Warning: Cash for Gold Stores Seem to be Lowering Payouts

We want to issue another warning to our potential customers. These Cash for Gold stores that are popping up on every corner are probably not your best choice for selling scrap gold.

We had an appointment with a client this week, and since this tends to be a busy time of year, we couldn’t meet with her immediately. She used the time to do some comparison shopping – unbeknownst to us. After assessing her items – one was fake, even though it was stamped 14KT – we gave her an offer of $470. She was very pleased and accepted at once. She then informed us that she had shopped her items at a couple of places as she waited for the appointment. We were very glad she had done so since we know we offer fair prices and are not beat very often on price.

We wanted to try to see how we compared, so we ventured a guess that they had been somewhere in the range of $350. She shook her head and we asked if they were higher than that. She informed us that they were lower. Much, much lower. She informed us that the best price she had been quoted was $180. That’s about a third of what we paid her. Unbelievable.

We aren’t sure how many stores she visited, or which ones, but that is a ridiculously low offer, even for them. With all the competition, we can’t believe that these Cash for Gold stores are reducing their payouts. The only thing we can figure is that they are so hard up that they are trying to make a killing at the expense of every single person who walks through their doors.

We haven’t changed though. We are still offering the same fair and transparent pricing that we have used since we started our business several years ago. If anything, we are paying more now than before the price of gold jumped up so high. We do our best to treat everyone fairly and want you to walk away from any transaction with us feeling good about it. It appears that is not how everyone in the business treats their clients.

It’s Gold Party Season

Host a Gold Party

Hosting a Gold Party is a great way to spend time with your friends. The best part – a Gold Party can actually make you money.

It’s that time of year again – Gold Party Season! Historically, November is our busiest month for Gold Parties, with December a close second.

We just wanted to remind everyone about this exciting opportunity. Gold Parties are often an easy sell with your friends and coworkers. Instead of asking them to come spend money, they actually can leave with more money than they walked in with. And, as the host, there is a 10% commission for you at the end of the day. Last November, our two highest producing parties earned over $700 each for the hosts – and that didn’t even include the gold they sold themselves. Not bad for a few hours spent with your friends!

Even if you have already sold all of your own gold, you can still host a Gold Party to help friends, family and coworkers sell theirs. We have done parties in private homes, in the workplace and even as part of fundraising events. We are flexible and can help you plan and prepare the type of event that fits your needs.

There is also the opportunity to combine the Gold Party with another event, if you like. We have worked parties in the past with Silpada Jewelry, Scentsy Candles and a variety of others. We find that many of your guests will take the proceeds from the sale of their gold and put it right back into the purchase of these other products. It’s a win-win situation for everyone!

If you are interested in hosting a Gold Party, please let us know as these slots fill up fast this time of year. We look forward to hearing from you soon!

Why are there so many Cash For Gold stores popping up?

Have you noticed the recent proliferation of Cash For Gold stores? It seems that any vacant restaurant or empty space in a strip mall is fair game. It has to be one of the fastest growing segments in the economy.

Surely, real estate leasing agents are happy to have the business. They get to rent out unused space. And many of these shops are spending a ton of money on big flashy signs, expensive furniture and staff. But you have to ask yourself where that money is coming from. Obviously, as consumers, we know that the owners aren’t biting the bullet on this. Many of them are making money hand over fist by offering low payouts, using shady business practices (fudging test results, using inaccurate scales and just generally confusing the issue) and generally trying to take their clients for everything they can.

That’s not to say that there aren’t legitimate scrap gold buyers out there. We consider ourselves to be an example of just those people. And we don’t deny that there is a definite need for this service. Times are still tough, the economy is still bad and some people really need some extra cash to try to ride out the storm. That’s one of the reasons that we are in the business – it is a legitimate service when it’s done right. Unfortunately, there are a lot of shady characters who are looking to get rich quick – all at your expense. And that’s bad for everyone.

This is truly a case of buyer beware. If you do decide to visit a Cash For Gold store, make sure to do your homework first. Be sure to review our information on How to Sell Gold. Or, give us a call at 816-718-5251. We will be happy to help you out.

$750,000 in gold purchased – another company milestone

We are happy to announce that we just hit another company milestone: South Kansas City Gold Buyer has now purchased $750,000 worth of gold. That’s right, 3/4 of a million dollars worth of gold bought here locally in Kansas City.

