a CASH FOR GOLD scam that was scamming the gold buyer.

cyberdan

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Dec 12, 2006
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I posted this on another forum and just ran across the post. Thought you might enjoy.
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Last saturday one of my last yardsale stops was a trailer park community wide yardsale. All vendors were setup in one place. One of the vendors was a CASH FOR GOLD type buyer, she also lived in the park. I played it dumb and started talking to her. It only took a minute to tell she was VERY new to the game. But, she had a big professionally made banner and several bottles of testing acids and a powerful loupe.

I didn't have the heart to tell her she was being scammed but I hinted. She is a new member of The Gold Refinery and she paid her $300 to get there. They gave her a sign, business cards, the loupe, the acids and some training. She hosts gold parties too. She told me if someone brings in too much gold and she does not have enough cash "thegoldrefinery" send a runner with the needed money. She also said they keep pushing her to "recruit" new buyers because she will make money on what they buy. RED FLAG TIME!!! I asked if this was multi-level-marketing and she said yes. So I had to be nosey and ask how much they paid her. She was proud that she gets 10% of all buys.

I told her about 14K never being 14K and she had never heard that before, also electronic testers which they didn't tell about either. (I wonder if the acids are properly marked to read low?)
 

Dan,

I had a chance to buy some old...I mean, OLD, dental crown gold. The Pics show with the tooth intact and after a finishing hammer cleared them out....
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I checked one business the owner is known to go to get a current gold price they pay. The jewelry store lady said they buy gold, but at scrap prices.... How much for 14kt and 10kt? She said, "Well, let me look. Gold is at $1160, so we pay $10.75 for 14kt and about $10.00 for 10kt." Is that per gram or pennyweight? She said, "Oh, that's Pennyweight!".....

Now that's pretty low for buying gold, don't you think?

Bill
 

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The value at 1160 oz & all 14K is $265.44
I do not know anything about dwt. I taught myself on grams.

I too have some old teeth to melt down someday. some test 18K one is krap and one tests plat.
You should see the cavity in one of those. They were in a bulk deal I got last year.
 

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Bill/Dan,

Suggest you check out Kitco for their scrap gold/silver, etc....they only buy from companies though.

It'll give you a good idea if you're getting a fair price or not.

Regards + HH

Bill
 

Lol I wouldn't worry about Dan he knows if he's getting a fair price or not. Lol Keep Stacking
 

You guys made me get more educated here! I'd never spoken the language of drams and pennyweights! So I had to go figure out the conversions!

Thanks!
 

so we pay $10.75 for 14kt and about $10.00 for 10kt."[/I] Is that per gram or pennyweight? She said, "Oh, that's Pennyweight!".....
Now that's pretty low for buying gold, don't you think?

Using my new found larning, she's paying $10.75 for $50 worth of gold.
 

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