Cash4Gold.com
Encyclopedia
Cash4Gold is a Pompano Beach, Florida
based company derived from Albar Precious Metal Refining, and headed by CEO Jeff Aronson. David Knight, SVP for international marketing and expansion, joined the team in 2009 from eBay
. Shawn Kernes, a former Chief Technology Officer at StubHub
, is the company’s COO. The company serves as a mail-in refinery that buys gold
, silver
and platinum
primarily from jewelry. The company has been beset with controversy and criticism.
company that grew out of Albar Precious Metal Refining. It is headed by CEO Jeff Aronson and as of December 2009, company spokesman MC Hammer
is also an equity partner.
In 2006, Cash4Gold had sales of $40 million with 14 employees. By May 2009, the company employed about 300 people with nearly 800,000 customer transactions. As of 2010, the company has received more than 1,700 oz of gold per day with 94% of respondents accepting its cash offer.
The company launched in the UK and additional markets in 2009 and in 2010 will be launching in six more countries After three years of operation, Cash4Gold is approaching the one-million transaction milestone.
.
Cash4Gold employees weigh the items, photograph them and assess the items using such tools as acids, X-rays and electronic testing devices. Then they send the customer a check for the determined amount. Customers are given 12 days from the date on the check to ask for their jewelry back if they are not completely satisfied with the amount of their check. According to the company, they pay between 20-80% of the melt value of the items to the seller, and generally less than a pawn shop would pay, though independent reports suggest less than 20% of the value is the norm. The norm for the gold-buying industry is for the seller to be paid more than 90% of the value of the gold.
Cash4Gold melts between 3,000 to 4,000 fine ounces of gold and 800 pounds of silver a week at 1,800 degrees, transforming broken jewelry into molten metal. It is then shaped into bars and sold to other refiners, private mints and jewelry makers.
CNN
visited Cash4Gold headquarters in March 2010 to see the company’s methods of collecting, processing and melting gold jewelry. In the visit, steps shown included customer background checks, a separation of the jewelry, then processing the items for evaluations before sending customers their checks and melting items into gold bars.
advertisement featured Ed McMahon
and MC Hammer
, both of whom were well known for their financial troubles later on in their career. The 30-second advertisement was produced by Super Bowl
ad veteran Bryan Buckley
and his Hungry Man Productions. Sources place the cost for the 30-second advertisement at $2.4-$3 million. Cash4Gold also played a 60-second ad in NBC
's pre-game show, making it the first direct-response advertiser in that venue.
The spot received considerable news coverage and was praised for being particularly effective given the slowing economic situation in the United States
at the time it aired. CNBC
’s Sports Biz blog touted the Cash4Gold spot as “the most relevant ad in this entire Super Bowl.”
, a multi-car sponsorship with JD Motorsports of NASCAR
, Jim Dunn Racing of NHRA
, and MMA
competitor Randy 'The Natural' Couture
.
In addition to sponsorships of Randy Couture
, Cash4Gold also sponsored his charity, the Xtreme Couture G.I. Foundation which honors veterans of the U.S. Armed Forces
Cash4Gold sponsored MMA “Train the Troops” events at Camp Pendleton, Marine Corps Air Station Miramar
and Marine Corps Air Station Yuma
. The event brought professional MMA fighters together with Marines to help them prepare for deployment. The three "Train The Troops" events were held at three Marine bases and included 12 pro fighters and trainers, as well as hundreds of Marines. There were six four-hour long training sessions.
Cash4Gold signed a one-year deal with UCMMA for their 2010 events, which adds to their interest in Mixed Martial Arts
and sponsorship deals with Cristiane Santos
("The Cyborg"), Brandon Vera
, Tim Kennedy
, Gray Maynard
, Leonard Garcia
, and Damacio Page
. UCMMA is an MMA organization based in the UK and has a history of more than 40 high profile, successful events.
Equity partner MC Hammer
and Cash4Gold teamed up to donate resources to “Feed the Children
” to help with relief efforts following storms in the Philippines
, American Samoa
, Indonesia
and Georgia
in the U.S. They also handed out meals to families affected by the recession in the Stockton
, California
area.
