Cash for Gold Scheme Takes Their Form of Theft to the Next Level
Cash for Gold Scheme Takes Their Form of Theft to the Next Level by Rory, The Daily Coin
I love going to pawn shops, flea markets and junk stores to see if I can find real value lying around waiting to be picked up. I was just visiting several pawn shops that are on my list of “must go” places to see if there was anything of interest. Nothing this time around, but that’s okay, as summer becomes fall that will change in a big way.
We often speak of using pawn shops, flea markets and junk stores as resources to acquire gold, silver, diamonds and other hard assets with low premiums and, in a lot cases, under-valued assets. Acquiring diamond and other precious and semi-precious stones, along with the accompanying gold or platinum, is a great way for a person to build wealth outside the system. This is not financial advice, as I am not a financial advisor, but what I have discussed on a number of occasions.
It seems the “cash for gold” market has been reading my material and is taking a page from what we have suggested. These thieves with a storefront have been acquiring people’s wealth through the sale of their family jewels, silverware, military medals and anything and everything made of gold, diamonds, silver and other precious metals and jewels.
At Baird & Co’s gold refinery, boss Nick Hammond is sorting through a tray of scrap jewellery. Bracelets, necklaces, a horse pendant (called a “banger” because it is hollow, and could explode under high heat) and a military medallion dated 1895 are all destined for the furnace. “It’s sad, but we can’t hold them back – they all go in the pot,” Hammond says, pointing out that Baird would have paid around £30,000 to pawn brokers and other dealers for the contents of the tray.
Baird’s high-security factory, on an industrial estate in East London, is home to the UK’s only gold refinery. The family-held business, which celebrates its 50th anniversary this year, is a supplier of gold bars to the Royal Mint and one of the UK’s biggest producers of gold wedding bands. It has just opened a showroom and vault in the Hatton Garden area of London, hoping to lure new customers into the world of gold. “If you want long-term exposure to gold, you have to make the case for physical gold,” says Hammond.
The yellow metal is famed for its status as a safe haven and a store of wealth in times of uncertainty, but is there really a growing demand for physical gold? And how are companies exploiting the opportunity?
Global demand for gold bars and coins rose 9pc in the first quarter of year, according the World Gold Council, despite a relatively flat market. London remains at heart of the trade: in May alone, it cleared 20.8 million ounces of gold in transactions worth $25.8bn. The exact amount of gold in the City’s vaults has always been a mystery, but for the first next month the London Bullion Market Association will publish hard data on the gold its members hold.
With revenues of £665m, Baird is accustomed to turning out gold bars, coins, jewellery, bespoke items and industrial products for a range of suppliers. Its new shop is an attempt to “build the brand” and take some of the complexity out of holding gold, Hammond explains. The product itself is not “over complicated”, he says, and the market is highly liquid – Baird for example will always buy back gold from its customers at a small discount. But finding a trusted supplier and knowing where to store it has been a problem. Source
Why support these shops, where you have to pay for all the furnishings and other overhead, when you can go straight to their source – the consumer who is now completely drained of their resources? If you can front-run the consumer you have the opportunity to treat them with dignity and fair market value instead of allowing them to be abused at the hands of these “cash for gold” storefronts that use a formula to offer them about 30%, on average, below spot for their gold and almost nothing for any precious or semi-precious gem stones.
Now not only do these storefront thieves want to acquire one of the peoples last remaining scraps of wealth, they are now willing to sale it back to the people from which it came at true market value which is nowhere near what they paid. With this latest twist in the “cash for gold” scheme we can only hope that people will become better educated as to the true value of their grandparents silverware set, wedding set and other valuable items “laying around the house collecting dust”.