Can those “we’ll buy your gold!” ads be believed?
With the price of gold hovering around $1,100, ads trumpeting promises of quick dollars in exchange for bits of old gold jewelery have become a staple on late-night television.
Companies like Broken Gold and Cash4Gold invite viewers to send their unwanted gold along. In return, the ads say, they’ll provide you with a quick appraisal of the value of the items on offer and then send you a cheque in a matter of days.
Good deal? Of course not, say Consumer Reports.
The magazine’s mystery shoppers sent identical items to three such gold buyers last year, matching them up with a selection of jewelery stores and pawn shops across the U.S. The cash-for-gold companies paid 11 to 29% of the day's market price for gold; the other venues, about 35 to 70%, CR maintains.
You’ll do way better by going local, claims Matthew MacQuarrie, president of Recycle Frog, an Ottawa-based company that’s trying to take the gold-for-cash business out of the realm of TV hucksters and pawnbrokers and into local homes.
Recycle Frog, which makes house calls and gets customers to witness the entire transaction, claims to offer its clients roughly 70% of the appraised value, some of which has been finding its way into the coffers of local charities.
Recycle Frog recently partnered with Ottawa's Christmas Exchange during a recent fundraising drive, giving a portion of both its profit and the customer’s payout to the cause. On a $100 item the owner would see $65 and the charity $10, with the company keeping the rest.
Seems fair.
Have you turned any gold into cash? Did you go local? Did you strike a good deal?
By Gordon Powers, MSN Money
Posted by: bigted | Feb 27, 2022 1:46:16 PM
You have to figure that any company that can afford to litter the TV with as many ads as these businesses have done, does it because they are making a pile of money from it. Businesses are there to make money and they would have to make a lot to offset the cost of advertising. Therefore they cannot possibly be paying TOP DOLLAR and paying for these ads at the same time. It is just not possible. This isn't even factoring in the postage costs as well.
Posted by: Bonaventure | Feb 27, 2022 2:32:08 PM
Seen this before. The last time Gold was at all time highs in the early 80's I worked for a company that went around the country ( western Canada) doing shows and buying up old jewelry and gold.
Some of the jewelry were antique quality but most of it was purchased by weight. The gold was melted down.
Guess what happened to the economy, Gold, housing and the company within 2 years? Yes, every thing declined, recession and the company went out of business.
Buying Gold jewelry for its weight and offering nothing for its design etc is the best example of peak Gold prices.
Been there, seen it all. Just a matter of time before Gold prices decline. I would not be surprised to see Gold at $ 350 again( yes I am making a bold statement), will take a few years 2 - 5 years, but we will see lower Gold prices.
In 2008 when Oil was at $ 120 no one believed my call of $ 45 a barrel. Currently Oil is $ 78, and again I would not be surprised to see Oil below $ 50 within the next 1Year.
History repeating itself.
US new home sales hit an all time low in 2009, despite the increase in population over the last 50 years.
More potential home buyers but yet New homes sales hit an all time low.
Are we there yet? Not yet but getting real close.
http://arewethereyetbd.blogspot.com/
Posted by: reply_to_bovanture | Feb 27, 2022 3:13:47 PM
the sky is falling!!!!!
the sky is falling!!!!!
the sky is falling!!!!!
the sky is falling!!!!!
take some economics course before you post again please.
Posted by: Johnny Two-Shoes | Feb 27, 2022 3:43:06 PM
In the last 15 years or so, the price of gas, which is closely related to the price of oil, has gone up say seven or eight cents a liter, then dropped three to four cents a liter. I remember filling up my dad's truck at $0.70/liter in the late '90s and now it is costing me $1.07/liter. I will admit, though, that the price of gas will eventually hit such a high that major shipping companies will strike against oil companies to a point that they will have no choice but to drop prices to current prices.
Posted by: grannyone | Feb 27, 2022 7:30:48 PM
they dont pay you market price for the gold, none of the commercials make that claim. they just tell you to send in your stuff, they decide the price and maill you a cheque. probably 5 -- 10% of the actual price of gold that day. No different than a pawnbroker offering you the same deal.
Posted by: s napora | Feb 28, 2022 12:40:54 AM
what a scam!!...tearing people of anything valuable!....just what the upper powers of govn`t want...
Posted by: bg | Feb 28, 2022 3:58:27 AM
i have been trying to sell an engagement ring valued at $1700, but the largest offer i could find from a 'reputable' jeweller was $220, and pawnshops offer 10%. It`s rediculous trying to get money for gold. everyone is trying to sell their old jewellery, but i`m not going to be scammed.
Posted by: rog1122337 | Feb 28, 2022 11:00:39 AM
I dont mind taking a loss and but like 20% Ya I havent been as yet but thinking about it ... I will go too the ones in my area just to see what I can get.... As far as mailing no way......I guess some people have no choice in the matter. Its too bad that other people dont care... Even with 20% they still making a profit...What is that greed??
Posted by: Daniel | Mar 3, 2022 8:50:36 AM
What I think people keep forgetting is that this is a service, similar to a dentist, mechanic or electrician. There is a cost for offering that service. If you look at Recycle Frog's website you'll see that they clearly describe what their 'cost of goods sold' is. They make about 8-10% on every transaction, after all their overhead is factored in. That's pretty reasonable, in my humble opinion.
The fact that they have brought new transparity and very competitive customer payouts to this industry should be commended. There are not many companies out there doing what they do - that is, work with charitable organizations like CHEO, the United Way, Canadian Cancer Assoc., etc... to raise money in support of their important community work.
The bottom line is - shop around. Not all companies are created equal. Recycle Frog is going to great lengths to prove they are head and shoulders above their competition. I like the fact that they are talking about the environmental impact of recycling gold and silver (is there anyone else out there that even thought to bring this to our attention?) ; I like the fact that they're working with charitable organizations ; and most of all, I like the fact that they pay at the top end and have PricewaterhouseCoopers doing independant payout verifications. Can you think of anyone else doing all these things?
Either way... do your due diligence before doing anything. Just as you would for that mechanic or electrician. Then when you're ready... pick the company you think will provide the best possible service. Maybe that will be Recycle Frog...
Posted by: The informer | Mar 4, 2022 2:17:52 AM
Keep ur gold or you will regret it, Not now but in 2 years you will
Posted by: Mike | Mar 4, 2022 12:22:58 PM
If they take these ads off the air, how are thieves supposed to remember where they are supposed to go to fence their stolen goodies? Especially when they are high...or worse...crashing?
Ever since the first time I saw a "Russell Oliver" "We buy your GOLD!!" (for 35 cents on the dollar) ad, I always picture some thug sitting on his couch & planning his next break-in, knowing where he can go to unload it...for 35 cents on the dollar.