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Cash 4 Gold: Scam! Real Tips for Selling Your Gold Jewelry

This article was written by in Consumer. 61 comments.


Consumerist has pointed out a discussion on ComplainsBoard about Cash4Gold, an outfit that promises top dollar for trading in your gold jewelery. With the tight economy and gold prices relatively high, many consumers will find this a good deal. Unfortunately, it’s not that easy to get the true value for your traded in items. A former employee offers testimony about this particular company’s practices.

Here are some of the good bits.

We do offer a 100% Satisfaction Guarantee or your jewelry returned, BUT THE CATCH IS, that the guarantee is to contact us within 10 DAYS from when your check is DATED. (This begins with the time it took for the accounts payables dept. to ISSUE the check and also including the TRANSIT TIME for you to receive your check in the mail. **** NOTATE THE COMMERCIALS THAT INSINUATE THAT YOU GET YOUR CASH IN 24 HRS.*** If you request (sign) for FAST CASH (direct deposit) you automatically WAIVE your rights to have your items returned, EVEN if you are not satisfied with amount of your deposit.

For those who do get in touch with us within the allotted time frame, we already know what you are calling about. Customers want their items returned, because there check amount is so insultingly LOW. The first thing a Rep will ask you is “HOW MUCH WERE YOU EXPECTING TO GET BACK?” This way we can know how much to “BONUS” you.

Definition of a BONUS: We issue low checks just to have you call us back if you are smart enough to realize that you just got scammed. For the smart one’s we are paid to offer u a bonus up to 3x the original amount of your check and you accept. For ex: Sally Smith receives a check for $27.86 for a Rolex watch(which we don’t issue value for), a class ring, a ring with diamond chips, a pair of earrings with emeralds, as well as a few sterling silver pieces, and maybe a few items that were really of no value. Now Sally Smith calls the cust srvc dept, where she speaks to a rep who seems so concerned and will see if she can do better with the amount by speaking to a “SUPERVISOR”. We then place the caller on Mute, and speak to our neighbors or doodle on a sheet, or twiddle with our hair for about 45 seconds, while we are supposedly speaking to our supervisor about Ms. Smith’s complaint. We then come back with an offer to “BUMP UP YOUR MELT DATE or any other lies the cust srvc reps can think of, and offer you a total amount of $53.20 which is a little under double the amount of your original check; in which case if you accept, the cust srvc rep makes a 15.00 bonus off of your transaction. If the customer service rep offers you under triple the amount of your orig check, he/she makes 10.oo in bonuses.

If you accept the offer, the deal is done, and you are told that the call is recorded (which most of the time, the record button does not work, or the box if full.)It’s just a way to make your feel binded by a verbal contract. IF you do not accept the deal, you have to return your check, and it takes sometimes up to a month to receive your items back after we receive the check.

All of the spelling and grammatical errors were in the original. If this story is true, and I suspect that it is, it is a shame that companies can get away with this behavior. If you must trade in your gold for money, find a reputable dealer in your area. Verify your choice with the National Association of Jewelry Appraisers or the American Society of Appraisers. And most of all, don’t expect to get “melt value” for your gold, but don’t get ripped off by an outfit like Cash 4 Gold, either.

Updated February 10, 2011 and originally published February 3, 2009. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes, also known as Flexo, is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow Luke Landes on Twitter. View all articles by .

{ 61 comments… read them below or add one }

avatar Craig

This is a great post. These commercials are on non stop and I have to believe they are making a killing because of it. I am not interested in selling my gold, but am intrigued by the business plan. Glad to see you had the time to look into it more to help everyone out.

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avatar Tracy

They’re making a killing? really?
I’ve seen the commercials non-stop as well and find the preposterous.

“Call us and we’ll give you an envelope. Put you jewelry into out envelope and send it to us and we’ll you’ll get a check in the mall within 48 hours”.

Come on! People believe that!?

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avatar Carl

From my experience, I shopped around via web. I shopped around locally. How much a gold buyer will pay out will depend on current prices. However, because of the volatility in the market now, some gold buyer prices will be base on fixed lower price others will use a real time based pricing structure. It helps to know in advance how much weight you have in gold. If you have a access to some kind of scales you can find out how much gold is in a 10k gold class ring, for example. If you have a gold bracelet, and it is not stamped 10k, 14k, etc, then a test is performed to determine this. Then you can use this calculator to get close idea of the value of your piece of jewelry. For example, a men’s 10k gold class ring with some kind of birthstone, will weight about 5-7 pennyweights, depending on the ring size.

I sold a 10k men’s high school class ring and an 18k men’s signet ring for combined amount of about $220 back in Oct 08.

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avatar mike

how much did you get 4 just the ring i have a gold 1920 class ring im tryin to get at lease $200 for it

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avatar Dan

If everthing relayed by this insider is true, it’s another example of the worst in human nature that greed brings out, especially when things get rough in the economy and people get desperate. I know someone who’s been sellling off gold and they went to a few different jewelers with the same items and asked them to quote on what they’d take the gold for. The values were wildly different, but with the highest offer, they at least felt they were the most ethical/trustworthy. In all reality, they’re probably still taking an enormous markup, but I’d venture to guess it’s far and above what this ridiculous outfit is offering.

