By JLP | February 11, 2009
If you watch any TV at all, you have probably seen the Cash4Gold commercials like this one:
I remember thinking the first time I saw the commercial. “Yeah, riiiiiiight…I’m going to send them my jewelry and trust them to send me back a fair dollar amount.”
I was quite skeptical (skepticism is in my genes).
It turns out that my skepticism was warranted according to this article I read in the Houston Chronicle.
The article talks about how CBS Inside Edition sent Cash4Gold 23 pieces of jewelry that were valued at around $1,000. They got back a check for $209.81. Granted, Cash4Gold is not appraising for market value but for salvage value (or content value). Still, the commercials are highly misleading because some of the people are saying stuff like, “I was able to take the vacation of a lifetime.”
Think about it. If Cash4Gold is only paying out 20% of what the jewelry is worth, and that woman took a $5,000 vacation (I pulled the number out of thin air), she would have to have $25,000 worth of old jewelry sitting around. That’s a lot of jewelry.
Also according to the article, people who aren’t happy with their check amounts are having a difficult time getting their jewelry back. Ya think? If you send a company your jewelry, who do you think is in the driver’s seat?
Sometimes it pays to be skeptical.