How To Avoid Getting Ripped Off By Cash4Gold
UPDATE: Cash4Gold Offers Blogger $3,000 To Remove Negative Post
Rob at Cockeyed.com saw a late night commercial for Cash4Gold ("Sell your jewelry NOW!"), so he decided to test their service. His friend Brent gathered up some scrap gold and first had it appraised at a local pawn shop. Then, armed with a baseline of what to expect, he mailed it in to Cash4Gold. Their offer: $60, or one third of the appraised value. When he called and rejected it, they countered with a surprising new figure.
Brent called Cash4Gold and immediately and asked for his stuff back. They made a new offer on the phone: $178!
Can you imagine? They covered their smell a little by suggesting that they could manipulate the numbers on their end so that it would look as though he sent in more than he had....suggesting that they were doing HIM a favor by upping his offer to this new, more attractive number.
The two things to remember if you send in your gold to Cash4Gold:
- Get your gold appraised first so you know what's fair, and reject any unreasonably low offer over the phone so that they have the option of making a counter offer;
- Do not use their "FAST CASH" option, which offers a direct deposit into your bank account, but forces you to accept their first offer. You will almost certainly be paid a fraction of what your gold is worth.
"Cash4Gold Will Offer One-Third of the Actual Value for your Gold " [Cockeyed.com] (Thanks to Michael!)
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Comments:
But would the pawn shop have offered him $180 cash for the gold?
::takes notes for unwanted jewelry from an ex....::
This is a surprise?
Yeah, If you didn't know they were going to rip you about 60-70% of the value of your gold in exchange for their "free" envelope, then you were ripe to be plucked. All you can do to top that is go take some roofies and sleep them off in a frat house.
But it's good to know that not only did someone check it out, but discovered that playing hardball with them made a huge difference. I have no kudos to offer cockeyed.com, but instead I offer some legos, which I assume are similar.
You mean to tell me that a late night commercial would not be what it says to be? Outragious. At least the internet is truthful.
So, random question. Who else, from only glancing at the headline, though this article was going to be about World of Warcraft?
I never understood why people would use this service! I can't believe that people would send all of their valuables in the mail to some P.O. box.
Most jewelers will give you .50 on the dollar for your scrap gold. Then they turn around and sell it to Kitco for 95% of the price. Anyone can sell their gold to Kitco instead of these vultures.
How to avoid getting ripped off by Cash4gold: avoid them. Much better to just hold on to your gold and sell your first born or an organ. I hear livers go for a lot on the black market.
I think this follows a theory that seems applicable to anything seen on late night television. Much like the late night lawyer advertising his services..
"Wow, he has lots of legal looking books behind him! He must be good!"
Counters' Axiom: Any business with a number in its name substituting for a real word is a scam.
Yeah well you know, any company that utilizes numbers in its name to replace words always has my "ghetto vote of confidence." That as seen on TV stamp just adds to it.
I've seen these commercials. Does anyone else have any gold scraps lying around? What is a gold scrap anyway.
Man, I miss Robs site. He used to do these great "How Much Inside" things, great stuff...hasn't updated in a while though :(
As freakin' always, buyer beware. I'd rather go to a pawn shop that sells scrap gold then send it away to have it 'appraised.' Hell, one pawn shop I've used took it, looked at it, weighed it, tested it and the guy said "The value of this is about $xxx.xx. I'll give you $yyy.yy" which was exactly half of the value he could get for it, selling it to a metals dealer as scrap.
On the subject of selling gold, how does one go about selling a diamond?
My cousin's wedding ring was bought for 6k, she has all the certifications from it, but noone locally will give her more than 500 bucks for it. If I understand diamonds correctly, and I think I do, a diamond is a diamond, so how do I help her get out of it at least some of that money?
I see on Kitco's site: "Please note: Kitco's Refining Department purchases unrecognized bars and coins from private clients, however we do not buy scrap material from individuals." I am looking to sell scrap silver, is there anyplace else that is reliable and useful? Pawn shop?
Sadly, it's a myth that diamonds are "investments" and that anyone would ever pay nearly as much as for it than you paid for it, much less likely more than you paid for it. All the certificates and other stuff are only useful for insurance purposes and bragging rights. I never got the whole diamond thing, I'd rather wear a CZ and drive a nicer car. Who's going to know anyway?
Yeah, I've heard diamonds aren't a good investment.
When I bought my wife her engagement ring, I talked to the local gemologist who put it together. In order for him to buy from DeBeers directly, he needs to buy a certain amount of diamonds each month, which he obviously has to sell to stay in business.
Therefore, he and others like him aren't to interested in paying full value for diamonds not from DeBeers...It just means they have another thing to move. At least that was my take on why diamonds don't retain much monetary value.
@RamV10: First, has someone looked at it to make sure it still has the real stone?
In any case, selling it yourself via craigslist of ebay will net you far more money than selling it to a shop.
If its a solitaire (where the ring itself is worth almost nothing) you may do better selling the diamond loose and scrapping the ring.
Rule: Anyone who buys time for "a late night commercial" is going to either be expensive or low-ball you because they will have a huge advertising budget to stay on TV. Doesn't really matter what it is.
@RamV10: this is why the DeBeers cartel sucks. There is no after market for diamonds. Best thing would probably try to sell it on ebay imo.
@DemolitionMan: I'm also glad to see his name back in lights. I was a fan of his site for a really long time and actually ended up moving to Sacramento for a while. While I was there I thought "I wonder if I'll meet Rob Cockerham?" and even though it was foolish to expect in a city so large, I did end up selling him a bagel from the Noah's NY Bagels I was working at. I was like "Hey, Rob Cockerham! Love the site" and he was like "aw, thanks." He seemed pretty bewildered, to be honest.