For those savvy enough to figure out the actual gold content in their items with a simple conversion and the spot gold price, you should be able to estimate what your items are worth and call out any low offers.

By the way, watch out for a Cease and Desist letter; it’s pretty common these days (as I learned last year) when you criticize an outfit with unsavory practices.

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avatar Carl

BTW, I would suggest to buy some gold coins or bullion with your cash payout such as American Gold Eagles or Canadian Maple Leafs. I used my cash payout and bought 2 x $5 Canadian Maple Leafs. The $5 gold pieces contain 1/10 of an ounce of gold. They are the purest, too.

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avatar castocreations

Those commercials make me so mad.

Send your gold to a refinery and you will get near the market value. I send in silver scraps (from my business) and never more than 16 ounces and generally get a check for several hundred dollars. Gold would net you much more than that.

I use Midwest Refineries and they are super easy to work with.

Places like Cash4Gold are just scam artists trying to take advantage of people’s fears.

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avatar Kp

Thank you for this article!

I hate their commercials and it seems like such a ripoff. Now I know it’s true.

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avatar VoiceofReason

I’m curious how it’s a scam? You send them your stuff, they send you a check. If you are unhappy with the amount you can send it back and get your stuff returned. What part of that is a scam?

As for the consumer report article, most if not all of that has been explained and proven false. It’s amazing how much negative stuff you can find about a place when you look.

Also, keep in mind that you are reading nothing but reactions on the internet. Quick question, how many of you would write a blog/post about a company when things go well?

Say you go to dinner, the waiter is awesome, the food is fantastic and the bill is cheap. Do you think “I’m going to go home and write an article on this place, tell everyone about it”…..of course you don’t.

Now, if you go and you are very unhappy with the things that happen you are more apt to want to vent to the world.

Same theory applies here, you are only hearing from the people that were angry enough to blog, noone hears from the hundreds of thousands of happy customers!

They must be doing something right if they paid for a Super Bowl Ad

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avatar Really

Really, I have left many a positive note on hotels, resorts, cars, etc. You must be kidding if you think this is a good deal. They can afford a super bowl ad by ripping off gullible people like you.

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avatar Michael

I’m not for the company or against it. But they NEVER say how much you should expect. Their like any company trying to make a buck. No company EVER tells the full story or what to expect up front.

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avatar George

They aren’t doing anything right, they paid for the Super Bowl ad with all the money they ripped off from the poor consumers. They ought to be ashamed of themselves!!!. I hope they are exposed on a major news network. Reading stuff like this makes me so angry.

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avatar Julia Reid

It is a scam because they offer you laughably lower than what the items are worth. I was offered $30 for 3 gold rings – that works out to only $10 per ring. Ridiculous. The rings were wedding bands and an engagement ring

I obviously called them to let them know that $30 was far too low and that I want my rings back. They shockingly told me “Oops! Your rings have already accidentally been melted! We can offer you $90 for the melted rings.”

Now what am I to do? They can’t follow through on the guarantee of returning my rings because of an “ACCIDENT”. And they are offering me three times the original offer.

Any ONE of those rings would be worth more than $90. But…they are gone! So getting them back is not an option. It seems I am forced into accepting a check that I still consider to be far too low because I CAN’T get my rings back.

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avatar Craig

It’s interesting that Voiceofreason would be so vocal on this matter. I have a feeling that he may work for cash4gold. I buy gold, thats what I do. I sent a piece of gold to the cash4gold people. What I was paid was the smallest amount I have ever seen for gold, I couldn’t believe there are people that can take such advantage of others that are down on there luck and need a few bucks to make ends meet. Gold is bought in what is called ‘penny weights’ there are 20 penny weights (dwt) in an ounce. This is how it breaks down and how a jeweler buys gold.
1. They only buy the gold, not the other alloys that are in the gold. 14k is only 58.3% gold.
2. Weigh the gold and in the case of 14k subtract the alloy weight. (*.58)
3. Check the spot price of gold.
4. Depending on the spot price, a reputable jeweler will offer you between $16-$20 Per penny weight.
5. If you agree, there is a paper to sign and you have to produce an ID (this info is for the
jewelers records and never goes anywhere).
6. The Jeweler pays you and everyone is happy.
7. The jeweler has to hold onto that gold for a determined amount of time, this is governed
by the state and local ordinances.
8. After the predetermined hold time they sell it to a refinery.

Cash4gold gave me $7.50 per penny weight.
This is what profit margins are for the jeweler: (in round numbers)
If Spot price is $1200.00 for one ounce of gold.
Minus the alloy 14k is $696.00/Oz.($34.88 dwt)
paying $18.00 per penny weight I would give the customer $360.00
if the customer is happy and agreed my gross profit would be $336.00.
With cash4gold, at $7.50/pennyweight the same transaction….
Payment to the customer would be $150.00
There gross profit would be $750.00……
It may not be a scam, but it is taken advantage of the people that are having money trouble
and think they have no choice. you be the judge……

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avatar Austin

It’s a scam because they can, and did in my case, claim to have never received the items in the first place. I found out through a little research that this sort of thing happens all the time. They apologize and claim that the gold never found its way to them and that’s it – you’re out. These people (Cash 4 Gold) are robbers – period!

