Cash4gold....beware, read this first! (2009, companies, make money, financial)

[bentlebee]

(ATTN: Financial editors)

But Cash4Gold's jewelry exchange doesn't always translate into big bucks for its customers, who have lodged hundreds of complaints with the Better Business Bureau and the Florida attorney general's office, saying the company short-changed them.

In one, New York resident Frank Poindexter complained that "he mailed in $150-$200 worth of gold," but "all he got back was a check for 15 cents."

Thomas Valle of Colorado said Cash4Gold sent him $16.61 for gold and diamonds he believed were worth $300. Unsatisfied, Valle requested the prompt return of his jewelry, as per Cash4Gold's terms.

"They have not done that, and it has been a month," he reported.
Cash4Gold Chief Executive Jeff Aronson said that those two complaints had been resolved and that the company stands by its satisfaction guarantee.

.....

An investigation conducted by the CBS program "Inside Edition" sent the company 23 pieces of gold that a jewelry expert had valued at close to $1,000. Cash4Gold sent a check for $209.81, a quote at which the expert scoffed.

These are a few pieces I took out of the entire article which you can read if you click on the link!

This company managed to have an add during the Superbowl!

[StoneOne]

Anyone who puts gold in the mail is an idiot who deserves to be scammed.

Honestly, how stupid are people?

[jenn76]

But isn't it unethical then to run these comercials, when it's an obvious scam?!

[evilnewbie]

Unethical like all those infomercials? Until we hold networks LIABLE for their ads... these scams will persist... its amazing what you can get away with... its also amazing how much people have "TV knowledge" instead of factual knowledge.... I knew that cash for gold was a scam with their first commercial.. I didn't think any idiot would fall for it... but one is born every minute, you know...

[bentlebee]

Originally Posted by evilnewbie

Unethical like all those infomercials? Until we hold networks LIABLE for their ads... these scams will persist... its amazing what you can get away with... its also amazing how much people have "TV knowledge" instead of factual knowledge.... I knew that cash for gold was a scam with their first commercial.. I didn't think any idiot would fall for it... but one is born every minute, you know...

I try to give you a rep. point...but it wouldn't let me...I agree with you that networks should be held accountable to a certain degree...When an add first runs, maybe not many people have heard of the company but now after so many complains...the networks shouldn't run the adds anymore.

[jenn76]

Originally Posted by bentlebee

I try to give you a rep. point...but it wouldn't let me...I agree with you that networks should be held accountable to a certain degree...When an add first runs, maybe not many people have heard of the company but now after so many complains...the networks shouldn't run the adds anymore.

Exactly!
Remember all those Countrywide commercials they used to run, there was one constantly, on every channel! Their line: "No one can do what Countrywide can..." No kidding

[IonRedline08]

Is it really a scam though?

It seems more like a mail order pawn shop.

They should have done a bit more research, and possibly sold it themselves.

[ZugZub]

Originally Posted by bentlebee

An investigation conducted by the CBS program "Inside Edition" sent the company 23 pieces of gold that a jewelry expert had valued at close to $1,000. Cash4Gold sent a check for $209.81, a quote at which the expert scoffed.

All right, I'm not saying this company is reputable, but do you people have any idea how this works?? Just because some expert valued your jewelry at $1000 does not mean that it is worth that on the market. These companies are scrapping/refining companies, they don't resell your jewelry on the retail market. They take it, assay it for gold content, and then they melt it down and refine the pure gold out of it.

Let's say you have a 14k gold ring that you bought for $500. You can't send that ring in and expect to get $500 for it, that's ridiculous. First of all, these companies are paying SCRAP VALUES, not retail sales values. That means, if your 14k ring weighs 10 grams, it contains 5.84 grams of pure gold. If the gold market is $800 for that day, each gram of gold is worth about $25.72. That means this ring's BASE value is about $150.

From that, the company will take assay charges (a necessity to determine whether or not you really sent them gold) and they will take refining charges -- which are basically their profits. You might come away with $100 for that ring after they take their cut. Robbery, you say? No, you just have to know what's going on, and how this kind of business is run, and find a reputable one. Because there are reputable refinining houses out there that will take your scrap and give you an appropriate price for it.

[marmac]

Everytime I see that ad, I am tempted to call the phone #, get my packet, and fill it with used rusty nails and mail it in.

[sheenie2000]

One thing is, why would someone send their gold to a random address? You don't know where it's going and whether it's legit. At least people even got a check from the company. Just because a person says what they sent was worth 500 bucks doesn't make it so. I mean were they hoping and praying to get 500 dollars?

Obviously these companies are in business for themselves and to make money. They aren't there to help YOU! People need to wake up.

Why are people still falling for tv ads? And if you still are, stop complaining after the fact for your own stupidity.