Cash4Gold: Difference between revisions

Add links
Source: Wikipedia, the free encyclopedia.
Browse history interactively
← Previous editNext edit →
Content deleted Content added
VisualWikitext
Trident13 (talk | contribs)
103,559 edits
→‎United Kingdom: Like their US operations, Cash4Gold's valuations have been criticised through media investigation.
Trident13 (talk | contribs)
103,559 edits
→‎Controversy: ===UK controversy===
Line 65: Line 65:
After a [[whistleblower]] posted on ComplaintsBoard.com discussing the inner workings of Cash4Gold.com<ref name="whistleblower">{{cite web|url=http://consumerist.com/5144296/10-confessions-of-a-cash4gold-employee
After a [[whistleblower]] posted on ComplaintsBoard.com discussing the inner workings of Cash4Gold.com<ref name="whistleblower">{{cite web|url=http://consumerist.com/5144296/10-confessions-of-a-cash4gold-employee
|title= 10 Confessions Of A Cash4Gold Employee|accessdate=Sept 3 2009|date=Feb 2 2009|publisher= [[The Consumerist]]}}</ref>, [[The Consumerist]] and other blogs were hit with a defamation suit by Cash4Gold.com after running the postings.<ref name="Cash4Gold.combannedArticle"/><ref name="whistleblower"/><ref>Yahoo! Technology [http://tech.yahoo.com/blog/null/118748 "Beware Cash4Gold and other gold-buying ripoffs"] Null, Christopher</ref> In September 2009, Cash4Gold.com dropped Consumerist from their lawsuit.<ref>{{cite news|url=http://www.mainstreet.com/article/moneyinvesting/news/cash4gold-drops-lawsuit-against-bloggers|title=Cash4Gold Drops Lawsuit Against Bloggers|last=Seaman|first=David|date=2009-09-25|work=MainStreet|publisher=[[TheStreet.com]]|accessdate=2009-09-29}}</ref><ref>{{cite web|url=http://consumerist.com/5367209/cash4gold-drops-consumerist-from-lawsuit|title=Cash4Gold Drops Consumerist From Lawsuit|last=Ben|first=Popken|work=[[Consumerist]]|accessdate=2009-09-29}}</ref><ref>{{cite web|url=http://consumermediallc.org/files/consumeristdropped.pdf|accessdate=2009-09-29|title=Notice of dropping party|format=PDF|date=23 September 2009}}</ref>
|title= 10 Confessions Of A Cash4Gold Employee|accessdate=Sept 3 2009|date=Feb 2 2009|publisher= [[The Consumerist]]}}</ref>, [[The Consumerist]] and other blogs were hit with a defamation suit by Cash4Gold.com after running the postings.<ref name="Cash4Gold.combannedArticle"/><ref name="whistleblower"/><ref>Yahoo! Technology [http://tech.yahoo.com/blog/null/118748 "Beware Cash4Gold and other gold-buying ripoffs"] Null, Christopher</ref> In September 2009, Cash4Gold.com dropped Consumerist from their lawsuit.<ref>{{cite news|url=http://www.mainstreet.com/article/moneyinvesting/news/cash4gold-drops-lawsuit-against-bloggers|title=Cash4Gold Drops Lawsuit Against Bloggers|last=Seaman|first=David|date=2009-09-25|work=MainStreet|publisher=[[TheStreet.com]]|accessdate=2009-09-29}}</ref><ref>{{cite web|url=http://consumerist.com/5367209/cash4gold-drops-consumerist-from-lawsuit|title=Cash4Gold Drops Consumerist From Lawsuit|last=Ben|first=Popken|work=[[Consumerist]]|accessdate=2009-09-29}}</ref><ref>{{cite web|url=http://consumermediallc.org/files/consumeristdropped.pdf|accessdate=2009-09-29|title=Notice of dropping party|format=PDF|date=23 September 2009}}</ref>

===UK controversy===
Various UK media organisations have undertaken trails of Cash4Gold's UK service, and found their valuation greatly below the independently assessed fair market value. For instance, in November 2009, the [[BBC]]'s ''[[Newsbeat]]'' programme had gold valued by an independent gold bullion dealer in Mayfair, London at around £300. Three jewellers in [[Hatton Garden]] then offered similar amounts for the same collection; Cash4Gold's valuation cheque was for £63, raised to £100 when the researcher called to get their money back.ref>{{citeweb|url=http://news.bbc.co.uk/newsbeat/hi/the_p_word/newsid_10000000/newsid_10003300/10003337.stm|title=What's the 'true' value of your old gold?|publisher=BBC Newsbeat|date=Novermber 2009|accessdate=2009-12-09}}</ref>


