I ran into a CASH FOR GOLD scam that was scamming the gold buyer.

[cyberdan]

Last saturday one of my last yardsale stops was a trailer park community wide yardsale. All vendors were setup in one place. One of the vendors was a CASH FOR GOLD type buyer, she also lived in the park. I played it dumb and started talking to her. It only took a minute to tell she was VERY new to the game. But, she had a big professionally made banner and several bottles of testing acids and a powerful loupe. She was way too green to have put this all together herself so I came clean.

I didn't have the heart to tell her she was being scammed but I hinted. She is a new member of Home Gold Party Company and she paid her $300 to get there. They gave her a sign, business cards, the loupe, the acids and some training. She hosts gold parties too. She told me if someone brings in too much gold and she does not have enough cash "thegoldrefinery" send a runner with the needed money. She also said they keep pushing her to "recruit" new buyers because she will make money on what they buy. RED FLAG TIME!!! I asked if this was multi-level-marketing and she said yes. So I had to be nosey and ask how much they paid her. She was proud that she gets 10% of all buys.

I told her about 14K never being 14K and she had never heard that before, also electronic testers which they didn't tell about either. (I wonder if the acids are properly marked to read low?)

 

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[Sheldon J]

I believe it was 60 minutes that covered some of the scamers about a year back.... many only offering a small % of the actual value, and a few offering bullion silver prices for gold coins.... Caveat Emptor!!!

 

[creeper71]

I believe it was 60 minutes that covered some of the scamers about a year back.... many only offering a small % of the actual value, and a few offering bullion silver prices for gold coins.... Caveat Emptor!!!

Most the these cash for gold companies are 1 company with multpule names.. I just seen a News Clip on one of the Morning news shows last week..They pay as low as 1.50 per DWT.. If that isn't a Scam nothing is..When the high profile news caster confronted the CEO about the low Ball price His only answer was 1.50 is perfectly legal...

 

[diggummup]

Who in their right mind would sell their gold for $1.50 a pennyweight? $30 an ounce? Come on. If someone is that stupid then they deserve to get ripped off, sorry.

 

[creeper71]

Who in their right mind would sell their gold for $1.50 a pennyweight? $30 an ounce? Come on. If someone is that stupid then they deserve to get ripped off, sorry.

Dig's you have to remember alot of the people selling there gold an silver are elderly people who still trust people like it used to be in the old days an they don't know gold is 1600+ per ounce. also alot of people don't know what a penny weight is. I know it sound stupid to us cause we know what we are doing... Think about the elderly lady who's Husband just passed an she has no money to bury him an he told her to sell the gold if need be if something happened to him.. she more then likely will have no clue what it's worth an if he boght it in 1940's she probly thinks it's a good deal

Here is a story unrelated to gold.but you will see where I am comiong from.. My Grandma had a Shawnee PussnBoots Cookie Jar an one day I was there an I said Grandma did you know that your Puss n boot Cookie Jar is worth 175-200.00 (this was back in early 2000's) she said no it can't be.. I said why can't it Grandma? she replied cause I only spent 1.50 at the 5 an dime for it in the late 40's. then she said I believe it was 1946 no no 1948... So she couldn't an wouldn't believe me no matter how hard I tried to convince her that just cause something was bought for only 1.50 in the 40's that it would increase in value

 

[diggummup]

In that case they should be prosecuted for taking advantage of the elderly.

 

[creeper71]

In that case they should be prosecuted for taking advantage of the elderly.

Agreed.. oh there is a cash for gold in the mall I work at an the one guy there told me he always offers 10.00 per dwt as first offer... I gave him hell he tried to play it off like I was stupid but I told him flat out I been buying an selling gold an silver since 2007. I know what is what an what it is worth... That low balling like that is f ridiculous!

 

[Sheldon J]

Agreed.. oh there is a cash for gold in the mall I work at an the one guy there told me he always offers 10.00 per dwt as first offer... I gave him hell he tried to play it off like I was stupid but I told him flat out I been buying an selling gold an silver since 2007. I know what is what an what it is worth... That low balling like that is f ridiculous!