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avatar ycg675

Most jewelery stores will give you FULL melt value (or even more) in store credit. If you are looking to trade in your old unworn jewelry for something you will ware, it is normally a decent deal. Just remember one thing, that the store credit is normally on retail price jewelry (an no one pays retail).

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avatar castocreations

So called “voice of reason” … it’s the same way that payday loans are scams. Perhaps not in the literal sense of the word, but in the spirit of how they affect consumers.

The amount of money a person gets back for their gold or silver items is ridiculously low compared to what it is worth. They are taking advantage of people’s desperation.

People should be more responsible for making better decisions, but if they don’t know any other way to redeem their products for money then where else would they go but one of these gold for cash sharks.

I wouldn’t say they are doing something “right” just because they can afford a super bowl ad…that only proves that they’ve duped enough people to make their wallets fat.

And by the way, I often write good reviews about companies that do a great job or have wonderful service. I make a point to do it because it is so rare to see great reviews vs complaints.

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avatar Matt

I guess you haven’t learned yet that ALL sales are “taking advantage of people’s desperation”…

To add my 2 cents though, I too write about good experiences online, not just negative ones.

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avatar Barney

The thing is with the supur bowl advertizement is that they also get to write this off on there taxes therefore they have to steal more money

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avatar Ray Holley

I get calls from people a couple of times per week who sent their items in to Cash4Gold and got teeny tiny checks back in the mail. They usually tell me that they know their stuff is worth more than that, and so far every one has been right. The last one I got was from a gal whose check from Cash4Gold was for less than $114. When she finally got her stuff back from them in the mail and sent it to us, we sent her a check for $356, and the spot price of gold was actually a little bit lower when we cut her check.

Bottom line- Don’t trust ANYONE who won’t tell you how much they pay up front! Not even your local pawn shop! If they won’t tell you over the phone how much they pay per gram or per pennyweight for net weight of pure gold, they will rob you blind, all with a smile on their faces.

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avatar martin

what business are you?

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avatar Shawn

There are several factors most people don’t take into account when selling their gold or silver jewelry. Namely these involve local laws that the jeweler, pawnshop, or broker MUST abide by in order to purchase your precious metals. Depending on where you are located these laws vary widely. For example, when I buy gold from a customer I am required to fill out a form describing each piece I purchase (even broken and useless pieces) send that form to the sheriff’s department, and hold onto the piece for 2 weeks before I can do anything with it. (some areas require that you hold the items a minimum of 30 days) The price of gold today is off by $28/ounce and we’re only half way through the day. As a result most purchasers are forced to hedge themselves against what gold will do in the next few weeks so they don’t take a loss on their puchase as well as making a profit at the same time. Because these are local laws they can vary widely from county to county giving some shops a competitive advantage over others and leading to wide ranges in the offered price to a consumer.
In addition, who the purchaser sells to can affect their offered price as well. As a result of the Patriot Act and a lot of the subsequent legislation involving transactions of high dollar amounts, pawnshops and jewelers have become restricted to a smaller pool of refiners and dealers that they in turn can sell the gold to after they purchase it from a consumer. Bear in mind that each middleman takes a small percentage of every purchase so that they can in turn stay in business (our average on gold trends to around 7%)
Finally, most people are unaware that a lot of old gold is actually underkarated. In the early 80′s the government set national standards in parts per thousand for gold content to be considered a minimum quality. Prior to that, many manufacturers would simply round their figures up. 13.5 karat rounds up to 14kt and so forth. After this period many manufactures began stamping their pieces 14KP which stood for 14 Karat Plum (NOT 14 karat plate as some people incorrectly assume) The plum stood for plum gold or gold slightly higher in karat than the legal minum (in parts per thousand the legal minimum for 14kt is 583 parts pure gold per thousand whereas 14kt plum is generally rounded up to 585 parts per thousand) the difference between 14kt and 14kp was so minimal that it was hardly recognized though manufacturers added it as a good faith measure to their customers. The point is that gold prior to this period costs the jewelery store or pawnshop more because they are paying their customer for 14kt gold but are actually getting 13.5 karat out of the refined product.

While all of this is good background information if you are interested in selling your gold or silver jewelry, nothing compares to having a jeweler that you know and trust. People have Doctors that they see regularly and wouldn’t think of going anywhere else because they trust inherently the doctor’s abilities and knowledge, I urge people to find a jeweler they are just as comfortable with. Most independent jewelers are better trained, more knowledgeable and more invested in the jewelry industry than most corporate stores out there. Find someone you trust and develop a relationship so that you don’t ever have to worry about whether or not you’ve been scammed

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avatar Bubbs

What is really hard to believe is that networks actually allow these commercials to air, knowing “Cash for Gold” is on the level with those Nigerian email money schemes. Scam business projecting itself as a reputable company, to people desperate to make ends meet at any cost. No way would I ever consider sending any gold to a company via mail. What if they claim they never received it? So while they pay below the fair market value to “customers”, they turn a tidy profit. If the networks wren’t so greedy for $$$ as well, they wouldn’t even consider letting those commercials air.