In December 2009, MC Hammer
and Cash4Gold helped “Feed the Children
” launch Breakfast2Live – “a new campaign to persuade schools to put on some early morning munchies to raise cash for developing countries and support more school breakfast clubs”.
For the 2009 holiday season, Cash4Gold and MC Hammer
handed out toys at the Broward County, Florida
Sheriff's Office’s annual "Toys for Tots and Teens" event. MC Hammer
and Cash4Gold also helped Essie “Big Mama” Reed for her annual toy give-away, presenting hundreds of pre-selected children from local nursery schools with presents and taking photographs. They were partnered with the Fort Lauderdale Police Department and Fort Lauderdale Parks & Recreation.
passed legislation aimed at regulating the online-gold-buying industry. Cash4Gold worked with Florida
legislators to draft the bill. This new law also requires the company to get a driver’s license number and a sworn statement from customers stating that they own the items they are selling. Sellers must be at least 21 years old and the senders’ addresses are verified.
speakers.
, operating from secure processing sites in Sheffield
, and within the first month, they received over 4,000 packets They have stated their intentions to become the UK's biggest direct response advertiser by the end of 2009, targeting sales of £40 to £50 million for the first year. Like their US operations, Cash4Gold's valuations have been criticised through media investigation.
The company is also creating UK-specific advertisements that will feature a number of “recognizable” faces. Cash4Gold and MC Hammer
ran a competition in September 2009 for the UK public to name who they’d like to see as the next celebrity spokesman The winner will have tea with MC Hammer
and the new celebrity.
In December 2009, Cash4Gold announced Goldie
, the drum 'n' bass artist famously known for his gold teeth, is appearing in their British spots. Cash4Gold didn’t release the results of the consumer poll but said Goldie
was "the overwhelming choice" and that the company's relationship with him would be for more than just for one ad
Goldie
, who most recently was on the BBC
television program ‘Classic Goldie
’ where he learned to write a score for The Proms
and was in such movies as “The World Is Not Enough
” and Guy Ritchie
’s ”Snatch
”, has stated he will be heavily involved in the creative process for the new advertisements. He also joked that he wouldn’t be sending in his gold teeth just yet as they will be part of his appeal for the ad.Euro RSCG
will produce the ad. Cash4Gold has stated that 20 to 30 scripts will be involved in creating the spot.Goldie
will additionally be involved in the company’s support of such organizations as “Feed the Children
”.
, using its "mystery shopper" team, sent 24 identical gold pendants and chains (purchased for $175 each) to Cash4Gold.com and its competitors. The determined melt value of the jewelry was calculated at around $70 each when gold was above $900 an ounce. In comparison with Pawn shop and Jewelry store quotes (which ranged from $25 to $50), Cash4Gold.com quoted between $7.60~$12.72 melt value for the jewelry. Similar low quotes were also given by Cash4Gold.com competitors GoldKit (around $7.81~$20.59) and GoldPaq (around $8.22~$13.11).
After Rob Cockerham, a blog
ger, detailed drastic changes in Cash4Gold's valuation of jewelry after a complaint is made about an initial undervaluing, a search engine optimization
consultant offered "a few thousand dollars" for Rob to remove the criticism. Cash4Gold CEO Jeff Aronson stated they had nothing to do with the incident, though the consultant stated "everyone (at Cash4Gold) was well aware of what was going on." On Cash4Gold’s blog, the company afterwards posted a “clarification statement” allegedly by the consultant contradicting that quote: “Cash4Gold was not aware of all of the tactics being using (sic) in my reputation management services.”
After a whistleblower
posted on ComplaintsBoard.com discussing the inner workings of Cash4Gold.com, The Consumerist and other blogs were hit with a defamation suit by Cash4Gold.com after running the postings. In September 2009, Cash4Gold.com dropped Consumerist from their lawsuit.