You don't think they pay for those expensive kiosks in the mall by being generous do you That and many tend to keep the stones which are more often than not more valuable than the gold setting as a personal bonus.... Yes this is against the law it is called fraud by deception but someone has to press charges first....

Back during the last silver rush what what that in the 80's there were news stories of the elderly selling off the family silver for low ball scrap prices.... the antiques they were dumping were worth substantially more than the scrap prices they were getting....

 

[bazinga]

I really have no sympathy for people that sell their items for next to nothing. If I offer you $1 for an item and you accept, then that's that. The item might be worth $2 or it might be worth $2,000. The value that I sell it for isn't relevant to what they are willing to sell it to me for. I never call somebody a scammer if they are trying to sell me $10 in gold for $100, so why does it work the other way around?

Speaking for the elderly, they have had their ENTIRE lives to educate themselves on what they own and the value of it. If you go through life not knowing that gold and silver is valuable, then that's on you. Not me, as the buyer. The seller can walk away at any time during a transaction. No gun is being held to their head and forcing them to sell.

I've never understood why people call this is a scam. The seller is not being forced into the transaction, especially at a gold party or cash for gold storefront. The seller came willing and ready to sell. If they are able to get to one of these locations, then surely they can go to the library and get on the internet and do some google searches to figure out what their gold is worth.

 

[diggummup]

I will try to purchase precious metals at the best price I can get it for, but i'm up front with everything. I bought some gold off a lady last weekend at a private estate sale. I asked her,"how much do you want me to make of off you on this? You want me to make 25% or you want me to double my money?" She actually said she wanted me to double my money. I paid her $25 a pennywieght. She knew gold and she knew gold prices and she wasn't elderly. I walked away with 37 dwt., mostly 14k., a couple small 18k pieces. She wouldn't part with anything that had diamonds in it though.

 

[cyberdan]

I really have no sympathy for people that sell their items for next to nothing. ...Speaking for the elderly, they have had their ENTIRE lives to educate themselves on what they own and the value of it.

I agree 100% and when I buy, it is usually the elderly that drive a hard bargain.

 

[jerseyben]

You don't think they pay for those expensive kiosks in the mall by being generous do you That and many tend to keep the stones which are more often than not more valuable than the gold setting as a personal bonus.... Yes this is against the law it is called fraud by deception but someone has to press charges first....

Back during the last silver rush what what that in the 80's there were news stories of the elderly selling off the family silver for low ball scrap prices.... the antiques they were dumping were worth substantially more than the scrap prices they were getting....

Fraud by deception? Where did you come up with that?

 

[bazinga]

I agree 100% and when I buy, it is usually the elderly that drive a hard bargain.

I've found this to be very true very often. I often encounter the elderly wanting MORE than their item is worth than them just giving it away. It's usually the under 50 crowd that seems to be the most clueless. I even find those that sell on ebay can often by the dumbest of all. They go on and on about how much certain items are worth while they just give away valuable items like coins and precious metals. It's all stuff that could be easily looked up, but they don't even make the effort.

Dig, in some occasions I am up front with what items are truly worth and how much money I will make on an item. But that's rare. That usually happens when I start talking to somebody and they bring out items from the house and I just try to be honest with them when they ask how much I would sell it for. Of course, when I see a 14k ring priced at $1, I buy it without saying a word.

 

[diggummup]

Dig, in some occasions I am up front with what items are truly worth and how much money I will make on an item. But that's rare. That usually happens when I start talking to somebody and they bring out items from the house and I just try to be honest with them when they ask how much I would sell it for. Of course, when I see a 14k ring priced at $1, I buy it without saying a word.

That's actually what I meant when I say I'm upfront with everything when it comes to value, it's when I get them to "bring out the good stuff" from inside. If it's already sitting there, ripe for the picking with a next to nothing price, it's mine. Got a piece for $5 about a month ago, sold it for $510. As far as the elderly go, around here there are many, many senior citizens (you know, Fl. retirement capital), some of them are sharp as a tack and some of them shouldn't be living alone much less driving and making financial decisions.