==References==
==References==

Revision as of 14:45, 10 December 2009

Cash4Gold
Founded1 January 2007 Edit this on Wikidata
Headquarters
Pompano Beach, Florida
Websitewww.Cash4Gold.com

Cash4Gold is a Pompano Beach, Florida based division of Albar Precious Metal Refining headed by CEO Jeff Aronson,[1][2][3] and President Howard Mofshin. David Knight, SVP for international marketing and expansion, joined the team in 2009 from eBay.[4] The company serves as a mail-in refinery that buys gold, silver and platinum primarily from jewelry.[5] It is notable for advertising during Super Bowl XLIII in 2009.

Company Profile

Cash4Gold.com is a Pompano Beach, Florida based division of Albar Precious Metal Refining headed by CEO Jeff Aronson.

In 2006, Cash4Gold had sales of $40 million with 14 employees.[6][7] By May 2009, the company employed about 300 people with nearly 800,000 customer transactions.[8]

Process

Consumers request a free, pre-paid envelope known as a “Refiner’s Return Pak” online or by phone. Once it arrives, customers place their gold in the pack and ship it to the Cash4Gold headquarters in Florida.[8]

Cash4Gold employees weigh the items, photograph them, assess them and send the customer a check for the determined amount. Customers are given up to 12 days to ask for their jewelry back if they are not completely satisfied with the amount of their check.[8] According to the company, they pay between 20-80% of the melt value of the items to the seller, and generally less than a pawn shop would pay,[8] though independent reports suggest less than 20% of the value is the norm.[9][10] The norm for the gold-buying industry is for the seller to be paid more than 90% of the value of the gold.[8]

Cash4Gold melts between 3,000 to 4,000 fine ounces of gold and 800 pounds of silver a week.[8]

Advertising

Super Bowl XLIII advertisement

The Super Bowl XLIII advertisement featured Ed McMahon and MC Hammer, both who were well known for their financial troubles later on in their career.[11] The 30-second advertisement was produced by Super Bowl ad veteran Bryan Buckley and his Hungry Man Productions.[12] Sources place the cost for the 30-second advertisement at $2.4-$3 million.[2][5] Cash4Gold also played a 60-second ad in NBC's pre-game show, making it the first direct-response advertiser in that venue.[13]

The spot received considerable news coverage[2] and was praised for being particularly effective given the slowing economic situation in the United States at the time it aired.[14] CNBC’s Sports Biz blog touted the Cash4Gold spot as “the most relevant ad in this entire Super Bowl.”[15]

Sponsorships

Cash4Gold.com has signed sponsorships with Milwaukee Bucks [16], a multi-car sponsorship with JD Motorsports of NASCAR[17], Jim Dunn Racing of NHRA[18], and MMA competitor Randy 'The Natural' Couture.[19]

In addition to sponsorships of Randy Couture, Cash4Gold also sponsored his charity, the Xtreme Couture G.I. Foundation which honors veterans of the U.S. Armed Forces[20]

Cash4Gold sponsored MMA “Train the Troops” events at Camp Pendleton, Marine Corps Air Station Miramar and Marine Corps Air Station Yuma. The event brought professional MMA fighters together with Marines to help them prepare for deployment.[21] The three "Train The Troops" events were held at three Marine bases and included 12 pro fighters and trainers, as well as hundreds of Marines. There were six four-hour long training sessions. [22]

Related businesses

Cash4Gold launched a new division called “The Estate Buyer” which caters to individual selling high-end jewelry from brand-name manufacturers. Unlike Cash4Gold, “The Estate Buyer” does not base its offers on the melt value of gold in an item, but upon reselling the items.[23] It also offers a Spanish-language website called "OroPorDinero" which makes its services more accessible to Spanish speakers.[24]

United Kingdom

In July 2009, Cash4Gold launched their services in the United Kingdom, operating from secure processing sites in Sheffield,[25] and within the first month, they received over 4,000 packets [26] They have stated their intentions to become the UK's biggest direct response advertiser by the end of 2009,[27] targeting sales of £40 to £50 million for the first year.[28] Like their US operations, Cash4Gold's valuations have been criticised through media investigation.

