You’ve seen those commercials, we’ve all seen them and they say “send us your gold and will send you cash,” and it’s a tempting promise especially during the recession but is it one you can bank on? Consumer correspondent Elizabeth Leamy, right here right now to tell us the result of her investigation.

Good morning here’s some of the gold we sent out. Right here we sent some of it to the industry leader Cash4Gold and also to two other mail-in companies that we chose at random, Dollars4Gold and Get Gold Cash.

Now is the time to send your unwanted gold for cash.

Call it the gold rush of 2009, it’s suddenly such a lucrative business that industry pioneer Cash4Gold was able to afford a coveted Super bowl commercial.

I can get cash for this gold medallion of me wearing a gold medallion!

But is it a golden opportunity for you? To find out we assembled three packets of gold and had master gemologist appraiser Don Palmieri and his team verify that every piece was 14 carat gold.  Based on the carats, the weight and the price of gold that day, Don said we could see optimum offers of about $350 for each packet.

image

Thank you. You’re welcome.

We wanted to verify that we could get that price so we visited a store at Manhattan without identifying ourselves. Sure enough, the jeweler there tested our gold and offered us $345 for each.

$345. Ok thanks!

So we sent our packets off to Cash4Gold, Dollars4Gold, and Get Gold Cash. A few days later we started getting offers.

Get Gold Cash promises reliable compensation on its website. So how did the company want to compensate us – with $206. When we said,“No thanks.” Get Gold Cash immediately raised its offer to $275. But remember our appraiser said we could get as much as $350 for our gold. The Baltimore based company later told us it does not pay as much as New York buyers do.

Next stop Dollars4Gold which promises top dollar for your jewelry. In a new twist, this company said some of our pieces were only 10 or 12 carats even though our state of the art testing showed everyone was actually 14 carats. Dollars4Gold’s offer – $89.71.

D.B.: If I was looking to get $350 for my items and I got $89 for them then I would not be happy. We commit to the consumer that if they aren’t happy with our payment for any reason we’ll go ahead and send their material back to them with no questions asked.

(Commercial): We mailed and go baby.

That leaves Cash4Gold, the biggest in the business.

(Commercial): Goodbye old friend.

Cash4Gold has a D rating with the Better Business Bureau.

B.W.: That means that we have enough concerns about this company that we recommend caution in doing business with it.

300 customers have complained to the BBB in the past year mostly about the price they were offered. So what did we get from Cash4Gold? We showed the company’s offer to our expert.

E.L.: and here is what they offered us $66.05.

D.P.: Wow! That is incredible.

E.L.: Incredible how?

D.P.:  It’s incredibly low.

We called and asked for our gold back and option all customers have. Then the company more than doubled its offer to a $137.

E.L.: Does that make it better to you?

D.P.: It’s still pennies on the dollar.

We asked Cash4Gold CEO Jeff Aronson why his company offered us a $137, $208 less than what we were able to get elsewhere.

E.L.: Why so low?

J.A.: That’s what that material was worth to me at that time. That’s what is worth to me to process. I make no apologies for pricing whatsoever. I’m a service business.

Cash4Gold points out that its own website states that it is not the best price option for all customers. The company said that its BBB complaints represent a tiny fraction of its business and it expects a higher rating soon. Cash4Gold says its customers are focused on service and convenience rather than price.

E.L.: Aren’t you cashing in on the fact that people don’t know the value of their gold?

J.A.: Oh my God no! If all you care about is the net dollar and you’re willing to go to city part of town and you’re willing to travel around, I want you to go there. I don’t want you to come to me. I want you to come to me for convenience and ease.

So if you have gold to sell it’s up to you to decide what’s more important – convenience or cost?

{ 0 comments }

Comparing Gold Extraction Methods

by admin on October 11, 2011

The Cripple Creek District, known on its heyday as the world’s greatest gold camp, lies on the back side of Pikes Peak in Colorado and what is commonly known as the Cold Era. This ancient volcano located in the 39 mile volcanic field, measures roughly 6 square miles and is surrounded on all sides by a roughen crumbly combination of quartz, feldspar, and mica.

At the edge of the Cold Era, is what is known today as Mt. Pisgah. Over 35 million years ago, 10,400 foot tall Mt. Pisgah, was just another small volcano. When the larger volcano collapsed, after erupting through older rock, giant boulder shattered around the basin. Mineral-riched solutions including gold flowed into the faults and fissures created by the collapse. The veins cooled, condensed and hardened over time.

Unlike 95% of the gold on the planet, Cripple Creek Gold actually looks gray on its natural form due to the intense heat from this process.

