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.
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?
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