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avatar Idiots that use Cash4Gold

I GOT 4 DOLLARS FOR MY OLD KING TUTS CROWN! (ahem rip off)

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avatar TheLady

The scam is proven when you have just had a 24 carat gold bracelet appraised at $1500 by a legitimate jeweler, then are stupid enough to send it to one of these gold scam ads ony to be offered $75 for it.

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avatar Nathan

What Shawn said is exactly true. I own 3 “cash for gold” locations in malls, and while we pay considerably higher than Cash4Gold.com (and pay in cash on the spot), we don’t pay anywhere near melt value.

1) In my state, we have to hold the gold 30 days before selling it. A LOT can happen to market value in 30 days.

2) No one – not even if you send gold to a refinery – gets 100% melt value. Especially on 10 or 14 karat, which is primarily what we buy.

3) If we pay $500 for gold that turns out to be stolen, the gold is taken by the police and we will most likely never see our $500 back either.

4) Underkarating is a BIG problem – Shawn hit it on the head. The worst example I’ve seen is a class ring made by Josten’s, the largest “class ring” manufacturer out there, that completely failed a 10K acid test. By failed, I mean the acid dissolved the sample almost instantly. Discoloration would’ve meant that the piece was probably 8K; what this ring did indicated that it had virtually NO gold in it – yet it was stamped and sold as 10K gold.

5) I have employees, rent, insurance, and yes – a profit margin. I don’t buy gold for fun. This is a business, not a charity. All of you work for or even own companies that generate profit by buying low and selling high. Our business is no different.

6) There is no end to the gold plated pieces people bring us. We rarely buy “fake gold”, but when we do, it’s straight loss.

For these reasons and more, I (and no one in their right mind) am interested in paying even 50% melt value for your gold, unless you have quite a bit or I know you. For the scrap stuff we buy, I am happy (and almost all our customers are happy) with 40%. Cash4Gold.com sounds like they are paying between 10-15%.

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avatar Tony

Sorry guy, Your figure of 40% payout on spot karat price is Way Off.
Here , the honest jewelers are paying 85% to 90% for your old gold.
In August 2011 , gold is at $1800 an ounce.
14kt gold should have a payout of $45 to $47 per pennyweight,
not $21 per pennyweight ( at 40% Your Payout ).
I really wonder how happy the clients would be if they knew this info ?
Please do not ask where I sell , just ask a rep jeweler if they will pay this price.
Some of them will .

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avatar steve

No Jeweler in their right mind will pay 90% of spot for scrap. Only refiners can afford to do that because they keep the silver, copper and nickle the gold is alloyed with.

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avatar Nathan

By the way – you should trust “appraisal value” about as much as you should trust prices thrown out by auto dealerships.

Case in point – a jeweler I know (who also buys gold and diamonds) appraised an engagement set with an extraordinary diamond for $15,500. The guy tried to sell it to me for $3,000. After talking to her and two other jewelers who buy gold, I was advised that no diamond buyer would even be interested in paying 3k BACK to me for the set, much less anything NEAR 15.5k.

Appraisal value is about the most over inflated figure you can ever find. For gold, this is a formula to help you find the “market” value of your gold, though again, no one (not even a refiner) can or will give 100% market value.

10k: (market price per ounce) x .417 / 31.1 x (your gold’s weight in grams)
14k: (market price per ounce) x .583 / 31.1 x (your gold’s weight in grams)
18k: (market price per ounce) x .750 / 31.1 x (your gold’s weight in grams)
22k: (market price per ounce) x .916 / 31.1 x (your gold’s weight in grams)
24k: (market price per ounce) x .999 / 31.1 x (your gold’s weight in grams)

*market price is for 24k, available for immediate delivery, gold bullion. 24k is 99.99% pure. 10k is 41.7% pure, 14k is 58.3-58.5% pure, just to give you an idea. So an ounce of 10k is not worth nearly as much as an ounce of “fine” or 24k gold.

Believe any appraisal value you get for a strictly gold item that is higher than that, and you’re fooling yourself.

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avatar Shawn

Nathan,
While an appraisal is important to ascertain the value of an item, you must remember that there are different types of appraisals, each with different purposes, and each with different values. Now most people would say “how can you have different values applied to the same item?” Most appraisals are done as insurance replacement appraisals. These replacements are with an exact same identical item as the original. In some cases, this can be considerably higher than simply the value of the metal and stones used in the piece, as labor cost can be a huge determining factor. (a 5ct bracelet set with 500 .01ct diamonds has an ENORMOUS labor cost) often times, these types of bracelets are made overseas where the cost of labor is much lower, however, because they are insured and replaced here in the States, we have to factor in the cost of recreating the piece to our own standards. (often this is the case with jewelry bought over TV or internet, the appraised value is high because they are bought in massive quantities from manufacturers in India or China but would cost a fortune to create on an individual basis)

At issue here is the fact that the diamond market has dropped considerably in the past year when dealing with smaller, lower quality stones. Anything under 2cts has taken a nose dive in value because SO MANY people are selling them to make mortgage/credit card payments/living expenses which has overloaded the market with diamonds. On the contrary, high quality, large stones are selling at an all time high as wealthy investors are losing everything in the markets. (these are 10ct+ top quality diamonds for the most part) So I don’t find it surprising at all that you would see such a drastic drop in diamond prices. After all, you can move the gold that you purchase within 30 days and make your money back that you shelled out. Diamonds on the other hand, may sit for a year or more which means that that money is tied up until you can sell the stone.

