SCAM WATCH: What’s Wrong With Cash-For-Gold Stores?

cash for gold scam, cash for gold shop, we buy goldQ: Wouldn’t it be easier to sell my gold and silver to a local shop than a dealer?

A: The increases in the price of gold and silver over the past decade or so is evident in the explosion of new “cash for gold” stores all over the place. These stores are everywhere! They seem to pop up in every strip mall that has an extra bay open. Why are they popping up and how can so many of them be in business?

These stores are open because they’re ridiculously profitable, and they’re ridiculously profitable because they’re ripping people off. These stores buy scrap gold and silver in jewelry and coins. The scam is that they pay pennies and nickels on the dollar. I went into a couple of stores to verify this and was offered 50% of the value of my coins and about 20% of the value of my jewelry.

The general public simply doesn’t know how much their gold and silver are worth. Getting cash for old junk they had sitting around sounds great until they realize what the value of gold and silver truly is! These scam houses are getting away with ripping people off while appearing to be helpful and generous.