Cash 4 Gold

Cash 4 Gold-Predators Abound

 

I am sure that you have seen the signs on the brick and mortar buildings and on an increasing number of websites offering cash for gold, we buy gold or asking you to sell gold to them.

 

ABC News is only one of many broadcasting stations who have been all a flutter over the recent downturn of the American economic trend, sky rocketing gas prices and the dropping U.S. dollar and the rise of gold prices causing the increased number of people cashing in on the cash for gold boom.

 

But who is the real winner in the cash for gold rush?

 

I will give you a hint… It isn't you

 

As in the California Gold Rush (1848-1855) the miners shoveled a lot of dirt to get those nuggets but very few ever became wealthy however many a shopkeeper did and he did it by profiting off of the miner's hard work.

 

153 years later we have another rush for gold and things haven't changed all that much other than the way we mine for our gold. Many of us work hard for other people while we try to amass some gold for ourselves. Much of what we get comes in the form of gold jewelry for which we pay a high price.

 

Now as many people are in a panic they slip the jewelry from their fingers, necks and wrists and into a bag to be sent to the websites offering cash for gold.

 

In doing a little research for this article I came across a site titled "Cash4Gold", it is similar to many others in theory however the Cash4Gold website uses the "as seen on TV" logo and pictures of smiling happy people who have turned their "unwanted gold" into cash.

 

The Cash4Gold was recently featured in a USA today article as the largest on the professional online gold scrappers who are reported to spend 2-3 million in advertising and process about 25,000 transactions each month.

 

That is a lot of cash for gold.

 

The cash for gold craze capitalizes on people seeking liquidity but that liquidity comes at a price.

 

The article would talks of one person cashing in on 6 gold dolphin stickpins and walking away with checks totaling $5100.

 

Is that an exception or is that a sensationalized accounting that would lead one to believe that they too will walk away with that kind of money for 6 stickpins, what do you think?

 

At the time the article was posted in USA Today the price of gold was quoted at $930.00 per ounce. This means that you could buy about 5 1/2 ounces of gold for that same $5100 check.

 

Do you remember the quote in the movie Swordfish when John Travolta was explaining how Houdini spirited an elephant from a stage surrounded by people? The answer was simply misdirection.

 

That is the same way that these cash for gold merchants get you to sell gold at fractions of its true worth.

 

Consider this when you buy gold you pay for it by the gram however when you sell gold you sell it by the pennyweight.

 

Who cares, right?

 

You should care because it is a mere shell game used by cash for gold entrepreneurs to buy gold at deep discounts.

 

Using their payment chart for a minimum of 10 ounces of your 18k gold you would receive $440.40 per ounce for gold worth $697 per ounce at a karat weight of 18k and if you sell them less than 10 ounces at a time you receive even less.

 

According to the experts the majority of quality jewelry is 18k. That would mean that you would have to sell 11.5 ounces of 18k gold to walk away with a $5100 check.

 

It doesn't take Albert Einstein to figure out that you didn't make any money selling gold to people like these it cost you money.

 

Just how much it will end up costing you to sell gold? The cost to get cash for gold all depends on who you talk to so don't just sell your gold jewelry at the first price. Shop around as they all are willing to pay at different price levels. The problem that I see with selling your gold online is that once it leaves your fingers and you cash the check –you're done.

 

Some of these gold scrappers do offer a refund if you are unsatisfied with the price they quote however statistics show that there are very few returns because as the article says "You can always buy new."

 

No matter how you slice that loaf you end up with the crust.

 

Visit: http://itsgoodbusiness.net for real-time information on how you can earn long term supplemental income without selling a thing.