6 ms·

How Cash4Gold Works - From a Former Employee

50 points by releasedatez 18y ago

savrajsingh 18y ago
how is this allowed to continue?
- jonknee 18y ago
  What law are they breaking? The only way they get stopped is because it's mostly used for fencing. People with legitimate assets go ahead and get a better price at local pawn shops.
- axod 18y ago
  For as long as there are stupid and desperate people out there I'd say. I don't see anything they are doing that is illegal - though obviously a pretty bad scam.
Brushfire 18y ago
I hate to say this -- but who didnt know this was a scam? This is like many late night tv infomercials on a variety of topics. Clearly, the issue is that you GIVE them your stuff before they tell you the value. Its part of their system, but its also the key part in the scam. F- To Cash4Gold, but its no worse than all the other scam companies out there. If it sounds too good to be true, it is.
- trjordan 18y ago
  It's a lot harder to believe that a company with a Superbowl ad is an out-and -out scam. At least in my mind, I tend to assume that if they make it to that level, they're legit.
  - stcredzero 18y ago
    Like a lot of the original dot.coms?
  - zealog 18y ago
    Like if you're as rich as Bernie Madoff you must be legit? You do realize that the "con" in "con man" comes from the word confidence, right? The most important thing for any scam to work is building confidence. What better way than with celebrity-ish pitch men and a Superbowl ad?
- swombat 18y ago
  Probably the people who watched the superbowl commercial? http://www.youtube.com/watch?v=I-HmD3A0GzY http://www.youtube.com/watch?v=I-HmD3A0GzY The superbowl advertising sales department should probably be fired.
  - Brushfire 18y ago
    I had no idea they were that big. Wow. Admittedly, I don't watch the super bowl or have cable, but still, even with big marketing dollars this still screams scam to me. The fact that they can afford a super bowl ad just proves the effectiveness of their scam. Its kind of interesting as a case study, as long as no one I know, like, or care about does business with them.
  - noodle 18y ago
    on the flip side of that coin, superbowl ads were going for super cheap this year, and i bet they had to scrape bottom, dredging up these guys, just to fill up the slots.
    - jonknee 18y ago
      Actually they sold a record amount of ad revenue ($206m), so no they weren't going for super cheap. They had a few last minute cheaper spots, but we're still talking the $2.4m range.
- aardvark 18y ago
  Who doesn't know? Well, my five-year-old is fascinated by these commercials. Of course, he doesn't have any gold to sell, but still... Actually, I've used it as a good learning experience for him. "Don't believe everything you see on television." Now he wants to make his own TV commercial to warn others!
- JacobAldridge 18y ago
  This is why I love cockeyed.com. Not only did he draw attention to the scam [1], he was actually offered money to take down that page - and printed Cash4Gold's contact with him in full [2]. But my favourite (related) article was when turned the scam around on Gold Kit (similar deal) and sent them junk he had spray painted gold. [3] Fun. [1] http://www.cockeyed.com/citizen/goldkit/cheat.shtml http://www.cockeyed.com/citizen/goldkit/cheat.shtml [2] http://www.cockeyed.com/citizen/goldkit/reputation.shtml http://www.cockeyed.com/citizen/goldkit/reputation.shtml [3] http://www.cockeyed.com/citizen/goldkit/gold_kit02.shtml http://www.cockeyed.com/citizen/goldkit/gold_kit02.shtml
bprater 18y ago
"I guess this guy has posted this a few other places around the internet but I thought it was pretty good info that should be passed on." Really? Why not just link to one of the many exact duplicates of what you posted, then? Trying to get some Google love? I'm tempted to flag this except that some Hackers may be interested in the story itself.
- sgoraya 18y ago
  My sentiments exactly, but its shoemoney just doing his thang! I read his site regularly and there is usually good/great info regarding ad networks/SEO in general, but there is the occasional 'trying to get some google love' post.
  - releasedatez 18y ago
    Just want to clarify, I am not in any way related to shoemoney. I just read his blog everyday and thought these are some good info to share.
- deleted 18y ago
  [deleted]
sachinag 18y ago
I'm so glad that $40 million went into this company essentially the second before the backlash hit a fever pitch. Problem is that the local news stations that would ordinarily have a field day with this story aren't going to report it because the C4G ads are highly lucrative in this economy.
drewcrawford 18y ago
Blogspam? Earliest copy of this I could find was http://www.complaintsboard.com/complaints/cash4gold-c117648.html http://www.complaintsboard.com/complaints/cash4gold-c117648.... From there it was picked up by The Consumerist... after that I lose track.
kiba 18y ago
Turning gold into cash should be the last thing people do. Unlike the US dollars, gold can't simply be mined fast enough to reduce its values. Whereas with the US dollar, the US federal reserve can just print it, literally. Gold is the money of the future, especially when the economic system finally collapse. Gold has been money for thousand of years for good reason. Unless there are better form of money in a free market, gold is the best choice. Horde some of it.(Of course, don't convert your entire saving into gold, that's stupid.) It may leave you one of the last guy with real wealth after an economic collapse. It is the cork that float in an ocean of economic uncertainly. This is of course, assuming that the government managed to outrun our economic productive capacity.
- tjic 18y ago
  > gold can't simply be mined fast enough to reduce its values No, but people's DESIRE for gold can change quite quickly. Gold can lose value very very fast if people decide that a given national currency is going to be inflation-free - they would rather have their wealth in a liquid form, and sell the gold for cash, thus driving down the price of gold. Why did housing prices crash over the last year? Was it because so many houses were created in 12 months? No, it was because people's estimation of the value of houses went down, due to new and better information. Gold is certainly not immune to such effects.
  - watmough 18y ago
    One of the interesting things that has happened lately is a drop in gold imports to India. The price has gotten so high, that India would rather become a net seller of gold. Kind of an interesting dynamic.
  - katz 18y ago
    > No, but people's DESIRE for gold can change quite quickly. Whether or not people's desire for gold and PGMs change or not - they will still desire products that use PGMs (e.g. catalytic converters). Gold has some awesome properties. Also - the desire for gold is 1000's of years old. Until women will be happy with a plastic engagement ring gold will remain valuable. > Why did housing prices crash over the last year? Was it because so many houses were created in 12 months? No, it was because people's estimation of the value of houses went down, due to new and better information. I thought it was because loans were given too easily (i.e. too much money in circulation). > Gold is certainly not immune to such effects. The reason why some people prefer gold as a store of value is because the government can't use inflation to rob you of your money. Inflation occurs always when the government prints more money and it serves as a hidden taxation. In the course of history a lot of governments printed money in order to finance its numerous social experiments (Germany, Zimbabwe, etc...) The problems in Zimbabwe could have been averted if the government was forced to back their currency (partially) by gold. Whether or not gold should be used as a medium of exchange is up to debate. The bigger question is: What gives you confidence in the value of a dollar?* * substitute dollar with your local currency of choice (pound, Australian dollar, Euro, Zim dollar, rand, etc...)
DanielBMarkham 18y ago
This just in -- TV infomercials routinely exaggerate the benefits of their products and services. I hate to sound flip, but -- so what? This (in my book) does not count as interesting or new.
dotmatrix 18y ago
Hahaha, gotta love the cash4gold banner ad below the flame!