The company is also creating UK-specific advertisements[29] that will feature a number of “recognizable” faces.[30] Cash4Gold and MC Hammer ran a competition in September 2009 for the UK public to name who they’d like to see as the next celebrity spokesman [31] The winner will have tea with MC Hammer and the new celebrity. [32] [33]

Controversy

There are many complaints that Cash4Gold undervalues jewelry sent to them by customers.[1] Channel 10 News in San Diego did an investigation where they sent in a ring containing over 2 grams of gold worth $17 in weight to three different sites. The payout from Cash4Gold was $7.91 [34]. Consumer Reports, using its "mystery shopper" team, sent 24 identical gold pendants and chains (purchased for $175 each) to Cash4Gold.com and its competitors. The determined melt value of the jewelry was calculated at around $70 each when gold was above $900 an ounce. In comparison with Pawn shop and Jewelry store quotes (which ranged from $25 to $50), Cash4Gold.com quoted between $7.60~$12.72 melt value for the jewelry. Similar low quotes were also given by Cash4Gold.com competitors GoldKit (around $7.81~$20.59) and GoldPaq (around $8.22~$13.11).[35]

After Rob Cockerham, a blogger, detailed drastic changes in Cash4Gold's valuation of jewelry after a complaint is made about an initial undervaluing,[36] a search engine optimization consultant offered "a few thousand dollars" for Rob to remove the criticism.[37] Cash4Gold CEO Jeff Aronson stated they had nothing to do with the incident, though the consultant stated "everyone (at Cash4Gold) was well aware of what was going on."[37] On Cash4Gold’s blog, the company afterwards posted a “clarification statement” allegedly by the consultant contradicting that quote: “Cash4Gold was not aware of all of the tactics being using (sic) in my reputation management services.”[38]

After a whistleblower posted on ComplaintsBoard.com discussing the inner workings of Cash4Gold.com[39], The Consumerist and other blogs were hit with a defamation suit by Cash4Gold.com after running the postings.[35][39][40] In September 2009, Cash4Gold.com dropped Consumerist from their lawsuit.[41][42][43]

UK controversy

Various UK media organisations have undertaken trails of Cash4Gold's UK service, and found their valuation greatly below the independently assessed fair market value. For instance, in November 2009, the BBC's Newsbeat programme had gold valued by an independent gold bullion dealer in Mayfair, London at around £300. Three jewellers in Hatton Garden then offered similar amounts for the same collection; Cash4Gold's valuation cheque was for £63, raised to £100 when the researcher called to get their money back.ref>"What's the 'true' value of your old gold?". BBC Newsbeat. Novermber 2009. Retrieved 2009-12-09. {{cite web}}: Check date values in: |date= (help)</ref>

