We've all seen the ads running constantly on bad late-night TV that promise you can turn your unloved gold jewelry into cash.
The Los Angeles Times recently ran a piece on Cash4Gold.com -- one of the most popular of these outfits that make such promises. The newspaper found that the amount of money you get is pitiful compared to the jewelry's worth. In one instance, a man sent in $150 worth of gold and got a check back for 15 cents!
The club sells off the contract to a finance company that will take the paper on and pay them pennies on the dollar. That creates additional incentive for the club to sign up more members -- and hope none of them ever show up and all try to exercise at once!
Cash4Gold.com isn't the only company running such an operation. Others include Dollars4Gold, GoldKit and GoldPaq, according to the newspaper.
In a separate investigation, Inside Edition had a jewelry expert grade the value of the raw material in 23 samples before sending them off. The assessment came in at nearly $1,000…and Cash4Gold sent a check for $209.81 -- roughly 20 cents on the dollar!
It's like the Midas touch in reverse.
Be particularly wary of turning to an "insta-answer" option like selling your old jewelry online when you're feeling desperate. Payday loans and early tax refund loans also fall into the "insta-answer" category.
The truth is that a piece of jewelry is never worth what you originally paid. Part of what you buy is a sentimental attachment. Remember that jewelry is not an investment…unless it's an investment in the heart.
| This article was posted on Wednesday, January 28, 2009 at 3:15 pm and The Consumerwatchdog is solely responsible for its content . You may leave a comment or post a reply. |
Linda Cincinnati says: Why would anyone send off valuables in the mail? That's dumber than leaving car items in view for crooks. |
Debbie From California says: Huh? Bally has been great! I have been a "member" for 7 yrs. and appreciate having a club nearby. Yes, I can walk / run, do squats in my living room, all on my own, but I get tired of the same 4 walls. I tried the home gym setup, and miss the "people" and the opportunity to meet others in my community. Bally is no different than any other subscription gym. |
Michael says: I took my stuff to the Valley Gold Mine in Arizona after mailing it in. They offered me $750 when Cash4Gold offered me $165.82 for everything. I was very happy with the outcome - do not mail your gold. Go to a reputable jeweler in your area. |
anonymous says: I have heard that people are having gold partied where some one will come and buy. My neighbor said she went to a praty and came home with almost $800.00. |
de dawson says: send me your car truck or boat title and i will send you cash the next day. (the small print) it must work and drive or you will be charged to make the repairs and i still get the car truck or boat. i am joking but did you beleive this crap. |
J. Spicoli says: If you're seeing ads on this page then do what most intelligent people do and get Firefox with AdBlockPlus. Of course that might ruin your day, since you'd have nothing to complain about on the website of a man trying to help you. |