's Newsbeat
programme had gold valued by an independent gold bullion dealer in Mayfair, London, at around £300. Three jewellers in Hatton Garden
then offered similar amounts for the same collection; Cash4Gold's valuation cheque was for £63, raised to £100 when the researcher called to get their gold back.
Pompano Beach, Florida
Pompano Beach ) is a city in Broward County, Florida, along the coast of the Atlantic Ocean just to the north of Fort Lauderdale. The nearby Hillsboro Inlet forms part of the Atlantic Intracoastal Waterway. As of the 2010 census, the city's population was 99,845...
based company derived from Albar Precious Metal Refining, and headed by CEO Jeff Aronson. David Knight, SVP for international marketing and expansion, joined the team in 2009 from eBay
EBay
eBay Inc. is an American internet consumer-to-consumer corporation that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide...
. Shawn Kernes, a former Chief Technology Officer at StubHub
Stubhub
StubHub is an online marketplace owned by eBay, which provides services for buyers and sellers of tickets for sports, concerts, theater and other live entertainment events....
, is the company’s COO. The company serves as a mail-in refinery that buys gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
, silver
Silver
Silver is a metallic chemical element with the chemical symbol Ag and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal...
and platinum
Platinum
Platinum is a chemical element with the chemical symbol Pt and an atomic number of 78. Its name is derived from the Spanish term platina del Pinto, which is literally translated into "little silver of the Pinto River." It is a dense, malleable, ductile, precious, gray-white transition metal...
primarily from jewelry. The company has been beset with controversy and criticism.
Company profile
Cash4Gold.com is a Pompano Beach, FloridaPompano Beach, Florida
Pompano Beach ) is a city in Broward County, Florida, along the coast of the Atlantic Ocean just to the north of Fort Lauderdale. The nearby Hillsboro Inlet forms part of the Atlantic Intracoastal Waterway. As of the 2010 census, the city's population was 99,845...
company that grew out of Albar Precious Metal Refining. It is headed by CEO Jeff Aronson and as of December 2009, company spokesman MC Hammer
MC Hammer
Stanley Kirk Burrell , better known by his stage name MC Hammer , is an American rapper, entertainer, business entrepreneur, dancer and actor. He had his greatest commercial success and popularity from the late 1980s until the mid-1990s...
is also an equity partner.
In 2006, Cash4Gold had sales of $40 million with 14 employees. By May 2009, the company employed about 300 people with nearly 800,000 customer transactions. As of 2010, the company has received more than 1,700 oz of gold per day with 94% of respondents accepting its cash offer.
The company launched in the UK and additional markets in 2009 and in 2010 will be launching in six more countries After three years of operation, Cash4Gold is approaching the one-million transaction milestone.
Process
Consumers request a free, pre-paid envelope known as a “Refiner’s Return Pak” online or by phone. Once it arrives, customers place their gold materials in the pack and ship it to the Cash4Gold headquarters in FloridaFlorida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
.
Cash4Gold employees weigh the items, photograph them and assess the items using such tools as acids, X-rays and electronic testing devices. Then they send the customer a check for the determined amount. Customers are given 12 days from the date on the check to ask for their jewelry back if they are not completely satisfied with the amount of their check. According to the company, they pay between 20-80% of the melt value of the items to the seller, and generally less than a pawn shop would pay, though independent reports suggest less than 20% of the value is the norm. The norm for the gold-buying industry is for the seller to be paid more than 90% of the value of the gold.
Cash4Gold melts between 3,000 to 4,000 fine ounces of gold and 800 pounds of silver a week at 1,800 degrees, transforming broken jewelry into molten metal. It is then shaped into bars and sold to other refiners, private mints and jewelry makers.
CNN
CNN
Cable News Network is a U.S. cable news channel founded in 1980 by Ted Turner. Upon its launch, CNN was the first channel to provide 24-hour television news coverage, and the first all-news television channel in the United States...
visited Cash4Gold headquarters in March 2010 to see the company’s methods of collecting, processing and melting gold jewelry. In the visit, steps shown included customer background checks, a separation of the jewelry, then processing the items for evaluations before sending customers their checks and melting items into gold bars.