50 points by releasedatez 18y ago

savrajsingh 18y ago

how is this allowed to continue?

jonknee 18y ago
What law are they breaking? The only way they get stopped is because it's mostly used for fencing. People with legitimate assets go ahead and get a better price at local pawn shops.
axod 18y ago
For as long as there are stupid and desperate people out there I'd say. I don't see anything they are doing that is illegal - though obviously a pretty bad scam.

Brushfire 18y ago

I hate to say this -- but who didnt know this was a scam? This is like many late night tv infomercials on a variety of topics. Clearly, the issue is that you GIVE them your stuff before they tell you the value. Its part of their system, but its also the key part in the scam. F- To Cash4Gold, but its no worse than all the other scam companies out there. If it sounds too good to be true, it is.

trjordan 18y ago
It's a lot harder to believe that a company with a Superbowl ad is an out-and -out scam. At least in my mind, I tend to assume that if they make it to that level, they're legit.
- stcredzero 18y ago
  Like a lot of the original dot.coms?
- zealog 18y ago
  Like if you're as rich as Bernie Madoff you must be legit? You do realize that the "con" in "con man" comes from the word confidence, right? The most important thing for any scam to work is building confidence. What better way than with celebrity-ish pitch men and a Superbowl ad?
swombat 18y ago
Probably the people who watched the superbowl commercial? http://www.youtube.com/watch?v=I-HmD3A0GzY http://www.youtube.com/watch?v=I-HmD3A0GzY The superbowl advertising sales department should probably be fired.
- Brushfire 18y ago
  I had no idea they were that big. Wow. Admittedly, I don't watch the super bowl or have cable, but still, even with big marketing dollars this still screams scam to me. The fact that they can afford a super bowl ad just proves the effectiveness of their scam. Its kind of interesting as a case study, as long as no one I know, like, or care about does business with them.
- noodle 18y ago
  on the flip side of that coin, superbowl ads were going for super cheap this year, and i bet they had to scrape bottom, dredging up these guys, just to fill up the slots.
  - jonknee 18y ago
    Actually they sold a record amount of ad revenue ($206m), so no they weren't going for super cheap. They had a few last minute cheaper spots, but we're still talking the $2.4m range.
aardvark 18y ago
Who doesn't know? Well, my five-year-old is fascinated by these commercials. Of course, he doesn't have any gold to sell, but still... Actually, I've used it as a good learning experience for him. "Don't believe everything you see on television." Now he wants to make his own TV commercial to warn others!
JacobAldridge 18y ago
This is why I love cockeyed.com. Not only did he draw attention to the scam [1], he was actually offered money to take down that page - and printed Cash4Gold's contact with him in full [2]. But my favourite (related) article was when turned the scam around on Gold Kit (similar deal) and sent them junk he had spray painted gold. [3] Fun. [1] http://www.cockeyed.com/citizen/goldkit/cheat.shtml http://www.cockeyed.com/citizen/goldkit/cheat.shtml [2] http://www.cockeyed.com/citizen/goldkit/reputation.shtml http://www.cockeyed.com/citizen/goldkit/reputation.shtml [3] http://www.cockeyed.com/citizen/goldkit/gold_kit02.shtml http://www.cockeyed.com/citizen/goldkit/gold_kit02.shtml

