Here in the UK there is a massive drive to get people to sell their 'spare' gold. From what I can gather this is also happening in the US.

We are told that Gold is at its highest price and now is the time to get the best deal.

Nonsense.

The buyers have nothing to gain by buying gold when it is at its most expensive - buy cheap sell high is the norm in business - the future demand for gold is certain to go up if/when our imaginary currencies collapse - gold retains it value.

Advice if you have any gold, keep it.

Originally posted by sinthia
Advice if you have any gold, keep it.

Now that is the best advice I have heard
on ATS in a while.

A smart play

Yes for the past yr or so I have seen
ads on TV wanting folks to sell all
their physical gold. Just send it to
us by mail and we'll mail ya a check
for it. What a crock !!!!

when the monetary collapses
it will be ur only source of
arbitration.

Only fools separate themselves
from their gold

S&F

A lot of this "sell your gold" drive is internet marketing based and a lot of the companies buying gold over the internet in the last couple years are paying people less than they would get at a local pawn shop.

It's pretty much a massive scam. That said, hang on to your gold.

I guess I should add ... these companies are buying low and selling high

[edit on 30-5-2010 by area6]

The business is very simple. people hear that price of gold is high, and these sharks tell them they can get a good money price now for their unwanted jewellry

here is the example

someone sends 5oz of 18 Ct Gold rings , chains, earrings etc

the value of gold is as of today, spot rate around $1250 per oz

5oz = 141.75g x $30.1446 (scrap rate) = $4272.98 - 25% = $3204.73 (for price per purity) minus 75% standard porn (I mean PORN not Pawn as it is obscene) broking rate = $801

So the person gets $800, now who could use $800?????? just for some old crap you don't wear.

OK. there's more. the porn broker doing this usually has a deal with a refining place, of they do it them selves.

5oz of 18 Ct is 75% pure.

so that is around 106g of PURE .999 gold. but OK lets say some if lost in the refining process average 5 % loss rate. That is still 99.225g of Pure Gold.

That is still 3 1/2 onces of pure .999 gold in rough cast bars. rounds whatever

Current resale price is around spot +15% ($1370) prices I saw today on the likes of Kitco and Goldline.

This equals resale price $4795. and people WILL and DO Pay it

But lets be more accurate, processing costs money too. So lets say that 50% of the total resale price goes on refining. No way is it going to be this high, but this is for example.

= $2397.50 remaining
minus the outlay lost of $800
= $1597.5 and easily more PURE SOLID GOLD PROFIT.

Just from 1 person sending in 5 oz of unwanted crap, they get a happy 800 dollars, although I suspect it would be MUCH less. as I am being honest.

And the company makes over 1500 dollars on 3!!, on 3.5 ounces of gold.

How times this by a factor of 10,000's if not 100,000's of people doing this WORLDWIDE to these companies!!

you get the drift!!, this is NOT buy low sell high. as that does not even matter.

This is just talking advantage of people NEED and GREED to for them to make a quick buck, and the copanies to make even more.

As you say, gold holds it value, people know that, they need money, and now there is a real market and need. On the back end there is LOTs of people buying the result in bars, coins etc etc etc. because it holds its value.

Lets just say that this is the real wealth re-distribution.






[edit on 30/505/1010 by JakiusFogg]

[edit on 30/505/1010 by JakiusFogg]

i'm more of the opinion they're (the buyers) are in the know and are aware of potential forthcoming events and knowing that gold retains its vaalue probably consider it a low risk deal. So if anything does happen they have the gold for bargaining etc, and if not they have gold......

The other thing i'm thinking (the more insane theory) is that the goverment need it for the nibirubians as i call them, as we should have been mining it for them since they left the planet!!.

That's a pretty in depth reply JakiusFogg, which explains the economics well.

It just seems strange and suspicious the sudden drive which is literally everywhere all of a sudden.

Another bit of info I found interesting. I make get this a little wrong so if someone has better info then please correct me. There is a program in the UK called QI (Quite Interesting) and they said that by weight, mobile phones have a higher pure gold content than gold 'ore'. As I said I might have got the point wrong, but there is also big interest in buying old mobile phones in the uk? Gold content?

Originally posted by greeny122229
i'm more of the opinion they're (the buyers) are in the know and are aware of potential forthcoming events and knowing that gold retains its vaalue probably consider it a low risk deal. So if anything does happen they have the gold for bargaining etc, and if not they have gold......

The other thing i'm thinking (the more insane theory) is that the goverment need it for the nibirubians as i call them, as we should have been mining it for them since they left the planet!!.

I totally agree with your statement!! They are trying to take away your future means of barter.

Its this simple...These brokers are giving their "customers" american dollars for something that has real value... I have an odd feeling that us here in america still thinks the dollar has an all mighty value... I will never give them my gold for their monopoly money.... no pun intended... Wake up people its a gold grab hands down. Its aimed at those that can barely make ends meet. Thats the majority I believe... "So if i give u my broken gold that i have no use for anymore you will give me cash? Sure sounds good." Ha! biggest con job in a few years. Once hey have no gold when the dollars collapses they have nothing to barter of establish themselves with. Then that hidden hand will be the helping hand doling out their credits as they sell their sole to "Big Brother". Just my buck fifty on the recent events concerning gold.

You'll do better by hoarding things people will need...tools, water and food...gold wont mean anything....