E.H.: This gold deposit is unique in some ways. It’s very large. It’s not as rich as some say the golden mine in Australia but I think for total ounces that have been and will be produced, that it ranks I would guess among the top 4 or 5 gold districts of the world.

In 1891, Cowboy Bob Womack convinced others that gold existed in this district and the boom was on. In time, the Cripple Creek District expands 24 square miles with 25 towns and counties as well as 100 of mines.

33 millionaires including Winfield Scott Stratton, James Byrnes, Ed Dela Vern, Albert Carlton, Spencer Penrose, and Charles Tutt regenerated in the next 15 years.

By 1896, over 19 million dollars of gold had been produced. There were 350 working mines and about 30 assayers work in the district.

The word assay or cupellation as it is known today means to separate valuable metals such as gold or silver from base materials such as lead. During the 1800’s, cupellation was known as fire assay. Surprisingly, the assay process has not changed much over the last 100 years. Gold ore is still blasted, crushed, separated, powdered, and assay to assess the value of gold for a ton of ore.

100 years ago, assayers supply the variety of chemicals such as mercury, carbon, and acid for use in the assay process.  They were mixed with crushed ore to find out the pure gold content. Assaying is an important part of the mining process since the technique tells how much pure gold is in the rock as well as its value.

Today, the Cripple Creek and Victor Mine has picked up where the gold boom left off. The mine’s majority owner, AngloGold Ashanti mines gold in ten other countries including Russia, China, Australia, and Brazil. The Cripple Creek – Victor Mine is its only North American operation. Since 1995, the Cripple Creek and Victor Mine has processed over 20 million tons of gold ore in the Cripple Creek District. By 2004, the mine has produced an amazing two million ounces of 99 or ½% pure gold.

Back in 1899, the United Mine Tunnel was built to process gold ore lying in the city of Victor. The tunnel emptied out into what was later called Eclipse Gulch. Victor fathers, Harry and Frank Woods, finance the construction of a huge mill called the Egonomic Gold Extraction Company. In its time, the Egonomic gained prominence as one of the first mills to use a chlorination process to refine gold in the district. Furnaces at the mill were fired by crude oil brought up on the Florence and Cripple Creek Railroad which ran nearby. Up to this point both the Florence and Cripple Creek and Colorado Midland Terminal Railroad had serviced the mines by hauling ore out of the district to be processed. At its peak, the Egonomic was processing 300 tons of ore daily. Even Theodore Roosevelt was impressed during a visit in 1901.

Unlike the old days of processing large amounts of gold, open pits are blasted and bulldozed to mine the ore. Today, the Cripple Creek and Victor Mine uses the heap leaching process to remove gold from the earth. After the gold is assayed, ore is heat on to a padded leach pad with cyanide and other chemicals. Next, the gold is processed through carbon columns and kilns. After passing through a tilted furnace and electrolytic tank, the gold is then poured in to cones. This last process varies slightly from the days when miners muck the gold themselves – shipped at above ground and settled by a wagon or train to be processed. During the late 1800’s and early 1900’s, the closest mill was The Golden Cycle located at the Colorado City and the west side of Colorado Springs.

In 1935, President Franklin D. Roosevelt successfully requested congress to set the price of gold at $35 per ounce. The actual result of it, increased mining but hard rock mining in the Cripple Creek district became increasingly expensive. For the construction of the Carlton Mill in 1949, the Golden Cycle mill in Colorado City fell in to disuse. Although the Cripple Creek District still ranks as the 5th most valuable gold camp in the world, hard rock mining became too expensive and the mines of the Cripple Creek District closed down one by one.

Some say it was singer John Denver who revived an interesting Colorado in 1970’s. But the revival included a new interesting mining especially under President Richard Nixon eradicated President Franklin Roosevelt’s gold standard so that the price of gold could rise in 1970.

Today the Cripple Creek and Victor Mine is the largest operation in Teller County and the biggest open pit mine in Colorado. Smaller mining operations also continued to work around the district.

Here at the Cripple Creek District Museum, the 1890’s assay office offers the only glimpse into mining techniques in the past.

E.H.: I think that today the geologist, geophysicist, and engineers who’ve worked on these deposits can learn from the work that has been done in the lifetime. They learn and have been able to do some of the things today because they didn’t have to repeat what people did 100 years ago.

{ 0 comments }

Global Gold Rush in Thailand

October 11, 2011

Veronica: In the hot of Bangkok’s gold district, business is good. Everyone’s buying whatever they can afford. In Thailand, earning gold is possibly culture and that’s been going on for years. So it’s not at all unusual for a fruit vendor of apparently modus means like these to sink all their savings into gold. Sometimes [...]

