The cash for gold industry is one that has seen a tremendous amount of growth in the last few years, one that some people call outrageous. It has been caused by the economic downturn, which has significantly caused a rise in the price of gold. As with any industry, as it sees growing success, many different businesses open, hoping to jump onto the bandwagon of success.
In the last few years, there has been an influx in new pawn shops, cash for gold companies, and jewelers offering to buy gold. Many view the industry as controversial, and for good reason. Although some are honest and pay customers the value of their gold, most average consumers know nothing about how much their gold is worth, and get cheated out of money that is rightfully theirs. A new step in the industry is large retailers who are using cash for gold as a lure for customers.
CNBC recently reported that Sears and Kmart, who are owned by one company, are placing cash for gold boxes in stores, where people can cash in their gold on the spot. These two stores are not doing well, so this ploy is in the hopes that customers will shop at Sears and Kmart, and use the cash on purchases in the store. Some view it as smart marketing, while others condemn the practice as using a crooked method to make consumers buy.
Another controversial cash for gold method involves the opening of a pawn shop that buys gold near a casino. Some wonder if the shop is owned by the casino, which hopes that customers will spend their cash at the casino. The pawn shop in question was opened in Philadelphia, across from Sugarhouse Casino. Neighbors are trying to prevent the opening of the store, saying that businesses such as these were what they feared when the casino first opened. In the ensuing feud, a stop work order has been posted in the window of the store. By law, a store such as this one may not open within fifteen hundred feet of a casino.
The cash for gold industry is controversial for numerous reasons. Using cash for gold as a draw for customers takes it to a whole new level. Some metal refiners are honest, and really do give sellers their money’s worth. Selling online is a risk, but is the most convenient method for most people. Consumers who would like to sell gold online should be sure to research the site’s credentials and track record before sending in their gold. It is also important to read the fine print on the site.
Selling gold is not for everyone, but money can be made on the deal. It remains to be seen whether the government will allow the practice of large retailers making use of the cash for gold industry for their own purposes.