As far as the appraisal is concerned, it is an unfortunate truth that there are some people out there who will overinflate the value of an appraisal because they believe that it makes an item easier for them to sell. This occurs in nearly every industry but because jewelry is a bit of an enigma to most consumers, they are often stuck taking the appraisal at face value. Just as in any major purchase, be sure to do the proper amount of research, if you are getting an appraisal, ask what the appraisers qualifications are. An answer like “I’ve been doing this 20 years” does NOT make them qualified to do appraisals. Check out http://www.Appraisers.org for the American Society of Appraisers website to get an idea of what to look for in an appraiser.

Also, while your formulas are technically correct when it comes to the gold value of a piece, you are not factoring in at all the artistic value or the labor value. These can each be quite expensive depending on the type of piece you are looking at. Also, don’t forget that any jewelry store has its own overhead to consider when selling any piece. Unfortunately, the lights, water, and paychecks of a store’s employees don’t simply pay themselves.

Hope this helps

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avatar Nathan

Agree that the secondhand diamond market is crap right now.

Anyway, the formulas I gave are for use on gold only (no stone) pieces, and are intended to help people determine what their gold is worth at close to melt value.

I maintain that appraisal values are pure garbage. And yes, expenses and labor costs are real factors, but unless a stoneless piece is absolutely extraordinary or unusual, the fact that it is “used” wipes out any value beyond the metal, IMO.

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avatar Shawn

In todays market where there are almost exclusively sellers and practically zero buyers ANYTHING used (jewelry, cars, 401k’s, houses even!) has seen such a dramatic drop that people’s perceptions of value from just 6 months ago have been completely upended.

In todays market the only value that is correct is what someone is willing to pay you for a particular item. However, keep in mind that a quick sale (i.e. cash in hand) will invariably lead to a lower sale price than if you have the time to properly shop/research the item.

And as I mentioned, there are certainly appraisers out there that I wouldn’t trust to place a value on a ball point pen. However there are also those who are fair, impartial, and professional, and until the average consumer insists on an appraiser who will properly value an item, nothing will change. After all, the insurance companies encourage the absurd values you mentioned. They charge higher premiums and they ALL have a clause which states that they can replace the item with an identical piece in lieu of a cash payment. With the insurance industry’s buying power this is almost always the cheaper option for them while they collect the premium on an inflated value on the piece being insured. Borderline criminal but then… look at what AIG did of the course of the past year.

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avatar Michelle Swan

Have you guys seen this? I’ve been following the company these days and this just came out

http://www.earthtimes.org/articles/show/cash4gold-provides-cash-for-the,948814.shtml

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avatar Noel Sanders

Author of this article: Cash4Gold

Category : Press Release

Nice try !!!!

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avatar Adolfo Avalos

Wow you just saved me a load of unneeded grief! There should be more people like you. Really appreciate your honesty.

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avatar emma kendall

I shopped around! and got a great price from the manchester Gold Company.Here in the uk ITV news has featured gold buyers. They recommend that you pick an established name What you mean like the above company? or what about the High Street chain, established for 100 years thyat pays £4 a gram Don’t make me laugh!!

Pick someone who comes to the house, who sorts out your gold in front of you into the various carats. and who weighs it so you can see the weight. Don’t go for the old rogues.

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avatar Dr. Rashmon

We have something here in Canada called Dollars 4 Gold being advertised on TV. Considering the economic situation and my field of work, I decided to get rid of some gold I was no longer really using.

I sent Dollars 4 Gold one of the items in my collection. It was a solid gold sarcophagus that once contained the body of the Egyptian queen Cleopatra. I wanted the money fast, so I opted for the quick deposit offer. After checking my bank account deposits, I noticed a deposit from Dollars 4 Gold for the sum of $379.75.

I was very upset and called to speak to a rep. At first they offered me $800, to which I said I was hoping for a bit more. The rep offered me $1200 and said that was the best they could do. $1200 for a solid gold sarcophagus? Are these people crazy? I told them I wanted my item to be returned, but the manager told me that there is currently a curse on the sarcophagus and no courier or shipping company will agree to ship it.

What can I do now?

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avatar George

Good one Dr. Rashmon!