Read the full article →

Gold is starting to lose its glitter following the slump

October 8, 2011

For any  investor, owning stocks of gold for the last few days have been a nerve-wracking time. The sell-off over the last four trading sessions has been the worst since February 1983. After hitting a high of $1900 an ounce in early Septermber, it fell to just above $1500 on Monday. But if you bought [...]

Read the full article →

Mining gold in Australia – they are back in business

October 7, 2011

Well, It’s official Ballarat is back in the gold business, It may not be in a Gold Rush, but It’s a welcome boost to a town that was once an epicentre of Australia Gold Industry and It’s all thanks to the company that bought the old Ballarat mine last year tracing the rising price of [...]

Read the full article →

Comparing Gold versus Paper Loans

October 6, 2011

This is world war three. It’s Gold versus Paper. It’s offthenticity like Gold versus inoffthenticity like the American Paper Empire. It’s about a new century with new values. And it’s about the country like the US with only paper behind it crumbling. And the other interesting thing here is that many gold analyst around the [...]

Read the full article →

Central banks – why do they hord gold?

October 5, 2011

Ron Paul (RP): Very quickly if you could answer another question because I am curious about this. You know, the price of gold today is $1580. The dollar (??) three years was devalued almost 50%. When you wake up in the morning, do you care about the price of gold? Ben Bernanke (BB): Well, I [...]

Read the full article →

Interview with Jim Rogers who is poised to buy more gold

October 4, 2011

The commodities market I know you think there’s a secular bull market there crv index is down 12% since the end of April. Have you re-evaluated any of your commodity  investments on more of a short term basis? Why? Because they are down 12%?  I think Ronda, markets go up at….at…. markets have 30 – [...]

Read the full article →

How is gold refined and excavated?

October 3, 2011

Gold is one of the softest and most malleable of the metals. It can be pressed extremely thin, crafted into shapes even drawn out to form a fine ware and all without breaking. Gold isn’t affected by water or oxygen as many metals are so it doesn’t rust or tarnish either. Most gold comes from [...]

Read the full article →

Hugo Chavez wants the Venezuela Gold back home

October 2, 2011

Chavez orders 11 billion dollars of gold home. Venzuela’s finance minister Jorge Girodani said that “the weakening US dollar and the European sovereign debt crisis threaten Venezuela’s saving and they will be more secure at home and in “allied” countries.” Yeah, that’s right – the various gold hoards by various countries are not held in [...]

Read the full article →

You and your family are going broke without knowing it

October 2, 2011

You and your family are going broke right now and you don’t even know it. When the gold’s standard was set in place, a price of gold remained a constant $20.35 per ounce; and this price fluctuate only one penny over the years 1833 to 1890. That means that for 57 years the US dollar [...]

Read the full article →

Gold is the only safe haven asset

October 1, 2011

Global ‘currency war’ takes a dramatic twist – now this is, of course, the currency war relating to the Swiss franc when they’ve now abandoned the floating exchange rate. But in this article, is an important quote from David Bloom of HSBC that I want to refer to, Max, “Gold is the only safe haven [...]

Read the full article →

Will Gold Prices Rebound to $2,000 Ounce?

September 30, 2011

Joining us to talk about that, Gijsbert Groenewegen. He’s founder of Silver Arrow Capital Management. That’s a precious metals hedge fund. I mean, is it a new normal when it comes to gold and silver at this point? Let’s talk about gold, is it a new normal? No it isn’t. It’s a normal reaction. When [...]

Read the full article →

Is Cash for Gold your only option?

September 24, 2011

Many of us are feeling the pinch of the economy lately and it order to make the bills we resort to selling off some of our precious assets. The ads for various cash for gold companies seem to be everywhere. Full page ads in the newspaper, 30 second spots on TV, it is no doubt [...]

Read the full article →

How long will the Gold Bull market last?

August 2, 2011

Peter Shiff has an interesting view on being bullish about gold. He wrote a book “How an economy grows and why it crashes”. No matter how much money Europe will borrow, they will print money and devalue the Euro. Instead of gold going to 5000, it might go to 10000 if this keeps going the [...]

Read the full article →

Would you buy gold now or hold on and buy gold later?

July 11, 2011

Last night I heard Ron Paul on Fox News talk about the value of gold, arguing that now is the time to buy. Here is what he had to say: If you want to spend money, you have to pay for it. Ron Paul would never vote on anything that is not paid for. If you [...]

Read the full article →

Is gold real money or not and does Federal Reserve hold any gold?

June 19, 2011

The confidence is very low. When you speak of independence, people hear secrecy. The SEC is pressing the companies to reveal information, while the Federal Reserve is doing the opposite – they don’t wan to scare the markets. The Federal Reserve claims it doesn’t hold any gold and it hasn’t held gold since 1934. However [...]

Read the full article →