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Monday, February 14, 2011

Shockingly Bad Value

The OFT have issued a scathing report about the business practices of various cash for gold companies, that buy people's gold jewelry at below market price and smelt it down.

CashMyGold, Cash4Gold and Postal Gold have all agreed to change their business practices as the OFT was concerned that people were being "locked into" accepting offers for their gold.

The firms state that customers can reject their cash offer. However, failure to contact the firm in the short time frame offered was taken as consent.

People who are desperate enough to use these firms are being given a very poor deal, as the prices that they can obtain from even pawn brokers are higher than offered by the cash for gold firms.

Which? found that these firms offered an average of 6% of the retail price of the gold, compared with an average of 25% offered by pawnbrokers and high street jewellers.

As Which? noted, this is "shockingly bad value"; it quite correctly warned people not to use them.

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