Again, we have a lot of pride in the way we’ve done it – by being up-front and honest with our clients. And our payouts are fair and far above what is common in Kansas City. While many of these “Cash For Gold” stores are paying somewhere in the range of 30-45% of the value for your gold (or less), over the last three years South Kansas City Gold Buyer has averaged well over 60%.

As mentioned last time, many people often remark on the fact that they choose us via the Better Business Bureau web site. They notice that we have no Unresolved Complaints. But what isn’t obvious from the BBB site is that we don’t have any Resolved Complaints, either. Because we do our level best to make the process as transparent as possible, our customers simply have no reason to complain the BBB.

We look forward to continuing to serve the Greater Kansas City Metro area for a long time to come.

Cash for Gold Scam | False Acid Test

Avoid getting scammed by a false gold acid test.

Cash for Gold is a big business, and getting bigger all of the time. Unfortunately , with the high price of gold, there is a huge draw for unscrupulous operators who are constantly coming up with new Cash for Gold scams. One of the current ways to scam clients is by incorrectly using an acid test on the scrap gold. Read on to see how you can avoid this scam.

How this Cash for Gold scam works.

Basically, scrap gold test acid is sold in small bottles that are marked corresponding to the karat value of the gold you want to test. If you believe you have 14kt gold, you use the 14kt acid, and so on. The acids are generally sold in test kits to test for 10kt, 14kt, 18kt and 22kt gold. If you use a higher valued acid, say 18kt acid on 14kt gold, the gold will dissolve. Lower valued acid will discolor the gold. If the acid and the gold match, there is no reaction.

In order to scam the gold seller, the buyer will use a stronger acid, either by using the wrong type or by putting stronger acid into a bottle marked with a lower value. So they will test your 14kt gold with 18kt acid. When it dissolves, they will tell you that your item is marked incorrectly or under-karated and that they will only pay the 10kt price for your scrap. This is usually accompanied by a practiced speech on the untrustworthiness of jewelry makers. An unsuspecting client will often believe that they were the victim of a scam when they bought the jewelry, not suspecting that they are in the middle of a gold buying scam.

How to avoid this Cash for Gold scam.

We sometimes find jewelry that is marked as 14kt that is a complete fake; in reality it is a copper and zinc mixture. However, it is extremely rare to find something made of a lower purity gold that is marked higher. If the jewelry maker is going to scam you, and risk prison, why would he use any gold at all? If any Cash for Gold buyer claims your gold is lower quality than what it’s marked, get a second opinion. Don’t take their word for it.

Also be aware that the acid test is an inexact science. It won’t accurately test other odd values. As an example, we recently met a lady from Great Britain, where 9kt and 15kt jewelry is common. The acid test kits don’t allow for those variations.

Bottom line: If something seems fishy, walk away.

Buyer Beware! Avoid the hype when you sell gold.

Don't get taken in by the hype when you sell gold

As we were driving through town today, we passed two billboards for a company that has opened three Cash for Gold locations here in Kansas City. What catches your attention is the statement that you can get “Get Up to 3X More!” when you sell your gold to them. So this begs the question: Three times more than what? Three times more than they want to pay you? Three times more than they used to pay, back when they were really fleecing people? Three times more than the scoundrel who is paying a price so low it’s criminal? There’s just no context for the statement.

This highlights one of the main problems with our industry: A tendency to try to confuse the client. Whatever you want to call it – sleight-of-hand, the old razzle-dazzle, the bait-and-switch, whatever – the purpose is to keep the mark confused and off guard, so that he walks away wondering what just happened. We consider that to be unethical, and we don’t do business that way.

When we meet with you, we want you to sell your scrap gold with confidence. That’s why we test and weigh everything in front of you. We have a gold price calculation program on our laptop that spells out how much scrap you have, the gold content of the various karat types and the exact amount and percentage of melt value we are offering. And since we start our offers at 60% and go up from there, there’s no way anyone is paying you three times more than we do.

Another Milestone – We’ve purchased a Half Million Dollars worth of Gold

We are pleased to report that we just hit another company milestone: South Kansas City Gold Buyer has now purchased $500,000 worth of gold. That’s right, half a million dollars worth gold bought here locally in Kansas City.

We are especially proud of the way we’ve done it – by being up-front and honest with our clients. Many people often remark on the fact that they choose us via the Better Business Bureau web site. They notice that we have no Unresolved Complaints. But what isn’t obvious from the BBB site is that we don’t have any resolved complaints, either. Because we do our level best to make the process as transparent as possible, our customers simply have no reason to complain the BBB.

We look forward to continuing to serve the Greater Kansas City Metro area for a long time to come.