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avatar GB

My Gold Envelope receives a D- rating from the Better Business Bureau. It is not BBB accredited, and it consistently misrepresents BBB affiliation. Please see the BBB website for details: http://www.seflorida.bbb.org/Business-Report/My-Gold-Envelope-92010460

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avatar GB

My Gold Envelope receives a D- rating from the Better Business Bureau. It is not BBB accredited, and it consistently misrepresents BBB affiliation. Please see the BBB website for details: http://www.seflorida.bbb.org/Business-Report/My…

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avatar Kristen

There is a company here in Canada called My Gold Envelope – it’s the same company not just similiar but the SAME.Beware of the same scam.

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avatar Anne Lisa

I sent into My Gold Envelope In Canada. I sent 12 herringbone chains, some heavy some light a few broken 10K and 14K, 2 old gold wedding rings marked 18K, a mix of 36 earrings 10k and 14K 2 pairs, 4 18K bangle braclets, 1 band with small old diamonds,marked 18K and one old ladies gold watch either 14k or 18k according to jeweler I showed. Then there were 12 gold coins that feel heavy and came with a certificate of being tested as at least 14K.

I received a cheque for $32.67!!! Sent the cheque back the same day and phone them to advise I want my items back please. I was then told I could get a new cheque sent for $74.22, I said NO. They offered $103.32 then telling me several items were not worth much…..I know that…but still it was all gold,,,,,of course some items are worth more than others….duhhhhhhhhhhhh…..she mentioned it was recorded in the system some items were broken so they would not be worth as much to them as they would be if not broken….I thought they were melting things down so why does THAT matter??? She then pointed out I clearly was not going to wear these items so why not just take the $$$? I insisted I wanted my items back. She said they needed to receive the cheque back first…of course…I know this…so I waited…..47 days now NO GOLD! NO CONTACT! EXCUSES WHEN I CALL! ONE PERSON SAID I CASHED THE CHEQUE-I DID NOT. ANOTHER SAID THEY DIDN’T SEE RECORD OF THE GOLD BEING SENT BACK SO THEY COULD CHECK AND CALL BACK….NOTHING! ANOTHER SAID THEY WOULD HAVE A MANAGER CALL ME….NOTHING…….I WROTE A CERT. LETTER…..SENT PHOTOS OF MY ITEMS…..NOTHING…….FINALLY ONE REP ON FRIDAY OFFERED ME $232.00 TO DROP THE WHOLE THING…..I SAID NO……..SHE SAID THE GOLD WOULD BE RETURNED TO ME…..HEY…..I WAS TOLD IT WAS SENT OVER 40 DAYS AGO…….NOPE…..SHE HAD IT RIGHT THERE AND WAS ABLE TO DESCRIBE EACH ITEM IN DETAIL…..CLEARLY IT’S A SCAM WHERE THEY HOLD YOUR GOLD TO BREAK YOU DOWN INTO ACCEPTING SOME OFFER FOR IT. I KNOW SUSPECT MY ITEMS ARE WORTH A GREAT DEAL MORE THAT I EVEN THOUGHT. I had hoped for about $700-900 as a pawn shop offered me $560.

I HAVE NOTHING. NO MONEY. NO GOLD.

MY GOLD ENVELOPE ARE LIARS AND THIEVES AND CHEATS!

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avatar AnneHaynes

First I loved this article and especially the original one where all the really bad stuff comes out about cash4gold. I’ve sold my scrap jewelry at a storefront and online. Guess what, I got taken advantage of on the storefront! So you can never be too careful.

I’ve been researching the “gold buying” industry and specifically online cash4gold like companies. There are only a few of the websites that actually publish their prices. I’ve only found two. So if you are looking to sell your gold online, check to make sure they publish prices. Also, make sure you talk to someone live before you send your package to make sure the company is legit. Confirm you will receive a payout amount “BEFORE” they process your gold and silver.

Be careful and do what I say above before you sell your gold or silver. Also, know the price of gold or silver when you call, so you can do the math on the phone.

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avatar Sherry

I was very unprepared when I went into sell my gold I went into a little shop where I had had good service before I had some rings and other things. As I read these posts I realized that he really ripped me off. I was given 227.00 without finding out the weight of each item. On top of that these are things my husband gave to me. He is deployed right now and when I told him what I did he was very upset with me, he said it made him feel like I didn’t love him anymore.What are my chancces of getting the jewelry returned to me. I dropped it off fri 3/12 in the afternoon and I am going to go and talk to him tomorrow morning to see if I can get it back. If I can’t do you have any suggestions on what I can do. I do know that he ripped me off for at least one necklace. It had a broken clasp and he said the clasp would be $30.00 and we could use the gold from my necklace to make the rings to solder on 2 charms however when I first talked to his jeweler he said it weighed 4gr. I am hoping that they will do the right thing and give it back to me so I don’t have any problems with my husbadn. It is bad enough that I sold the jewelry but it will be even worse when he finds out I was scammed. Hopefully someone can help me what I can do.

Thanks
Sherry

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avatar Shawn

Exactly HOW did you get scammed by the jeweler? He paid you for gold you brought him. Sounds reasonable to me. After all, he paid you for a broken bracelet, it’s not as though he can resell a broken bracelet to someone else. The fact that your husband is upset with you for selling the gold has nothing to do with the jeweler, nor does it have anything to do with the amount he paid you. It sounds as though you’re having regrets because you’re afraid your husband will be upset so are using the excuse that the jeweler ripped you off. If anything, it sounds as though the jeweler was trying to do you a favor by using some of your existing gold to repair your bracelet rather than charging you for something new. Next time, educate yourself BEFORE you go to a store, then you won’t have to whine about it after the fact.