References

  1. ^ a b Los Angeles Times blog "Beneath Cash4Gold's Shiny Veneer, A Dull Reality" February 5, 2009
  2. ^ a b c Bloomberg "Cash4Gold to Air Super Bowl Ad With M.C. Hammer and Ed McMahon" January 30, 2009
  3. ^ New York Times "Ads That Pushed Our Usual (Well Worn) Buttons" February 1, 2009
  4. ^ "Cash4Gold Hires New Senior Vice President". JC Online. August 5, 2009. Retrieved August 15, 2009.
  5. ^ a b Christian Science Monitor "Got Gold? Why TV ad men want yours" February 4, 2009
  6. ^ Entrepreneur magazine's Hot 500 Company Rankings - Albar Precious Metals Company Information
  7. ^ Inc.com "No. 271" Albar Precious Metal Refining 2007 Fastest Growing Private Companies in America
  8. ^ a b c d e f Florida Trend "Cash4Gold's Rush" Retrieved on 2009-7-13
  9. ^ "The Article Cash4Gold Doesn't Want You To Read". The Consumerist.
  10. ^ "Selling Your Gold? Read This First". CBS moneywatch.
  11. ^ USA Today "Cash4Gold Snaps Up A Spot For the Super Bowl XLIII ad" Retrieved on 2009-7-02
  12. ^ "Fast Monday: Cash4Gold Buys Super Bowl spot". MediaPost. Retrieved 2009-07-09.
  13. ^ Smart Brief “Super Bowl ad roster to include direct-response Cash4Gold” Retrieved on 2009-7-08
  14. ^ "Cash4Gold, Ed McMahon and MC Hammer". Time. Retrieved 2009-07-01.
  15. ^ Sports Biz “ Who Won the Super Bowl ad Game?” Retrieved on 2009-7-13
  16. ^ "Athletes Can't Box Out Recession". Wall Street Journal. Retrieved 2009-07-17.
  17. ^ Sports Business Daily “Wheels & Deals: Camping World To Remain Truck Series Sponsor” Retrieved on 2009-04-08
  18. ^ "Cash4Gold Joins Jim Dunn Racing". NHRA. July 30, 2009. Retrieved August 4, 2009.
  19. ^ "Cash4Gold to Sponsor Legendary Mixed Martial Arts Champion Randy 'The Natural' Couture in Upcoming Fights and Support Couture's Xtreme Couture G.I. Foundation". PR Newswire. August 28th, 2009. Retrieved September 4th, 2009. {{cite web}}: Check date values in: |accessdate= and |date= (help)
  20. ^ Michael J. Mooney. ""UFC Legend Randy Couture Gets Gold After Loss"". Broward Palm Beach. {{cite web}}: Unknown parameter |access date= ignored (|access-date= suggested) (help)
  21. ^ Tom Amenta (November 8, 2009). ""MMA stars "Train the Troops" at military bases in recent visits across the U.S."". MMA Junkie.
  22. ^ Lex McMahon (November 2, 2009). "Train The Troops MMA inaugural event a huge success". Five Knuckles. {{cite web}}: Unknown parameter |access date= ignored (|access-date= suggested) (help)
  23. ^ Luxist.com “Sell your Luxury Jewelry To the Estate Buyer” Retrieved on 2009-7-18
  24. ^ Infomercial Hell “Oro Por Dinero Cash4Gold.com Airs New Spanish and English Commercials” Retrieved on 2009-7-25
  25. ^ "Cas For Gold Postal Service Launched in the UK". Bitter Wallet. July 20, 2009.
  26. ^ Stephen Womack (August 23, 2009). ""The New Gold Rush Sweeping the UK"". This Is Money.
  27. ^ "Cash4Gold Boasts That it will be the UK's biggest Direct response Advertiser by the end of year…". Marketing Direct Magazine. 22 July 2009. Retrieved 08-06-09. {{cite web}}: Check date values in: |accessdate= (help)
  28. ^ Lorraine Turner, Reuters (October 26, 2009). ""Cash4Gold sees shiny future in European market push"". Times of Malter. {{cite web}}: |author= has generic name (help)
  29. ^ "Creatives wont like it but DRTV has a new champion in Cash4Gold's CEO Jeff Aronson". Marketing Direct Magazine. July 31, 2009. Retrieved 2009-08-07.
  30. ^ ""Cash4Gold negotiates UK celebrities ad campaign". Marketing Direct Magazine. August 3, 2009. Retrieved August 17, 2009.
  31. ^ "Cash4Gold asks public which celebrity should appear in advert". UTalkMarketing. {{cite web}}: Unknown parameter |access date= ignored (|access-date= suggested) (help)
  32. ^ Darren Davidson (September 2009). ""MC Hammer fronts UK Viral for Cash4Gold"". Marketing Direct Mag.
  33. ^ ""MC Hammer stars in Cash4Gold viral"". The Guardian. September 14, 2009.
  34. ^ I-Team Puts Gold Buyers To The Test - 10News I-Team Investigations Story - KGTV San Diego
  35. ^ a b "The Article Cash4Gold Doesn't Want You To Read". The Consumerist. Sept 1, 2009. Retrieved Sept 3 2009. {{cite web}}: Check date values in: |accessdate= and |date= (help)
  36. ^ "Cash4Gold Will Offer One-Third of the Actual Value for your Gold". Retrieved 2009-02-09.
  37. ^ a b MSNBC "Blogger: Cash4Gold tried to 'bribe' me" February 6, 2009
  38. ^ Cash4Gold blog “Response to Laratro Quote in MSNC”
  39. ^ a b "10 Confessions Of A Cash4Gold Employee". The Consumerist. Feb 2 2009. Retrieved Sept 3 2009. {{cite web}}: Check date values in: |accessdate= and |date= (help)
  40. ^ Yahoo! Technology "Beware Cash4Gold and other gold-buying ripoffs" Null, Christopher
  41. ^ Seaman, David (2009-09-25). "Cash4Gold Drops Lawsuit Against Bloggers". MainStreet. TheStreet.com. Retrieved 2009-09-29.
  42. ^ Ben, Popken. "Cash4Gold Drops Consumerist From Lawsuit". Consumerist. Retrieved 2009-09-29.
  43. ^ "Notice of dropping party" (PDF). 23 September 2009. Retrieved 2009-09-29.

External links

Retrieved from "https://en.wikipedia.org/w/index.php?title=Cash4Gold&oldid=330873472"