bprater 18y ago

"I guess this guy has posted this a few other places around the internet but I thought it was pretty good info that should be passed on." Really? Why not just link to one of the many exact duplicates of what you posted, then? Trying to get some Google love? I'm tempted to flag this except that some Hackers may be interested in the story itself.

sgoraya 18y ago
My sentiments exactly, but its shoemoney just doing his thang! I read his site regularly and there is usually good/great info regarding ad networks/SEO in general, but there is the occasional 'trying to get some google love' post.
- releasedatez 18y ago
  Just want to clarify, I am not in any way related to shoemoney. I just read his blog everyday and thought these are some good info to share.
deleted 18y ago
[deleted]

sachinag 18y ago

I'm so glad that $40 million went into this company essentially the second before the backlash hit a fever pitch. Problem is that the local news stations that would ordinarily have a field day with this story aren't going to report it because the C4G ads are highly lucrative in this economy.

drewcrawford 18y ago

Blogspam? Earliest copy of this I could find was http://www.complaintsboard.com/complaints/cash4gold-c117648.html http://www.complaintsboard.com/complaints/cash4gold-c117648.... From there it was picked up by The Consumerist... after that I lose track.

kiba 18y ago

Turning gold into cash should be the last thing people do. Unlike the US dollars, gold can't simply be mined fast enough to reduce its values. Whereas with the US dollar, the US federal reserve can just print it, literally. Gold is the money of the future, especially when the economic system finally collapse. Gold has been money for thousand of years for good reason. Unless there are better form of money in a free market, gold is the best choice. Horde some of it.(Of course, don't convert your entire saving into gold, that's stupid.) It may leave you one of the last guy with real wealth after an economic collapse. It is the cork that float in an ocean of economic uncertainly. This is of course, assuming that the government managed to outrun our economic productive capacity.

tjic 18y ago
> gold can't simply be mined fast enough to reduce its values No, but people's DESIRE for gold can change quite quickly. Gold can lose value very very fast if people decide that a given national currency is going to be inflation-free - they would rather have their wealth in a liquid form, and sell the gold for cash, thus driving down the price of gold. Why did housing prices crash over the last year? Was it because so many houses were created in 12 months? No, it was because people's estimation of the value of houses went down, due to new and better information. Gold is certainly not immune to such effects.
- watmough 18y ago
  One of the interesting things that has happened lately is a drop in gold imports to India. The price has gotten so high, that India would rather become a net seller of gold. Kind of an interesting dynamic.
- katz 18y ago
  > No, but people's DESIRE for gold can change quite quickly. Whether or not people's desire for gold and PGMs change or not - they will still desire products that use PGMs (e.g. catalytic converters). Gold has some awesome properties. Also - the desire for gold is 1000's of years old. Until women will be happy with a plastic engagement ring gold will remain valuable. > Why did housing prices crash over the last year? Was it because so many houses were created in 12 months? No, it was because people's estimation of the value of houses went down, due to new and better information. I thought it was because loans were given too easily (i.e. too much money in circulation). > Gold is certainly not immune to such effects. The reason why some people prefer gold as a store of value is because the government can't use inflation to rob you of your money. Inflation occurs always when the government prints more money and it serves as a hidden taxation. In the course of history a lot of governments printed money in order to finance its numerous social experiments (Germany, Zimbabwe, etc...) The problems in Zimbabwe could have been averted if the government was forced to back their currency (partially) by gold. Whether or not gold should be used as a medium of exchange is up to debate. The bigger question is: What gives you confidence in the value of a dollar?* * substitute dollar with your local currency of choice (pound, Australian dollar, Euro, Zim dollar, rand, etc...)

DanielBMarkham 18y ago

This just in -- TV infomercials routinely exaggerate the benefits of their products and services. I hate to sound flip, but -- so what? This (in my book) does not count as interesting or new.

dotmatrix 18y ago

Hahaha, gotta love the cash4gold banner ad below the flame!