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avatar Lori

Finally, the truth comes out. It’s sad really how many trusting citizens were ripped of by such a huge corporate company. Same goes to Wal-Mart and every other mega store. The mom and pop places are always honest and fair.

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avatar Tarri

This article is almost STEP BY STEP exactly what they did to me, right down to the “how much were you expecting?” and “hold while I talk to a supervisor” lol!

1) Sent me a pathetic check, then
2) TRIPLED the amount when I called, then
3) NEVER SENT THE OTHER CHECK, then
4) Now I’m told my gold is ALREADY MELTED!

I’m still trying to recoop my losses from these SCAMMERS. At this point all I can think is “WHY DID I DO SOMETHING SO STUPID?!?” Oh well, live & learn. NEVER AGAIN!

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avatar latasha gray

i never called cash for gold and they got my account off line when i apply for a loan and never got the loan or authorize anything they tried to get money out my bank .thank god they stopped it they need to go to jail scamming poor people.latasha 09/14/10

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avatar Dianne Clark

This is mainly to do with silver jewellry that we sent to two online places.We had a lot of silver and a few items of gold jewellery that were taking up space in our house. The silver was actually in display cases and each case had the identical silver items. We decided to just sell them for their silver value alone. We sent the first packet from one display case to Birks Gold and Silver Exchange. They returned a cheque, which was a little less than we thought it would be $110.40 – but still a fair amount (when you consider that they pay for the assaying, express post, and are after all in the market to make money). Their breakdown of the amount I received was as follows:

Items
Description
Metal
Sku
Weight (grams)
Price Date
Price/Gram
Total

1.
Earrings
1 pr earr
14kt
14kt gold / CGS
0.21
2010/03/29
$9.68
$2.03

2.
Earrings
1 pr earr
10kt
10kt gold / CGS
0.34
2010/03/29
$6.92
$2.35

3.
Others
7 neck, 2 bracelet, 4 bangles, 15 rings, 5 pr earr
SilverCGS
Silver / CGS
460.97
2010/03/29
$0.23
$106.02

The first dollar amount is the price per gram, the second is what they paid me.

I sent the exact same package of silver pieces in weight and actual items to dollars4gold and the jewellery pieces were as follows:
2 small 10K gold necklaces and 8 pairs of 10K gold earrings (all were small earrings), 15- .925 rings, 2 – .925 bracelets, 4 – .925 bangles, 5 pairs of .925 earrings, and 7 – .925 necklaces. (exactly the same silver pieces I sent to Birks Gold and Silver Exchange).

We weighed each silver pouch that we sent and both were identical. The cheque I received from dollars4gold was for $28.00 – which was a total insult to our intelligence. And when we called the their hotline, they also tried to tell us that we had sent them silver that was silverplated and/or less than the .925 that was stamped on each piece. We are now in the process of trying to get our package back from them and will be sending their cheque back either Fedex or eXpress Post. To get our jewellery back by expedited post we have to enclose a $10.00 money order.

Dollars4gold does not give you a breakdwown of what your items were valued at, but Birks does. We feel that dollars4gold is a total scam, and would be surprised to actually have our gold/silver returned to us.
We did eventually get our items back and will be taking them to a local coin/precious metal dealer.

Dianne

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avatar Lee

This scam is absolutely true, I sent in two 18K gold wedding bands and a 14k diamond tennis bracelet and received a check for $128.64, when I called to request my jewelry back they immediately double the amount. I declined their subsequent offers and waited over a month for my jewelry back. Don’t send anything to them. I ended up finding a place here in Florida that loaned me more money than cash4gold was going to give me. Avoid the scam.

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avatar Aaron R

There are plenty of sleezebag businesses that try to scam uneducated individuals out of their items or money. Everything from sweatshops that pay high school dropouts 15.00 per Dish Network/DirectTV sale; “Loan Modification Officers” aka. alternative education kids who fear people into refinancing their houses; and these people paying virtually nothing for your gold. Companies like this make money simply because it’s easy to pay off or dispute a lawsuit with their capitol and still be extremely profitable. These companies treat their “sales” employees as terribly as they treat their customers mostly because the agents don’t have marketable life skills.

Reselling/making money of other people and/or playing the middle man is nothing new. The best thing you can do is advocate your power of consumerism and let everyone you know not to use the service. In our current time, with one-to-many responses, recounting your personal experience or the experience of a friend on a social platform is the most powerful tool.

Either that or just drop some dried dog turd in their envelope and label it as “Gold.”

-Aaron.

