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How do businesses like "GetGoldCash" or "Cash4Gold" make money?

Okay, so I'd really like to know how companies that claim to give you "top dollar" for sending them your gold actually make a profit if they're supposedly giving you your gold's exact value. Don't you need to have money to make money? I know lots of people are selling their gold because of the weak economy so they can get some extra cash, but I'm very skeptical of these places who promise to give you exactly what your jewelry is worth. Wouldn't they make absolutely nothing if they did that? I'd like to know what's really going on. By the way, I saw the news investigations where they sent gold necklaces to several of these companies and only received a sad fraction of the value told to them by a real jeweler (one woman said she received $18 for $140 worth of gold). Don't you think with all the negative publicity these places would catch on and give people their gold's real value in cash?

Public Comments

1. You answered your own question within your post. These companies don't pay top dollar as they give their customers a fraction of the real value. Thus, they have built in a profit margin by only paying a small fraction of the value
2. Great Question...and yes, it is scam-my...check out this guys Youtube video, which shows you what is what with this whole angle. Basically, they are preying on people's desire for a quick buck from something largely unused and unusable. This is a great tutorial to watch BEFORE you think about doing this! http://www.youtube.com/watch?v=B9hYAhCFCkQ You can also check out the related video list on the right of the video when you are done. REMEMBER - the melt value is the value of the gold itself. Most gold is mixed with other materials to make it stronger, like 14K gold, 10K gold, etc. The materials they buy back from the public (via these Cash4Gold angles) wind up getting melted down, the lesser metals it was mixed with get removed, and they are left with the pure gold. If you think they are giving you fair value for your gold, you're wrong. They know people don't have the ability to melt their gold, nor the ability to find a place that will give them a decent price for it, hence the opportunistic ads you see and hear all the time now which scam the public. Why? Well, in the past few years, like the past 3 years, the gold market has DOUBLED. In 2007, it was around $500 oz, now it is $1000 an ounce. Result: on opportunity to scam people. Here's a link to an alert from the U.S.Gold Buyers site. Additionally, this is a reputable site that has been featured in the Wall Street Journal (and I am in no way affiliated with this site; it is just provided as a resource for you to educate yourself before considering selling gold) and the other tabs teach you how to sell and to whom, what to watch out for, etc. http://www.usgoldbuyers.com/alert.asp Share this with everyone who is interested in selling their gold or knowing how to do it. The more we protect our fellow consumers against scams and scam artists, the less of them we'll have to deal with! Caveat Emptor!
3. Most of these places are scams! Beware where you choose to sell is what I say. Find a reputable company that offers you a fair price, has a clean BBB record, makes you an offer you can refuse instead of just sending you a check that arrives too late for you to reject it and get your stuff back..AND read their terms and conditions where they can hide all the "small print"....that's where the sneakiness comes in! I recommend the ones I used - the Silver And Gold Exchange in NH. They were GREAT to do business with. here's their site if you'd like to check them out. http://silverandgoldexchange.com