Cash4Gold

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Cash4Gold
Headquarters Pompano Beach, Florida
Website www.Cash4Gold.com

Cash4Gold (sometimes stylized in advertising as Cash4Gold.com) is a Pompano Beach, Florida based company derived from Albar Precious Metal Refining, and headed by CEO Jeff Aronson.[1][2][3] David Knight, SVP for international marketing and expansion, joined the team in 2009 from eBay.[4] Shawn Kernes, a former Chief Technology Officer at StubHub, is the company’s COO.[5] The company serves as a mail-in refinery that buys gold, silver and platinum primarily from jewelry.[6] The company has been beset with controversy and criticism.

Contents

[edit] Company profile

Cash4Gold.com is a Pompano Beach, Florida 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.[7][8]

In 2006, Cash4Gold had sales of $40 million with 14 employees.[9][10] By May 2009, the company employed about 300 people with nearly 800,000 customer transactions.[11] As of 2010, the company has received more than 1,700 oz of gold per day with 94% of respondents accepting its cash offer.[12]

The company launched in the UK and additional markets in 2009 and in 2010 will be launching in six more countries[13] After three years of operation, Cash4Gold is approaching the one-million transaction milestone.[14]

[edit] 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 Florida.[11]

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.[11] 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,[11] though independent reports suggest less than 20% of the value is the norm.[15][16] The norm for the gold-buying industry is for the seller to be paid more than 90% of the value of the gold.[11]

Cash4Gold melts between 3,000 to 4,000 fine ounces of gold and 800 pounds of silver a week[11] 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.[17]

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. [18]

[edit] Advertising

[edit] Super Bowl XLIII advertisement

The Super Bowl XLIII advertisement featured Ed McMahon and MC Hammer, both of whom were well known for their financial troubles later on in their career.[19] The 30-second advertisement was produced by Super Bowl ad veteran Bryan Buckley and his Hungry Man Productions.[20] Sources place the cost for the 30-second advertisement at $2.4-$3 million.[2][6] Cash4Gold also played a 60-second ad in NBC's pre-game show, making it the first direct-response advertiser in that venue.[21]

The spot received considerable news coverage[2] and was seen by many commenters as a harbinger of the economic situation which was bottoming out in the United States at the time it aired.[22] CNBC’s Sports Biz blog touted the Cash4Gold spot as “the most relevant ad in this entire Super Bowl.”[23]

[edit] Sponsorships

Cash4Gold.com has signed sponsorships with Milwaukee Bucks,[24] a multi-car sponsorship with JD Motorsports of NASCAR,[25] Jim Dunn Racing of NHRA,[26] and MMA competitor Randy 'The Natural' Couture.[27]

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[28]

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.[29] 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.[30]

Cash4Gold signed a one-year deal with UCMMA for their 2010 events,[31] 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.[32] UCMMA is an MMA organization based in the UK and has a history of more than 40 high profile, successful events.[31]

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.[33]

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”.[34]

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.[35] 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.

[edit] Security measures

To ensure customers are the legal owners of the jewelry that is sent in, Florida 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.[36] Sellers must be at least 21 years old [37] and the senders’ addresses are verified.

[edit] 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.[38] It also offers a Spanish-language website called "OroPorDinero" which makes its services more accessible to Spanish speakers.[39]

[edit] United Kingdom

In July 2009, Cash4Gold launched their services in the United Kingdom, operating from secure processing sites in Sheffield,[40] and within the first month, they received over 4,000 packets [41] They have stated their intentions to become the UK's biggest direct response advertiser by the end of 2009,[42] targeting sales of £40 to £50 million for the first year.[43] Like their US operations, Cash4Gold's valuations have been criticised through media investigation.

The company is also creating UK-specific advertisements[44] that will feature a number of “recognizable” faces.[45] 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 [46] The winner will have tea with MC Hammer and the new celebrity.[47][48]

In December 2009, Cash4Gold announced Goldie, the drum 'n' bass artist famously known for his gold teeth, is appearing in their British spots.[49] 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[50]

Goldie, who most recently was on the BBC television program ‘Classic Goldie’ where he learned to write a score for The Proms [51] and was in such movies as “The World Is Not Enough” and Guy Ritchie’s ”Snatch”,[52] has stated he will be heavily involved in the creative process for the new advertisements.[53] 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.[51]Euro RSCG will produce the ad.[54] Cash4Gold has stated that 20 to 30 scripts will be involved in creating the spot.[54]Goldie will additionally be involved in the company’s support of such organizations as “Feed the Children”.[54]

[edit] Controversy

There are many complaints that Cash4Gold grossly undervalues jewelry sent to them by customers.[1] 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.[55] Consumer Reports, 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).[56]

After Rob Cockerham, a blogger, detailed drastic changes in Cash4Gold's valuation of jewelry after a complaint is made about an initial undervaluing,[57] a search engine optimization consultant offered "a few thousand dollars" for Rob to remove the criticism.[58] 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."[58] 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.”[59]

After a whistleblower posted on ComplaintsBoard.com discussing the inner workings of Cash4Gold.com,[60] The Consumerist and other blogs were hit with a defamation suit by Cash4Gold.com after running the postings.[56][60][61] In September 2009, Cash4Gold.com dropped Consumerist from their lawsuit.[62][63][64]

[edit] 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 BBC'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.[65]

[edit] Parody

The Cats4Gold website parodies Cash4Gold by encouraging visitors to post their Gold in exchange for a cat or kitten (depending on the quantity of gold sent).

