How Cash4Gold Works - From a Former Employee

http://www.complaintsboard.com/complaints/cash4gold-c117648.html

by releasedatez • 17 years ago

50 31 17 years ago

how is this allowed to continue?

jonknee2• 17 years ago

What law are they breaking? The only way they get stopped is because it's mostly used for fencing. People with legitimate assets go ahead and get a better price at local pawn shops.

axod• 17 years ago

For as long as there are stupid and desperate people out there I'd say. I don't see anything they are doing that is illegal - though obviously a pretty bad scam.

Brushfire2• 17 years ago

I hate to say this -- but who didnt know this was a scam? This is like many late night tv infomercials on a variety of topics. Clearly, the issue is that you GIVE them your stuff before they tell you the value. Its part of their system, but its also the key part in the scam.

F- To Cash4Gold, but its no worse than all the other scam companies out there. If it sounds too good to be true, it is.

trjordan• 17 years ago

It's a lot harder to believe that a company with a Superbowl ad is an out-and -out scam. At least in my mind, I tend to assume that if they make it to that level, they're legit.

stcredzero• 17 years ago

Like a lot of the original dot.coms?

zealog• 17 years ago

Like if you're as rich as Bernie Madoff you must be legit?

You do realize that the "con" in "con man" comes from the word confidence, right? The most important thing for any scam to work is building confidence.

What better way than with celebrity-ish pitch men and a Superbowl ad?

swombat• 17 years ago

Probably the people who watched the superbowl commercial?

http://www.youtube.com/watch?v=I-HmD3A0GzY

The superbowl advertising sales department should probably be fired.

Brushfire2• 17 years ago

I had no idea they were that big. Wow. Admittedly, I don't watch the super bowl or have cable, but still, even with big marketing dollars this still screams scam to me.

The fact that they can afford a super bowl ad just proves the effectiveness of their scam. Its kind of interesting as a case study, as long as no one I know, like, or care about does business with them.

noodle• 17 years ago

on the flip side of that coin, superbowl ads were going for super cheap this year, and i bet they had to scrape bottom, dredging up these guys, just to fill up the slots.

aardvark• 17 years ago

Who doesn't know? Well, my five-year-old is fascinated by these commercials. Of course, he doesn't have any gold to sell, but still...

Actually, I've used it as a good learning experience for him. "Don't believe everything you see on television." Now he wants to make his own TV commercial to warn others!

JacobAldridge• 17 years ago

This is why I love cockeyed.com. Not only did he draw attention to the scam [1], he was actually offered money to take down that page - and printed Cash4Gold's contact with him in full [2].

But my favourite (related) article was when turned the scam around on Gold Kit (similar deal) and sent them junk he had spray painted gold. [3] Fun.

[1] http://www.cockeyed.com/citizen/goldkit/cheat.shtml [2] http://www.cockeyed.com/citizen/goldkit/reputation.shtml [3] http://www.cockeyed.com/citizen/goldkit/gold_kit02.shtml

bprater• 17 years ago

"I guess this guy has posted this a few other places around the internet but I thought it was pretty good info that should be passed on."

Really? Why not just link to one of the many exact duplicates of what you posted, then? Trying to get some Google love? I'm tempted to flag this except that some Hackers may be interested in the story itself.

sgoraya• 17 years ago

My sentiments exactly, but its shoemoney just doing his thang!

I read his site regularly and there is usually good/great info regarding ad networks/SEO in general, but there is the occasional 'trying to get some google love' post.

releasedatez• 17 years ago

Just want to clarify, I am not in any way related to shoemoney. I just read his blog everyday and thought these are some good info to share.

sachinag• 17 years ago

I'm so glad that $40 million went into this company essentially the second before the backlash hit a fever pitch. Problem is that the local news stations that would ordinarily have a field day with this story aren't going to report it because the C4G ads are highly lucrative in this economy.

drewcrawford• 17 years ago

Blogspam? Earliest copy of this I could find was http://www.complaintsboard.com/complaints/cash4gold-c117648....

From there it was picked up by The Consumerist... after that I lose track.

kiba2• 17 years ago

Turning gold into cash should be the last thing people do.

Unlike the US dollars, gold can't simply be mined fast enough to reduce its values. Whereas with the US dollar, the US federal reserve can just print it, literally.

Gold is the money of the future, especially when the economic system finally collapse. Gold has been money for thousand of years for good reason.

Unless there are better form of money in a free market, gold is the best choice. Horde some of it.(Of course, don't convert your entire saving into gold, that's stupid.) It may leave you one of the last guy with real wealth after an economic collapse. It is the cork that float in an ocean of economic uncertainly.

This is of course, assuming that the government managed to outrun our economic productive capacity.

tjic• 17 years ago

> gold can't simply be mined fast enough to reduce its values

No, but people's DESIRE for gold can change quite quickly.

Gold can lose value very very fast if people decide that a given national currency is going to be inflation-free - they would rather have their wealth in a liquid form, and sell the gold for cash, thus driving down the price of gold.

