Check out our blog for this post about gold buying, “Gold Parties Pay Cheap Prices for Gold”, where we present anecdotal evidence of what happens at gold parties. In our example, our client was offered $600 for the gold lot we would have willingly bought for $1000. In these hard times, that difference could have paid the rent or bought food for a family. Some of the professional gold buying companies, so common these days, are like swarms of locusts descending across the land, gobbling up the low hanging fruit and anything green.
Egregious buying practices certainly don’t make the jewelry business look good. In this example, the gold party buyer enticed the party thrower with 10% of the take to set up a “party” in their home. Family and friends gather, defenses down- and then are offered little for their gold. Would you do this to your friends and loved ones?
The antics of some of the gold buying outfits on TV have been well documented as pretty reprehensible- you can google the subject and get thousands of hits. One of my clients told me he sent in some gold to a TV buyer, rejected the first offer and wanted his gold back, and was immediately offered 3 times the initial offer.
And then we have the companies that set up for a day or two in a local hotel, buy huge category killer ads in the local paper promising the absolute best prices, yada yada. The ones in our area are now doing 2 full page ads side by side- in your face and very impressive. Feedback from our clients who have been to some of these “events” indicate the offers are low ball- definitely the absolute best for the buyer, not the seller.
In business, there is nothing wrong with bargaining, trying to negotiate a better price, but when the playing field is not even, the ethics of taking advantage of ignorance or lack of knowledge are certainly questionable. Yes, we live in a free market society, and sure, it is buyer/seller beware, but come on- would you like someone to buy your grandma’s old gold or diamonds on the cheap?
At Mardon, we do buy gold and estate jewelry- buying over the counter has certainly helped us survive in this difficult economy. However, we pay a price that allows us to make some profit but also gives our customers a fair return.
Most importantly, we do our part to educate folks- see our blog about the facts behind gold buying. We’ve even set up a handy gold value calculator on our website to help sellers get a good idea of the value of their gold.
We’d welcome your feedback.
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