Super Bowl XLIII advertisement
The Super Bowl XLIIISuper Bowl XLIII
Super Bowl XLIII was an American football game pitting the American Football Conference champion Pittsburgh Steelers against the National Football Conference champion Arizona Cardinals to decide the National Football League champion for the 2008 season. The game was played on February 1, 2009,...
advertisement featured Ed McMahon
Ed McMahon
Edward Peter "Ed" McMahon, Jr. was an American comedian, game show host and announcer. He is most famous for his work on television as Johnny Carson's sidekick and announcer on The Tonight Show from 1962 to 1992. He also hosted the original version of the talent show Star Search from 1983 to 1995...
and MC Hammer
MC Hammer
Stanley Kirk Burrell , better known by his stage name MC Hammer , is an American rapper, entertainer, business entrepreneur, dancer and actor. He had his greatest commercial success and popularity from the late 1980s until the mid-1990s...
, both of whom were well known for their financial troubles later on in their career. The 30-second advertisement was produced by Super Bowl
Super Bowl
The Super Bowl is the championship game of the National Football League , the highest level of professional American football in the United States, culminating a season that begins in the late summer of the previous calendar year. The Super Bowl uses Roman numerals to identify each game, rather...
ad veteran Bryan Buckley
Bryan Buckley
Bryan Buckley is an American film and commercial director and screenwriter.- Films :* The Wake-Up Caller : director, writer* Krug : director, writer...
and his Hungry Man Productions. Sources place the cost for the 30-second advertisement at $2.4-$3 million. Cash4Gold also played a 60-second ad in NBC
NBC
The National Broadcasting Company is an American commercial broadcasting television network and former radio network headquartered in the GE Building in New York City's Rockefeller Center with additional major offices near Los Angeles and in Chicago...
's pre-game show, making it the first direct-response advertiser in that venue.
The spot received considerable news coverage and was praised for being particularly effective given the slowing economic situation in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
at the time it aired. CNBC
CNBC
CNBC is a satellite and cable television business news channel in the U.S., owned and operated by NBCUniversal. The network and its international spinoffs cover business headlines and provide live coverage of financial markets. The combined reach of CNBC and its siblings is 390 million viewers...
’s Sports Biz blog touted the Cash4Gold spot as “the most relevant ad in this entire Super Bowl.”
Sponsorships
Cash4Gold.com has signed sponsorships with Milwaukee BucksMilwaukee Bucks
The Milwaukee Bucks are a professional basketball team based in Milwaukee, Wisconsin, United States. They are part of the Central Division of the Eastern Conference in the National Basketball Association . The team was founded in 1968 as an expansion team, and currently plays at the Bradley Center....
, a multi-car sponsorship with JD Motorsports of NASCAR
NASCAR
The National Association for Stock Car Auto Racing is a family-owned and -operated business venture that sanctions and governs multiple auto racing sports events. It was founded by Bill France Sr. in 1947–48. As of 2009, the CEO for the company is Brian France, grandson of the late Bill France Sr...
, Jim Dunn Racing of NHRA
National Hot Rod Association
The National Hot Rod Association is a drag racing governing body, which sets rules in drag racing and host events all over the United States and Canada...
, and MMA
Mixed martial arts
Mixed Martial Arts is a full contact combat sport that allows the use of both striking and grappling techniques, both standing and on the ground, including boxing, wrestling, Brazilian jiu-jitsu, muay Thai, kickboxing, karate, judo and other styles. The roots of modern mixed martial arts can be...
competitor Randy 'The Natural' Couture
Randy Couture
Randy Duane Couture is a retired American mixed martial artist, Greco-Roman wrestler, actor, a three-time former heavyweight champion, two-time former light-heavyweight champion, former interim light heavyweight champion and UFC 13 tournament winner of the Ultimate Fighting Championship...
.