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avatar Jes

This article was helpful. I wanted to share another type of scam, but it’s partly my own fault. I did not research the penny-weight of gold, and I sold my gold for only 40% of the spot price last week. I went to a local business in my city that advertised that they paid the most for used gold. I also could not see the scale where they were weighing the gold and took their word for it. I was paid in cash and at the time thought it was great until I got home and figured out just how much 49 penny weights of 14k gold was worth. I would advise anyone selling gold to take the gold or a sample amount of it to 3 different places before agreeing to a price. I have called and emailed other places to ask how much of a percentage of the spot price they are paying, and have found out that they won’t tell me. I think they pay more to those in the know, and less to those who don’t know what they are doing.

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avatar SCAM4GOLD

If this doesnt give proof that these companies are unprofessional and taking advantage, then nothing will

http://www.youtube.com/watch?v=aWJ4fK75vPI&

If the above Cash for Gold television advert was shown over here in the uk, the company would probably have been forced to stop stealing immediately… sorry, I meant “trading”… as much as the people in this advert seem completely GENUINE, something just doesnt feel right! LOL

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avatar JERRY

FOR THOSE OF YOU WHO HAVE BEEN HUSTLED BY CASH FOR GOLD, I WILL BUY YOUR GOLD, SILVER AND PLATINUM ITEMS AND PAY YOU 20% OVER WHAT THEY OFFER YOU!! THATS A GOOD DEAL, WHO COULD TURN DOWN PROFITS LIKE THAT? THESE PEOPLE ARE SORRY INDIVIDUALS FOR TAKING ADVANTAGE OF SOMEONE WHILE THEY ARE DOWN AND I REALLY HOPE THE GOVERNMENT WILL STEP IN VERY SOON AND SHUT THEM DOWN, BUT THIS IS AMERICA SO THEY WILL PROBABLY DO NOTHING TO THEM. IF ANYTHING THEY WILL GET A CHECK FROM THE U.S. TREASURY!!!

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avatar Henry Smythe

Just make sure you don’t use a company calling itself the British Gold Refinery. The company is a scam. My jewellery was sent over two months ago and I will never see it again. My calls go unanswered. It is fraud, plain and simple.

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avatar Ejpro

I have an 8.2 gram 14 ct band that has lost it,s sentimental value. The current gold value is $411. After visiting 3 we buy gold crooks and 2 very high end jewelry stores the best offer for the ring was $130.00…….what a bunch of crooks that they are!

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avatar JERRY

actually the current value of 8 grams 14k is closer to $240. but what they offered you is still way low and not enough to accept.

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avatar JERRY

remember 14k is not pure. if it had been 24k the value would be over 400.

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avatar Ed

Missed that in the conversion!
Thanks

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avatar Agio

It’s good to see someone point out the hustle many of these on-line/TV ads are perpetrating but at the same time it’s hard for me to have sympathy for folks who can’t be bothered to do a little research. I’ve owned a coin store for many yars and we but a lot of scrap and pure gold and for any interested I’ll give you some facts and tips.
1. Pawn shops and jewelers are not the place to get the best price for scrap gold as many are advocating here here. Nor are payday loan co’s. This is just commonsense. These places deal with those strapped for cash so they aren’t going to pay top dollar.
2 Don’t buy precious metals from ads on TV or sell your scrap precious metals to people who advertise on TV. Also avoid the ‘travelling gold road shows’ that are advertiused every weekend. Brutal pricing. Look online or in a phone book and go see a coin dealer. Oft times you’ll get a better price by just walking in BUT, know in advance what you have. Even if it’s marked reputable dealers will test it because if it’s plated, the dealer is screwed.
3. Coin dealers do NOT deal in penny wieght crap, we deal in grams. There are 31.1 grams in one troy ounce.
4. There are two ways used to calculate the price for scrap gold of any carat. Given we only get paid for the actual gold in scrap jewelry expect to lose about a point. IE 10k is .416 purity, usually calculated at .406.
5. Dealers have expenses so you cannot expect to get full melt, dealers don’t even get full melt from refiners. It’s a business so everyone has to make money.
6. Example of a 10k item. You have a piece that weighs 5 grams. Spot gold is trading at 1700 an oz. 1700 x .406= 690.20. 690.2 divided by 31.1 = 22.19 per gram. This is the FULL retail price of the gold. Now depending on the amount you have and the store you will get anywhere between 80-85% of this figure. Some pay 70-75%. Your job to get the best price, not ours. At 80-85%, approximately 17.75-18.86 per gram. So your 5 gram 10k ring should fetch you around 88.75.
7. For 14k & 18k a good approximation tool is to take the 10k price per gram that you are getting and in the case of 14k multiply it by 1.4. 17.74 x 1.4=24.85 per gram. 18k-17.75 x 1.8=31.95 per gram.
Prices will vary but hopefully this gives a basic idea of HOW to sell your scrap gold.

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avatar scott

I agree, its sad that so many customers do not want to compare pricing-they want to be able to get it get it over and done with, ie receive the money for their gold and fast. Questioning some that have used such cash4gold services, unfortunately one belief is still there – as they are at the forefront for advertising on mainstream television on the subject (and possibly also one of the biggest for internet advertising on related websites), almost everyone thought cash4gold would know best and give them the greatest deal compared to independent stores, despite no comparison. Mainstream advertising gives out a great level of trust

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