@laserjobs: wow I havent used pricewatch since back in the day when all they did was computer parts. No idea they did jewelry now.
@Geekybiker: yeah she had it certified through a local place, and when it was done they offered her 1200 bucks for it...she didn't take it, hoping she could get more elsewhere. She didn't do well anywhere else and went back, and they rescinded their previous offer and offered her 350.
asshats.
I don't see how this is a rip off. You send in something, they make an offer. You are free to accept it or not, or to attempt to negotiate. How is this different from any other consumer transaction?
No one is obligated to give you the price per ounce you see on the evening news.
@Canino: This is typical. When a consumer makes a low ball offer, it's a smart negotiating tactic. When a corporation makes a low ball offer, it's an evil scam. It's not like the price of gold is a state secret.
Just wanted to make sure everyone's reading the first half of this: [www.cockeyed.com]
Cash4Gold first sent Rob a check for gold, even when he'd just sent them random things spray painted gold.
Here's another where Rob tests whether a torn up credit application is still good:
[www.cockeyed.com]
A pawn shop is good at evaluating items. A pawn shop is never going to give you full value for your items. They will give you a fraction of that as a loan. When you repay the loan plus the pawn fee, you regain your item. If you forego repayment, you lose the item to the pawn shop, and they will sell it and claim a profit.
Selling your old gold items is completely negotiable. The fact that the merchant is low-balling the seller is completely expected. Neogotiation is required in order for the seller to maximize income from any sale. The problem lies in people having too much trust, and they think it's "fast and easy".
@PipeRifle: Maybe more freaked out that the bagel you gave him has some sort of mystical identity revealing powers.
Clark Kent should stay the hell away from your bagels...
I've always wondered what kind of person sends something valuable (like real gold,not spray painted) to a company in a faraway place with just the vague promise to pay you something,sometime...Later.
These people probably play high stakes poker over the phone...
@RamV10: Diamonds are a scam in general. They have little resale value as the primary market for them is first sale engagement rings. No one wants someone else failed engagement/marriage ring. The only ones after a used ring are those who can't afford a new one and they won't be able to spend 6k. The lack of demand in the resale market and the lack of cash int hat market means resale prices are very low. ebay and craigslist have markets for it but it's not a huge amount either.
crazy. i always see the commercials and wonder about it. but i dont have any gold laying around. or gold spray paint.
@kingmanic: Think of it this way: Diamonds are supposedly expensived because of their rarity in the gem world, but go to a jewelry store and dang if diamonds don't outnumber all other stones combined by a vast majority. Anything below a full carat, and nearly flawless and colorless are ripoffs at retail.
@yikz: Fifty bucks? No, no, no. This is a Rouchefoucauld. The thinnest water-resistant watch in the world. Singularly unique, sculptured in design, hand-crafted in Switzerland, and water resistant to three atmospheres. This is *the* sports watch of the '80s. Six thousand, nine hundred and fifty five dollars retail! Look, it tells time simultaneously in Monte Carlo, Beverly Hills, London, Paris, Rome, and Gstaad.
Pawnbroker: In Philadelphia, it's worth 50 bucks.
Louis Winthorpe III: Just give me the money. [looking in display case] How much for the gun?
My dad uses a local jeweler for all his purchases: Dean's Jewelers in Montgomery, AL. The guy makes the stuff and sells it, it's always TOP quality, and they are wonderful to deal with, even AFTER the sale is made.
Forget DeBeers, use your local craftsman. If you can find one. They're much better than the canned jewelery stores.
I thought about cashing is some old gold stuff I had. I went to 4 or 5 places. Offers ranged from $650 to $435. GET SEVERAL APPRAISALS!
@jedthehumanoid: "scrap gold" is any gold item that is damaged, unattractive, whatever. I t can be melted down into ingots or made into new jewelry.
@John: I just bought one of those for my fiancee. I have no illusions that the whole thing itself has no resale value but it has value in other ways. It's something she enjoys wearing and looking at, it's something that makes her feel special, and it's something that says I'm willing to spend a couple months pay on something pretty for you so I must be pretty dedicated. Other then that I have no expectations of it.
Diamonds themselves aren't' a very rare stone in nature. It's a fairly common stone. Sapphires, Emeralds, and rubies are all rarer. Diamonds have been valued simply because of the monopoly behind it and the cultural inertia is gained in the last 100 years. Every year DeBeers mines enough diamonds to last a decade. They've been doing this for a long time and simply warehousing the excess. I bought a Canadian diamond to circumnavigate DeBeers and since I'm in Canada it wasn't any more expensive. But again, it has no value except the emotional value we've now placed on it.
I decided on an important business principle when I was young; If a business couldn't afford to spell out or properly punctuate their own name, I probably shouldn't do business with them. Your "Shop-Rite"s, your "EZ-Loan"s, whatever. They're either skeezy, or full of cheap shite made in S.E. Asia.
@rpm773: Well, and the simple fact is that it will almost never need to be cashed in. Hundreds of years ago, jewelery was a great way to carry portable wealth. Not so much any more.Unless you REALLY get into trouble, your wife will NEVER let it go.
Exception - Tiffany & Co. Their jewelery maintains value very well, and I believe they offer a trade in program...
Late night advertising is funny. I decided to Google several ads and was amused at all the comments on the rip off sites about all of them. Makes me wonder how they continue to run ads. Wow.
How about those silly structured settlement ads? Do they pay up to 50% of the settlement or much less?
Wow, what a rip! I wondered how a service like this worked. Wonder what happens if you cancel the entire thing...do they send it back or do they charge you to return it?