In addition to sponsorships of Randy Couture
Randy Couture
Randy Duane Couture is a retired American mixed martial artist, Greco-Roman wrestler, actor, a three-time former heavyweight champion, two-time former light-heavyweight champion, former interim light heavyweight champion and UFC 13 tournament winner of the Ultimate Fighting Championship...
, Cash4Gold also sponsored his charity, the Xtreme Couture G.I. Foundation which honors veterans of the U.S. Armed Forces
Cash4Gold sponsored MMA “Train the Troops” events at Camp Pendleton, Marine Corps Air Station Miramar
Marine Corps Air Station Miramar
Marine Corps Air Station Miramar , formerly Naval Air Station Miramar is a United States Marine Corps installation that is home to the 3rd Marine Aircraft Wing, which is the aviation element of the 1st Marine Expeditionary Force...
and Marine Corps Air Station Yuma
Marine Corps Air Station Yuma
Marine Corps Air Station Yuma or MCAS Yuma is a United States Marine Corps air station which is the home to multiple squadrons of AV-8B Harrier IIs of the 3rd Marine Aircraft Wing, Marine Aviation Weapons and Tactics Squadron 1 and Marine Fighter Training Squadron 401 , an air combat adversary...
. The event brought professional MMA fighters together with Marines to help them prepare for deployment. The three "Train The Troops" events were held at three Marine bases and included 12 pro fighters and trainers, as well as hundreds of Marines. There were six four-hour long training sessions.
Cash4Gold signed a one-year deal with UCMMA for their 2010 events, which adds to their interest in Mixed Martial Arts
Mixed martial arts
Mixed Martial Arts is a full contact combat sport that allows the use of both striking and grappling techniques, both standing and on the ground, including boxing, wrestling, Brazilian jiu-jitsu, muay Thai, kickboxing, karate, judo and other styles. The roots of modern mixed martial arts can be...
and sponsorship deals with Cristiane Santos
Cristiane Santos
Cristiane Justino Venancio Santos is a Brazilian mixed martial artist and the Strikeforce Women's Featherweight Champion . Santos won the title on August 15, 2009 by defeating Gina Carano via TKO...
("The Cyborg"), Brandon Vera
Brandon Vera
Brandon Michael Vera is an American mixed martial artist. He competes as a light heavyweight in the Ultimate Fighting Championship. He is the winner of the WEC 13 Heavyweight Tournament and currently resides in San Diego, California. He holds notable victories over Frank Mir, Assuerio Silva,...
, Tim Kennedy
Tim Kennedy
Tim Kennedy is an American ice hockey forward who plays for the Florida Panthers organization of the National Hockey League.-Playing career:...
, Gray Maynard
Gray Maynard
Bradley Gray Maynard is an American amateur wrestler and mixed martial artist, who competes as a lightweight in the Ultimate Fighting Championship. He has recorded one of the fastest knockouts in UFC history, at 9 seconds against Joe Veres. He is the only fighter to hold a win over current...
, Leonard Garcia
Leonard Garcia
Leonard Garcia is an American mixed martial artist who currently competes in the featherweight division of the Ultimate Fighting Championship. He previously fought for the UFC in the lightweight division before moving down to the featherweight division in the World Extreme Cagefighting...
, and Damacio Page
Damacio Page
Damacio James Page is an American mixed martial arts fighter and who currently competes in the bantamweight division for the Ultimate Fighting Championship...
. UCMMA is an MMA organization based in the UK and has a history of more than 40 high profile, successful events.
Equity partner MC Hammer
MC Hammer
Stanley Kirk Burrell , better known by his stage name MC Hammer , is an American rapper, entertainer, business entrepreneur, dancer and actor. He had his greatest commercial success and popularity from the late 1980s until the mid-1990s...
and Cash4Gold teamed up to donate resources to “Feed the Children
Feed The Children
Feed The Children founded in 1979 is an international, non-profit relief organization guided by Christian values, whose stated mission is "providing hope and resources for those without life's essentials". In FY 2010, Feed The Children distributed more than 133 million pounds of food and other...
