How does CashForGold afford all the gold they buy?
dogoffire70 asked:
Because it’s buying $200,000,000 of gold now. How the hell can they afford that? And why are they buying it?
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Because it’s buying $200,000,000 of gold now. How the hell can they afford that? And why are they buying it?
Sorry, I am a kid. And I am curious.
September 1st, 2009 at 6:29 pm
I honestly dont know, but im thinking that they buy it thinking that the price of gold will go up and when it spikes( goes off the charts) they plan on re-saleing it to other people making a profit on it. Kinda like then you go to Costco and buy 30 candy bars for $15 bucks and then sell them a dollar a piece, but on a much bigger scale.
September 4th, 2009 at 9:23 am
Ok first of all you can’t believe what they say in the commercial about the 200 mil buyout. Secondly, the way they do it is that they pay you way less of what gold is usually worth. They make huge profits by melting it and re-selling it at market price which is 900 something an ounce.
September 4th, 2009 at 1:42 pm
The price of gold you hear in the financial news usually refers to the approximate price a buyer of large lots of gold (or contracts to buy lots of gold), of say 100 oz. or more, would expect to pay a top level refiner who processes gold. Currently the price of gold is about $950 an oz. and has been fluctuating between $920 to $970 an oz. (keep in mind these are TROY ounces which are slightly heavier than a standard or “avoirdupois” ounce). The companies that buy scrap gold (dental fillings, old jewelry, old coins, etc.) will buy your old gold for much less than $950 an ounce since they have to make a profit selling it, and I would be surprised if the mail-in companies pay more than local gold buying shops. You’d probably be lucky to get $850 an ounce from companies like CashForGold and they of course pocket the difference between what they pay you and what they sell it to a refiner for. Personally, I doubt they are refiners but it’s possible. Also, when you send your stuff to one of these mail-in places you are at their mercy and they can tell you anything they want about how much gold there was in your stuff. They might tell you that items were of lower gold carat weight than was stamped on the items (which actually does happen) or they might tell you that something weighed less than it actually did. Most local gold buying shops also will try to make more money on the stuff they get in as scrap by selling jewelry that is in good condition to jewelry brokers and gold coins to numismatic (coin collecting) supply companies for more than scrap price. So, they may buy an ounce worth of gold from you for $850 and sell it for well over $950.