Why did housing prices crash over the last year? Was it because so many houses were created in 12 months? No, it was because people's estimation of the value of houses went down, due to new and better information.

Gold is certainly not immune to such effects.

watmough• 17 years ago

One of the interesting things that has happened lately is a drop in gold imports to India.

The price has gotten so high, that India would rather become a net seller of gold.

Kind of an interesting dynamic.

katz• 17 years ago

> No, but people's DESIRE for gold can change quite quickly.

Whether or not people's desire for gold and PGMs change or not - they will still desire products that use PGMs (e.g. catalytic converters). Gold has some awesome properties.

Also - the desire for gold is 1000's of years old. Until women will be happy with a plastic engagement ring gold will remain valuable.

> Why did housing prices crash over the last year? Was it because so many houses were created in 12 months? No, it was because people's estimation of the value of houses went down, due to new and better information.

I thought it was because loans were given too easily (i.e. too much money in circulation).

> Gold is certainly not immune to such effects.

The reason why some people prefer gold as a store of value is because the government can't use inflation to rob you of your money. Inflation occurs always when the government prints more money and it serves as a hidden taxation. In the course of history a lot of governments printed money in order to finance its numerous social experiments (Germany, Zimbabwe, etc...)

The problems in Zimbabwe could have been averted if the government was forced to back their currency (partially) by gold.

Whether or not gold should be used as a medium of exchange is up to debate. The bigger question is: What gives you confidence in the value of a dollar?*

* substitute dollar with your local currency of choice (pound, Australian dollar, Euro, Zim dollar, rand, etc...)

run4yourlives• 17 years ago

Turning gold into cash should be the last thing people do.

So should taking a 30% loan three days before your paycheck arrives, but there's a whole industry built on that.

JimmyL• 17 years ago

>> Gold has been money for thousand of years for good reason

Only if you consider "because it's shiny" to be a good reason. That's the historical basis for gold being valuable - it looks good (according to the tastes of medieval royalty) when made into a crown/necklace, is easy to form into a nice shape, and is relatively scarce based on our current technology. There's noting innate in gold that makes it more or less valuable as a currency than any other resource that exhibits scarcity.

What we consider valuable changes with the times - go back two thousand years and change and you'll see that the most valuable items tended to be exotic rocks, salt, and certain types of dye.

zandorg• 17 years ago

I wanted to know what gold-pressed latinum was, having heard about it on Deep Space 9. I looked it up 2 weeks ago. It's basically a currency which can't be beamed or replicated, thus preserving its value as a currency.

Interesting, and according to Wikipedia, first devised in the short story series: Venus Equilateral.

kiba2• 17 years ago

Gold doesn't corrode, easily divisible, is portable are just many reasons why gold has been the money of choice.

In the desert, salt is worth more than gold.

Other part of the world, they use cows.

Like you say, it all depend on the circumstances, how much gold there is. However, gold has continued to be the money of choice for civilizations for thousand of years. It withstood the test of time and to this day continued to be regarded as a valuable commodity.

Ultimately, the value of gold is a subjective one.

daemin• 17 years ago

Though the catch is that gold itself does not have any purchasing power in the real world. You have to trade it for real currency before you'll be able to pay for other goods and services.

Additionally it doesn't actually provide you with a fixed income, like you can with cash in an interest bearing account, or with shares in companies that pay a dividend.

Suffice to say now would be an excellent time to turn gold into cash given the high current gold price. Just do it through a reputable dealer.

robotrout• 17 years ago

I disagree of course. Even 3% inflation is more than most people get in interest. But, of course, the good old days of 3%, or even 6% inflation are firmly behind us, aren't they?

What burns me is the capital gains tax, which, even in the best of times, is a slap in the face. But now, as we enter this period of extremely high inflation, anybody lucky enough to not be in cash, is promptly charged a nice fat capital gains tax the instant they convert their asset (gold/land/etc) into the inflated currency. Now, even if you are a good socialist and believe in capital gains taxes, I wonder how you feel when there's been no real gain at all? When all you did was preserve what used to buy a loaf of bread, so that you could still buy a loaf of bread after the inflation, and even then, are deemed worthy of confiscation.

My $0.02.

RK• 17 years ago

Last weekend I was at a hotel and saw a small seminar with a bunch of mostly older people. The sign read GOLD4CASH. Is this the other side of Cash4Gold's business?

I have actually heard some dubious ads on the radio about buying gold recently ("we'll send you your first shipment of real gold in 2-3 weeks after signing up", etc.).

DanielBMarkham• 17 years ago

This just in -- TV infomercials routinely exaggerate the benefits of their products and services.

I hate to sound flip, but -- so what? This (in my book) does not count as interesting or new.

dotmatrix• 17 years ago

Hahaha, gotta love the cash4gold banner ad below the flame!

How Cash4Gold Works - From a Former Employee

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