” to help with relief efforts following storms in the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
, American Samoa
American Samoa
American Samoa is an unincorporated territory of the United States located in the South Pacific Ocean, southeast of the sovereign state of Samoa...
, Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
and Georgia
Georgia (U.S. state)
Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...
in the U.S. They also handed out meals to families affected by the recession in the Stockton
Stockton, California
Stockton, California, the seat of San Joaquin County, is the fourth-largest city in the Central Valley of the U.S. state of California. With a population of 291,707 at the 2010 census, Stockton ranks as this state's 13th largest city...
, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
area.
In December 2009, MC Hammer
MC Hammer
Stanley Kirk Burrell , better known by his stage name MC Hammer , is an American rapper, entertainer, business entrepreneur, dancer and actor. He had his greatest commercial success and popularity from the late 1980s until the mid-1990s...
and Cash4Gold helped “Feed the Children
Feed The Children
Feed The Children founded in 1979 is an international, non-profit relief organization guided by Christian values, whose stated mission is "providing hope and resources for those without life's essentials". In FY 2010, Feed The Children distributed more than 133 million pounds of food and other...
” launch Breakfast2Live – “a new campaign to persuade schools to put on some early morning munchies to raise cash for developing countries and support more school breakfast clubs”.
For the 2009 holiday season, Cash4Gold and MC Hammer
MC Hammer
Stanley Kirk Burrell , better known by his stage name MC Hammer , is an American rapper, entertainer, business entrepreneur, dancer and actor. He had his greatest commercial success and popularity from the late 1980s until the mid-1990s...
handed out toys at the Broward County, Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
Sheriff's Office’s annual "Toys for Tots and Teens" event. MC Hammer
MC Hammer
Stanley Kirk Burrell , better known by his stage name MC Hammer , is an American rapper, entertainer, business entrepreneur, dancer and actor. He had his greatest commercial success and popularity from the late 1980s until the mid-1990s...
and Cash4Gold also helped Essie “Big Mama” Reed for her annual toy give-away, presenting hundreds of pre-selected children from local nursery schools with presents and taking photographs. They were partnered with the Fort Lauderdale Police Department and Fort Lauderdale Parks & Recreation.
Security Measures
To ensure customers are the legal owners of the jewelry that is sent in, FloridaFlorida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
passed legislation aimed at regulating the online-gold-buying industry. Cash4Gold worked with Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
legislators to draft the bill. This new law also requires the company to get a driver’s license number and a sworn statement from customers stating that they own the items they are selling. Sellers must be at least 21 years old and the senders’ addresses are verified.
Related businesses
Cash4Gold launched a new division called “The Estate Buyer” which caters to individual selling high-end jewelry from brand-name manufacturers. Unlike Cash4Gold, “The Estate Buyer” does not base its offers on the melt value of gold in an item, but upon reselling the items. It also offers a Spanish-language website called "OroPorDinero" which makes its services more accessible to SpanishSpanish language
Spanish , also known as Castilian , is a Romance language in the Ibero-Romance group that evolved from several languages and dialects in central-northern Iberia around the 9th century and gradually spread with the expansion of the Kingdom of Castile into central and southern Iberia during the...
speakers.
United Kingdom
In July 2009, Cash4Gold launched their services in the United KingdomUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, operating from secure processing sites in Sheffield
Sheffield
Sheffield is a city and metropolitan borough of South Yorkshire, England. Its name derives from the River Sheaf, which runs through the city. Historically a part of the West Riding of Yorkshire, and with some of its southern suburbs annexed from Derbyshire, the city has grown from its largely...
, and within the first month, they received over 4,000 packets They have stated their intentions to become the UK's biggest direct response advertiser by the end of 2009, targeting sales of £40 to £50 million for the first year. Like their US operations, Cash4Gold's valuations have been criticised through media investigation.