 

[savant365]

I live in a pretty rural community and I dare any of you to come here and try to get the best of these old folks. The best yard sales around here are in the high end neighborhoods but the less affluent ones know what stuff is worth. When I go to a yard sale around here I can tell immediatly who is trying to make money and who is just trying to get rid of as much as possible.

 

[Sheldon J]

Fraud by deception? Where did you come up with that?

Local PD uses that term on anyone that attempts to decieve someone on value, on a package scam, on the switch and bait, well you get the idea. Yes they get to go to jail if caught....

As to old people... some day you will be there, some elderly may suffer from various illnesses that cause them to have dysfunctional issues, they may forget things, some stay as sharp as a tack, some are ill informed as to the value of their stuff be it on the + or -, they listened to someone who considerer's them self a expert with out the facts but they may value their opinion. but flat out taking advantage of someone because they may not have both oars in the water is wrong....

There is a old saying "What goes around comes around" and even the show "Pawn Stars" will be honest and if someone under values something they will tell them the truth, but they do go for a 100% profit margin in the end....

 

[ole_grisley]

I drive taxi here and we haul lots of the elderly in a program here and I am always talking to them about gold and silver and I tell them do not send anything out to the buyers on tv ! then I tell them I sent a test package just to see what they would give. I send $75. woth that I had bought for $56. and they sent me a check for $ 16. I have stopped a lot of them from sending it in to the ones on tv and some that had a lot and it was more than I could buy I sent them to a guy that I know is honest and pays a fair price. and I have even tols some what they have and what the value should be and if needed I have looked things up for them. and you know it pays to be honest as some times they even give me an old coun or something and when I offer to pay they say no its yours.

 

[spartacus53]

Value is only only what someone is willing to accept, or make payment on.. Period.

Lets look at a used comic for example

Amazing Fantasy #15 featured the first appearance of Spider-man and the prices range from $4K -#20K - no lie

The best part is the cover price was only $0.12 when printed. By right the police should arrest everyone that sells it for scalping What has value to one person, may be garbage to the next.

That should go for any commodity

Deal with it

 

[lookindown]

I really have no sympathy for people that sell their items for next to nothing. If I offer you $1 for an item and you accept, then that's that. The item might be worth $2 or it might be worth $2,000. The value that I sell it for isn't relevant to what they are willing to sell it to me for. I never call somebody a scammer if they are trying to sell me $10 in gold for $100, so why does it work the other way around?

Speaking for the elderly, they have had their ENTIRE lives to educate themselves on what they own and the value of it. If you go through life not knowing that gold and silver is valuable, then that's on you. Not me, as the buyer. The seller can walk away at any time during a transaction. No gun is being held to their head and forcing them to sell.

I've never understood why people call this is a scam. The seller is not being forced into the transaction, especially at a gold party or cash for gold storefront. The seller came willing and ready to sell. If they are able to get to one of these locations, then surely they can go to the library and get on the internet and do some google searches to figure out what their gold is worth.

Ive never understood it either...in this day and age there is no excuse for not knowing what gold is worth...if you believe the first person you ask about something you are going to have more trouble than just being underpaid for your gold.

 

[lookindown]

Local PD uses that term on anyone that attempts to decieve someone on value, on a package scam, on the switch and bait, well you get the idea. Yes they get to go to jail if caught....

As to old people... some day you will be there, some elderly may suffer from various illnesses that cause them to have dysfunctional issues, they may forget things, some stay as sharp as a tack, some are ill informed as to the value of their stuff be it on the + or -, they listened to someone who considerer's them self a expert with out the facts but they may value their opinion. but flat out taking advantage of someone because they may not have both oars in the water is wrong....

There is a old saying "What goes around comes around" and even the show "Pawn Stars" will be honest and if someone under values something they will tell them the truth, but they do go for a 100% profit margin in the end....

So if a steakhouse has a steak for 50 dollars you can call the police and have them arrested for trying to deceive you on the value because you can get one for 15 dollars? You dont have to take their offer on your gold.