Money for used gold stores growth

@ishrael (114)
Portugal
February 3, 2011 12:59pm CST
Don't you think that the market is overcrowded with these "We give you money for your gold" stores. I live in Madeira Island - Portugal, and almost everywhere i look theres one of these stores. Some are franchises with more than 150 stores opened troughout the country. With the world crisis lots of people in need of money use them as a good resource, but is it enough room for so many stores opened and still opening more and more each day? What do you think. Is there a possibity of fraud, because they colect a lot of personal data from the clients and possible clientes?
3 responses
@coffeebreak (17798)
• United States
3 Feb 11
Huge possibility of fraud. And most might be. If I had any gold to exchange, I'd take it to a jewlery store or something like that. First I'd look up the price of gold today, and then know if they are giving me fair market value. I know that they are just buying it now (even tho the price is high) because they can play on peoples hard luck of unemployment these days, an then they will just consolidate it and save it until it goes up again. But I bet they don't give you the exact market price for it. Probably charge a service fee or appraisal fee or something. Just to make a buck now off you. Then they just hang on to it or sell it to jewelery makers...they bought it cheap, they sell it higher.
@TeamCholent (2832)
• United States
3 Feb 11
I"m certain a lot of these stores will be closing in a year or two when the economy starts to improve. The companies have a lot of cash to "invest" so they purchase gold at discount prices and can have it melted and turned into bars etc and sold at the trading levels. I wouldn't say its fraud but its certain they are taking advantage of peoples dire situation. The personal data they collect is to ensure the gold and items are not stolen.
• Italy
3 Feb 11
I live in Italy and also here there tons of this stores have opened; let's facer it: it's their moment. Last night I heard on tv that more and more old people are seeling their THEET to have some cash...this is so sad. But what could you expect after the worst financial crisis of all times? :/ I won't say that all these stores are honest, but I'm sure there's a way to find out; for instance chosing the eldest or the most famous into town because this last wouldn't like to ruin its reputacy.