The company is also creating UK-specific advertisements that will feature a number of “recognizable” faces. Cash4Gold and MC Hammer
MC Hammer
Stanley Kirk Burrell , better known by his stage name MC Hammer , is an American rapper, entertainer, business entrepreneur, dancer and actor. He had his greatest commercial success and popularity from the late 1980s until the mid-1990s...
ran a competition in September 2009 for the UK public to name who they’d like to see as the next celebrity spokesman The winner will have tea with MC Hammer
MC Hammer
Stanley Kirk Burrell , better known by his stage name MC Hammer , is an American rapper, entertainer, business entrepreneur, dancer and actor. He had his greatest commercial success and popularity from the late 1980s until the mid-1990s...
and the new celebrity.
In December 2009, Cash4Gold announced Goldie
Goldie
Clifford Joseph Price, better known as Goldie is an English electronic music artist, disc jockey, visual artist and actor. He is well known for his innovations in the jungle and drum and bass music genres, having previously gained exposure for his work as a graffiti artist...
, the drum 'n' bass artist famously known for his gold teeth, is appearing in their British spots. Cash4Gold didn’t release the results of the consumer poll but said Goldie
Goldie
Clifford Joseph Price, better known as Goldie is an English electronic music artist, disc jockey, visual artist and actor. He is well known for his innovations in the jungle and drum and bass music genres, having previously gained exposure for his work as a graffiti artist...
was "the overwhelming choice" and that the company's relationship with him would be for more than just for one ad
Goldie
Goldie
Clifford Joseph Price, better known as Goldie is an English electronic music artist, disc jockey, visual artist and actor. He is well known for his innovations in the jungle and drum and bass music genres, having previously gained exposure for his work as a graffiti artist...
, who most recently was on the BBC
BBC
The British Broadcasting Corporation is a British public service broadcaster. Its headquarters is at Broadcasting House in the City of Westminster, London. It is the largest broadcaster in the world, with about 23,000 staff...
television program ‘Classic Goldie
Classic Goldie
Classic Goldie was a British two part documentary directed by Toby Macdonald shown on BBC Two in Summer 2009.- Background :The show was based around the Drum and Bass musician Goldie learning how to create a piece of classical music. Goldie was a competitor on the BBC television conducting series...
’ where he learned to write a score for The Proms
The Proms
The Proms, more formally known as The BBC Proms, or The Henry Wood Promenade Concerts presented by the BBC, is an eight-week summer season of daily orchestral classical music concerts and other events held annually, predominantly in the Royal Albert Hall in London...
and was in such movies as “The World Is Not Enough
The World Is Not Enough
The World Is Not Enough is the nineteenth spy film in the James Bond film series, and the third to star Pierce Brosnan as the fictional MI6 agent James Bond. The film was directed by Michael Apted, with the original story and screenplay written by Neal Purvis, Robert Wade and Bruce Feirstein. It...
” and Guy Ritchie
Guy Ritchie
Guy Stuart Ritchie is an English screenwriter and film maker who directed Lock, Stock and Two Smoking Barrels, Snatch, Revolver, RocknRolla and Sherlock Holmes.-Early life:...
’s ”Snatch
Snatch
Snatch may refer to:* Snatch , a 2000 British gangster movie by director Guy Ritchie* Snatch theft, grab-and-run theft from a motorcycle, in Malaysia* Snatch, an album by Howie B* Snatch , or Anagrams, word game...
”, has stated he will be heavily involved in the creative process for the new advertisements. He also joked that he wouldn’t be sending in his gold teeth just yet as they will be part of his appeal for the ad.Euro RSCG
Euro RSCG
Euro RSCG Worldwide is one of the largest integrated marketing communications agencies in the world, made up of 233 offices located in 75 countries throughout Europe, North America, Latin America, Asia Pacific and the Middle East. Euro RSCG provides advertising, marketing services, corporate...
will produce the ad. Cash4Gold has stated that 20 to 30 scripts will be involved in creating the spot.Goldie
Goldie
Clifford Joseph Price, better known as Goldie is an English electronic music artist, disc jockey, visual artist and actor. He is well known for his innovations in the jungle and drum and bass music genres, having previously gained exposure for his work as a graffiti artist...
will additionally be involved in the company’s support of such organizations as “Feed the Children
Feed The Children
Feed The Children founded in 1979 is an international, non-profit relief organization guided by Christian values, whose stated mission is "providing hope and resources for those without life's essentials". In FY 2010, Feed The Children distributed more than 133 million pounds of food and other...
