Cash for Gold

Recently I have noticed a sudden rush of gold buying companies. I have personally recieved 2 flyers in the post, and seen at least 2 different adverts on TV, advertising cash paid for gold and jewellery.
This seems strange to me in light of the current financial crisis. If the economy collapsed completely, would gold and other precious materials replace our paper currency?
Also, where are these companies getting the funds to purchase endless amounts of gold and jewellery from the public? Is it government funded? If so that could lead to some more interesting theories as to why suddenly there is a huge demand for gold.

I get the biggest kick out of these ads.
I'll send you a box! Put all your gold in it and send it to me and I'll send you some money!

That's the way I want to treat my valuable metals. LOL

This is going to emerge as a scam, I'm positive.

I have also received an unsolicited piece of mail, complete with a Royal Mail secure envelope to return my gold for them to 'evaluate the cost'
They are currently evaluating a handful of rubble from my garden. To be honest, it may contain gold, if the builder or gardner dropped something in it.

A local news service recently investigated one of these gold buyers. They bought identical rings and sent one in to the gold purchaser and took one to a pawn shop. The pawn shop offered them close to market value for the gold. The gold purchaser offered them around 20% of it's value.

I'd pay someone 20 cents for a dollars worth of Gold any day. It's a good scam.

I've noticed a surge in these adverts aswell. I reckon a few people are getting the show on incase money falls through. They're stocking up on gold, as maybe we'll be using it as currency soon, and they want a head start in being rich in the "next phase". (what ever that is)

We just had one come through the door last week - but this one was inviting people to bring anything gold/silver along to a local hall for one of a few open days they have booked.

They did actually print some prices they would offer - I tossed the leaflet so I can't quote them but the range was huge! Plenty of wriggle room... They wanted all the usual stuff, broken chains, damaged jewellery etc.

I'm thinking they will pay rock bottom for the base metals and hope that they get a few 'gems' thrown in by accident.

The open day idea is quite a good one, get some old ladies bringing along their odds and ends, a few professional looking jeweller types, free tea and biscuits and of course a couple of shills in the crowd.

edit; actually found the leaflet in the waste paper... I'l quote from it.

Gold:

we pay:
9ct. up to £140 tr oz.
15ct. up to £180 tr oz.
18ct. up to £280 tr oz.
22ct. up to £350 tr oz.

(note the magic use of the universal 'up to')

Then it goes on about war medals (pre 1930 up to £300 each) Pre 1947 silver coins Min 6 times face value ( 6 x's 1947 face value!?! that can't be all that much) and other things like gold watches in any condition yadda yadda.


[edit on 2/7/2009 by Now_Then]

Consider this aspect. Any thief can steal gold and put it into an envelope and sell it to these scam companies. A pawn shop could be tracked down and good recovered but these gold buying companies melt down the stuff almost as soon as they get it.

My wifes family have had experience with this and They changed their mind with in the same week but they were told that it was already too late and that the gold had already been melted.


I think, since the thieves can easily use this method to get away with their crimes their ought to be some new laws put into place requiring them to hold onto the gold just incase cops need to investigate crimes or in case the consumer changes their mind... OR just in case a family member accidentally sells an heirloom.

Interesting I find this because my dad just sent in a gold tooth and ring and got back like $115. He might have not got the full value but they were just sitting around looking dull otherwise and he got some money to help out with bills. I don't remember the company he sent it in to but they did send him a check back.

Obviously one of these things isn't a entire scam since he got some money.

reply to post by AllseeingEYE


The U.S. currency is going to be worthless in a couple of years and by a couple I mean at least 100. Once the U.S. currency is worthless, how are we going to buy and live? We are going to end up turning to gold because gold is not only an important source of value but an important element. Whoever owns the most gold in that time will be the richest. Who are going to be them? Cash 4 Gold. It's like they know and want to start preparing. Maybe we'll live to see that day if we want or maybe we won't. I'm just saying my opinion.

The fact that you notice it, like the rest of us, is the red flag. These 'firms' give the worst prices, and they are there for one reason only, and that is to screw you out of proper value for your gold. They are like a computer driven stock transaction, as soon as a certain pre-defined set of limits and conditions is reached between the price of gold, the current market trend, and the public need for cash, these idiots come out of the woodwork because they have a calculated risk/reward that is in their favor for winning the game of low-balling you for your scrap gold.

Avoid them like the plague. If you want to cash in your stash, see a legitimate jeweler in your town, with scruples. You will get the best deal from them if you want to unload old gold items.