Is Cash4Gold a Scam?

Gold is way up in price, right? Yes. It’s up, in part because gold is the traditional safe haven for investors when the economy is unstable. It’s also up because of gold ol’ supply and demand. Gold is expensive to mine and because of that, there isn’t a huge amount of it running around. Because gold is up in price, so are the offers to buy your gold.

I don’t know about you but almost every day I either see, hear, or get in the mail an advertisement from somebody claiming to want to give me “top dollar” for my extra gold. There are a few problems with that. Among them, I don’t have any extra gold around the house and what is top dollar?

Let’s look at one of those companies today. You have surely seen commercials for Cash4Gold. All you have to do is put your gold in an envelope, send it to Cash4Gold and a check comes in the mail. There are many people that believe that this company is a scam. Others believe differently.

I have noticed that any company who is coming to you probably isn’t offering top dollar. Have you ever seen one of those signs that say, “We pay cash for houses.” Do you think that cash is top dollar? If Cash4Gold is coming to you for your gold, you are probably paying for the convenience. Most of the scam complaints that I read stem from people not getting offered enough money for their gold. Remember that just because they aren’t offering a price that you agree with, that isn’t a scam. That’s gold ol’ fashioned wheeling and dealing. On the other hand, I also read of reports of not-so-stellar customer service from Cash4Gold.

Here is my opinion: When you repeat back to yourself the premise of putting valuable gold in an envelope and sending it off to somebody you don’t know and saying, “just send me a check,” does that sound like a smart way to sell your gold? I don’t think so and although good people have reported having problems with this, it’s hard to have too much sympathy for people who sell their jewelry this way.

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