The death of "Cash for Gold?"

halfcentman · July 23, 2012 10:24PM

As I have been driving around my Central NJ neighborhoods, I have taken some time in these slow summer months to see that these CFG stores are becoming less and less busy.

Also, for the first time in recent memory, I got a VALPAK (local business coupons), and there were ZERO coupons for buying gold. It's been a very long time since that occurred.

Knowledgeable dealers who know coins as well as gold are going to benefit from this downturn in the metals with regards to their peak.

There's another element to this: These stores are turning into a "lower class" venue as of late. What I mean by this is that people who tend to really need quick money go to these places like they would go to a check cashing place. When it comes to the rest of society, even blind hogs find acorns once in a while. I met a woman at a school function who showed me an invoice for selling 23.5 dwt of 14K. I would have paid her 75% more if she had sold it to me. Turned out she had more, sold it to me, and told many of her friends about me and where NOT TO GO.

ambro51 · July 23, 2012 10:46PM

Folks only have so much old silver, old earrings/wedding rings etc. it's not a renewable resource and these places have simply started running out of customers. PLUS, gold and silver prices have been stagnant for months...not as much drive to sell it.

jdimmick · July 23, 2012 11:17PM

we dont operate under the cash for gold buying philosphy, but I can tell you your comments are pretty accurate.

The amount of scrap gold coming in the shop has slowed down tremendously from last year. Last year July - Sept we would have days where we bought over 20k a day. Thats a lot for us in a town where scrap gold buyers as well as pawn shops are on every corner. In fact the last two weeks we have bought less than 3k in scrap. Some of the folks (that dont have to sell right away) that come in are waiting till the price of gold goes back to last years level. (Course I am not in that camp , i believe the bear has set in)
Most of the people that do come in and sell now are ones needing money.

some of the other places that were buying strictly gold only have closed.

Ill be glad to get back to the coin side of things as time goes by. Although , this town sucks for coin business, so ill either move to another place , retire and do appt only appraisal , and do busines at shows , etc.

droopyd · July 24, 2012 3:54AM

South Park - Cash for Gold song

LindeDad · July 24, 2012 4:07AM

Still sounds like they pay more than most fences do....

JamesMurray · July 24, 2012 4:13AM

There does seem to be fewer tv commercials for them but typing cash for gold into google shows 7 different locations in this one horse town.

mkman123 · July 24, 2012 4:16AM

I still see plenty of those type of stores/kiosks perhaps due to the slow summer they don't have the money to run more ads?

Wait for Christmas time......people will be selling lots of stuff for presents.

WTCG · July 24, 2012 5:23AM

Those cash for gold stores aren't turning low class, they've been low class ever since they've existed. They are mostly outlets for people who fall on financially hard times who need to raise cash without having the resources to get a payday advance.

Just like smoothie shops in the 90's and Quiznos from several years ago, when one brand or type of business over saturates the populace the customer audience becomes over extended and all locations will experience a decline in business. Gold buyers are no exception.

cmerlo1 · July 24, 2012 5:36AM

There have also been stories in the media about their buying practices, and I'm sure these have had an effect.

secondrepublic · July 24, 2012 6:39AM

a combination of all the factors discussed above. they've cleaned out a lot of the low-hanging fruit already; and gold prices aren't high enough to get many of the remaining people to sell.

TwoSides2aCoin · July 24, 2012 7:03AM

The 2012 W Gold American one ounce Eagle can be had with plastic. I know that's not what you meant, but this is a public service announcement to those who are paying attention to numismatics.

JamesMurray · July 24, 2012 7:07AM

<< <i>I still see plenty of those type of stores/kiosks perhaps due to the slow summer they don't have the money to run more ads?

Wait for Christmas time......people will be selling lots of stuff for presents. >>

Bingo , summers quiet on most fronts , vacations paid for. The Christmas panic will set in as summer fades.

mozin · July 24, 2012 7:10AM

I just noticed today that a local coin shop is closed, and all the windows are covered over in paper. The sign on the door says Cash for Gold will open on July 27. The big sign on the wall of the adjacent building advertising the old coin shop is still there, but the name of the shop is now covered over with Cash for Gold.

rhedden · July 24, 2012 7:26AM

I hate these things because they are convenient fencing operations for burglars. After my parents were recently burglarized, and the burglar only stole cash and gold, it was discovered that he had burglarized untold numbers of houses and was going straight to the cash for gold store, probably to get money for dope. The cash for gold place was gone 3 weeks later, and it would not surprise me if the police "helped" them close up shop.

Spooly · July 24, 2012 7:33AM

I went into two of these "Cash for Gold"...............both of them were empty(No inventory). I asked them I would like to buy some gold...... "sorry we don't sell gold..... we just buy it".

What kind of crappy business model is that? Why rent a retail front and only put one desk in it? I guess they don't want to put retail gold out for sale.... and the sucker.... oops.."customer" will see how they are being ripped off.

Baley · July 24, 2012 7:33AM

a Cash for Gold store recently popped up in a local strip mall (month or two ago), I agree this signals the beginning of the end of these stores, the money is made early in the run, these "me too" guys set up based on previous cash flow and profit reports are going to be sorely disappointed. I give this one till the end of the year, and will report back when it's "for lease" again.

JamesMurray · July 24, 2012 7:38AM

<< <i>I just noticed today that a local coin shop is closed, and all the windows are covered over in paper. The sign on the door says Cash for Gold will open on July 27. The big sign on the wall of the adjacent building advertising the old coin shop is still there, but the name of the shop is now covered over with Cash for Gold. >>

That blows , in saying that i don't know how our local guy stays in business.Towncentre of a historical town can't be cheap but ive yet to see a cutomer in there passing by albeit not daily.Ive been in , nothing to startle the casual browser.He does baseball cards as well , i suspect he can't be operating in the black.

Spooly · July 24, 2012 7:39AM

In my neighborhood all the women are yipping about "In home gold party's". Rip off with tea and cookies.

JamesMurray · July 24, 2012 7:42AM

<< <i>In my neighborhood all the women are yipping about "In home gold party's". Rip off with tea and cookies. >>

Why can't they stick to tupperware and Ann Summers ..sigh..

jdimmick · July 24, 2012 2:30PM

I have had some ladies come in where they sold a big portion of thier jewlery at those cash for gold parties, and after I tell them how much they lost, they get quite. These parties burn em up on buying prices.

The death of "Cash for Gold?"

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The death of &quot;Cash for Gold?&quot;

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The death of "Cash for Gold?"