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Hoping for a little extra holiday cash this year. Many people are selling their gold and jewelry online hoping for a big payout but are your really getting back what your stuff is worth? Fox 5's Tisha Thompson investigates the cash for gold standard.
The business of fine jewelry. Getting hold of a precious piece of metal can be a dream. Cashing in now could get you a pretty penny.
We have things that's just sitting around that you could actually turn into cold hard cash. That's very good.
Well I actually paid a thousand dollars for it and I actually got thirteen hundred back so that's actually a profit and I've had it for two years.
People are even trading in tupperware parties for gold parties. A chance to take old, broken, or unwanted jewelry and turning it into cash.
We buy anything, any conditions.
Popular now because the price of gold is on the rise, due to the weak dollar. Nearly double in value in the last four years gold briefly reached a thousand dollars and ounce earlier this fall. Business's are cashing in too.
Gold, silver, platinum, rings, chains, and bracelets into cold hard cash.
Commercials and websites, touting great deals on your unwanted jewelry sounds too good to be true. So Fox 5 put them to the test. We went online and requested the shipping materials from several websites interested in buying back gold, and with in a few days we heard back from broken gold dot com, cash for gold USA dot com, and the popular cash 4 gold dot com. We'll tell you which website gave us the biggest pay out in a minute, but first lets go shopping. We purchased three identical fourteen karat gold necklaces from a department store and brought them to an independent appraiser.
Let me weigh it real quick just to check what it is.
John Wen is the president of May Jewelers. A referral only jeweler in Tysons Conner. He's had to adjust all of his prices recently because of this twenty first century gold rush.
It's actually tough because everything is more expensive like these chains used to cost us ten to fifteen dollars each and now it cost us like thirty-five, forty dollars.
Store mark ups have also cost the consumer big bucks, but what about our gold necklaces?
And that's fourteen karat gold. That's fifty eight percent gold divided by thirty one point one grams one point three grams of gold, one point three. It's going to be worth twenty dollars.
Twenty bucks. Not as much as we originally paid for the necklaces but good enough for our experiment. John predicts that we will not see a penny more than fifteen dollars a piece for our jewelry.
They tell you the value. So if they give you five bucks for a chain like this, they are trying to steal from you, basically that is the Cash for Gold Scam.
We took our three gold Jacksons and packaged them in the kits our three unknowing test subjects sent us. Within about a week it was payday. Cash for Gold USA dot com got back to us first and John's prediction was almost right on. A check for $15.50. Broken Gold dot com and Cash four Gold dot com soon followed, but their payout was near nuggets compared to their competitor. Five dollars and sixty cents from Broken Gold and five dollars and fifty two cents from Cash 4 Gold.
I will never say that we're the highest, we will pay the highest value
Howard Mofshin is the president of Cash 4 Gold dot com. He says the five dollar and fifty-two cent check we got from his company is a fair price.
We are again a service business where the service is part of what you are paying for and the ease of use and the ability not to have to travel and spend money on gas and not to pay for the packaging or mailing or any other anslery course that might be involved.
Mofshin says he is interested only in only in the melt value of the gold. As in how much the gold is worth if you melt it down to purify it.
In other words what the melt value does is I can only sell it based on what I can achieve from melting it. If I was to buy it as piece that I am going to resell as a piece and not melt it I could obviously pay more because I would be receiving a lot more.
Chad Sharpe, the president of Broken Gold dot com, also responded to our gold hunt saying that our fourteen karat gold necklace is to blame for the low pay out and "the results don't appear favorable to us as a company, but when you factor in the whole process, it is very difficult for us to make any profit (at that low of a weight). "We offer a 100 percent satisfaction guarantee where we send back the customer's jewelry at no charge to the customer."
Everybody can use some extra cash!
But before you run out to sell your family jewels at a premium price remember these little gold nuggets. Many jewelry stores and jewelry counters at department stores mark up the price of gold. Sometimes as much as four times the actual value. Don't be afraid to comparison shop. Some online companies like Gold for Cash will estimate your gold value over the phone so that you don't have to mail anything in. Finally buyers don't generally care about the artistic value or family history of jewelry. So if you have a priceless family heirloom it's probably best to hold onto it.
By the way Cash for Gold USA, the company that sent us that fifteen dollar check was pleased with their results. They wrote that they are whole heartily committed to customer satisfaction. We've put all of the companies statements on our website you can check them out for yourself.