it