”.
Controversy
There are many complaints that Cash4Gold grossly undervalues jewelry sent to them by customers. Channel 10 News in San Diego did an investigation where they sent in a ring containing over 2 grams of gold worth $17 in weight to three different sites. The payout from Cash4Gold was $7.91. Consumer ReportsConsumer Reports
Consumer Reports is an American magazine published monthly by Consumers Union since 1936. It publishes reviews and comparisons of consumer products and services based on reporting and results from its in-house testing laboratory. It also publishes cleaning and general buying guides...
, using its "mystery shopper" team, sent 24 identical gold pendants and chains (purchased for $175 each) to Cash4Gold.com and its competitors. The determined melt value of the jewelry was calculated at around $70 each when gold was above $900 an ounce. In comparison with Pawn shop and Jewelry store quotes (which ranged from $25 to $50), Cash4Gold.com quoted between $7.60~$12.72 melt value for the jewelry. Similar low quotes were also given by Cash4Gold.com competitors GoldKit (around $7.81~$20.59) and GoldPaq (around $8.22~$13.11).
After Rob Cockerham, a blog
Blog
A blog is a type of website or part of a website supposed to be updated with new content from time to time. Blogs are usually maintained by an individual with regular entries of commentary, descriptions of events, or other material such as graphics or video. Entries are commonly displayed in...
ger, detailed drastic changes in Cash4Gold's valuation of jewelry after a complaint is made about an initial undervaluing, a search engine optimization
Search engine optimization
Search engine optimization is the process of improving the visibility of a website or a web page in search engines via the "natural" or un-paid search results...
consultant offered "a few thousand dollars" for Rob to remove the criticism. Cash4Gold CEO Jeff Aronson stated they had nothing to do with the incident, though the consultant stated "everyone (at Cash4Gold) was well aware of what was going on." On Cash4Gold’s blog, the company afterwards posted a “clarification statement” allegedly by the consultant contradicting that quote: “Cash4Gold was not aware of all of the tactics being using (sic) in my reputation management services.”
After a whistleblower
Whistleblower
A whistleblower is a person who tells the public or someone in authority about alleged dishonest or illegal activities occurring in a government department, a public or private organization, or a company...
posted on ComplaintsBoard.com discussing the inner workings of Cash4Gold.com, The Consumerist and other blogs were hit with a defamation suit by Cash4Gold.com after running the postings. In September 2009, Cash4Gold.com dropped Consumerist from their lawsuit.
UK controversy
Various UK media organisations have undertaken trials of Cash4Gold's UK service, and found their valuation greatly below the independently assessed fair market value. For instance, in November 2009, the BBCBBC
The British Broadcasting Corporation is a British public service broadcaster. Its headquarters is at Broadcasting House in the City of Westminster, London. It is the largest broadcaster in the world, with about 23,000 staff...
's Newsbeat
Newsbeat
Newsbeat is the flagship news programme on BBC Radio 1 and BBC Radio 1Xtra. Newsbeat is produced by BBC News but differs from the BBC's other news programmes in its remit to provide news tailored for a specifically younger audience....
programme had gold valued by an independent gold bullion dealer in Mayfair, London, at around £300. Three jewellers in Hatton Garden
Hatton Garden
Hatton Garden is a street and area near Holborn in London, England. It is most famous for being London’s jewellery quarter and centre of the UK diamond trade, but the area is also now home to a diverse range of media and creative businesses....
then offered similar amounts for the same collection; Cash4Gold's valuation cheque was for £63, raised to £100 when the researcher called to get their gold back.
External links
- Cash4Gold.com Official Homepage
- Cash for Gold
- Patriot Ledger Shop Around Before Cashing in Your Gold