[edit] References

  1. ^ a b Los Angeles Times blog "Beneath Cash4Gold's Shiny Veneer, A Dull Reality" February 5, 2009
  2. ^ a b c Bloomberg "Cash4Gold to Air Super Bowl Ad With M.C. Hammer and Ed McMahon" January 30, 2009
  3. ^ New York Times "Ads That Pushed Our Usual (Well Worn) Buttons" February 1, 2009
  4. ^ "Cash4Gold Hires New Senior Vice President". JC Online. August 5, 2009. http://www.jckonline.com/article/326619-Cash4Gold_Hires_New_Senior_Vice_President.php. Retrieved August 15, 2009. 
  5. ^ "High-level promotions and new hires in South Florida". Miami Herald. August 31, 2009. http://www.miamiherald.com/2009/08/31/1209191/movers.html. 
  6. ^ a b Christian Science Monitor "Got Gold? Why TV ad men want yours" February 4, 2009
  7. ^ "Eighties Pop Star MC Hammer has become an equity partner in the gold buying service Cash4Gold". London: The Telegraph. December 3, 2009. http://www.telegraph.co.uk/finance/personalfinance/investing/gold/6718613/Gold-Eighties-pop-star-MC-Hammer-has-become-an-equity-partner-in-the-gold-buying-service-Cash4Gold..html. Retrieved April 28, 2010. 
  8. ^ "Business Diary: Google boss takes fight to the enemy". London: The Independent. December 4, 2009. http://www.independent.co.uk/news/business/news/business-diary-google-boss-takes-fight-to-the-enemy-1833804.html. Retrieved January 27, 2010. 
  9. ^ Entrepreneur magazine's Hot 500 Company Rankings - Albar Precious Metals Company Information
  10. ^ Inc.com "No. 271" Albar Precious Metal Refining 2007 Fastest Growing Private Companies in America
  11. ^ a b c d e f Florida Trend "Cash4Gold's Rush" Retrieved on 2009-7-13
  12. ^ "Eighties Pop Star MC Hammer Has become an equity partner in the gold buying service Cash4Gold". London: Telegraph. December 3, 2009. http://www.telegraph.co.uk/finance/personalfinance/investing/gold/6718613/Gold-Eighties-pop-star-MC-Hammer-has-become-an-equity-partner-in-the-gold-buying-service-Cash4Gold..html. Retrieved April 28, 2010. 
  13. ^ Alex Saggers (December 8, 2009). "Goldie to bang drum for Cash4Gold". Marketing Week. http://www.marketingweek.co.uk/goldie-to-bang-drum-for-cash4gold/3007617.article. 
  14. ^ Nirvi Shah (March 20, 2010). "Broward businesses cash in on gold buy-back craze". Miami Herald. http://www.miamiherald.com/2010/03/20/1539831_p3/broward-businesses-cash-in-on.html. 
  15. ^ "The Article Cash4Gold Doesn't Want You To Read". The Consumerist. http://consumerist.com/5349663/the-article-cash4gold-doesnt-want-you-to-read. 
  16. ^ "Selling Your Gold? Read This First". CBS moneywatch. http://moneywatch.bnet.com/saving-money/blog/devil-details/selling-your-gold-read-this-first/622/. 
  17. ^ Nirvi Shah (March 20, 2010). "Broward businesses cash in on gold buy-back craze". Miami Herald. http://www.miamiherald.com/2010/03/20/1539831_broward-businesses-cash-in-on.html. Retrieved April 20, 2010. 
  18. ^ "Cash4Gold: Behind the Scenes". CNN. March 5, 2010. http://money.cnn.com/video/news/2010/03/23/n_cash4gold_bling_bars.cnnmoney/. Retrieved April 28, 2010. 
  19. ^ USA Today "Cash4Gold Snaps Up A Spot For the Super Bowl XLIII ad" Retrieved on 2009-7-02
  20. ^ "Fast Monday: Cash4Gold Buys Super Bowl spot". MediaPost. http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=99397. Retrieved 2009-07-09. 
  21. ^ Smart Brief “Super Bowl ad roster to include direct-response Cash4Gold” Retrieved on 2009-7-08
  22. ^ "Cash4Gold, Ed McMahon and MC Hammer". Time. February 2, 2009. http://www.time.com/time/specials/packages/article/0,28804,1874549_1874552_1876244,00.html. Retrieved 2009-07-01. 
  23. ^ Sports Biz “ Who Won the Super Bowl ad Game?” Retrieved on 2009-7-13
  24. ^ Palank, Jacqueline (April 30, 2009). "Athletes Can’t Box Out Recession". Wall Street Journal. http://blogs.wsj.com/bankruptcy/2009/04/30/athletes-cant-box-out-recession/. Retrieved 2009-07-17. 
  25. ^ Sports Business Daily “Wheels & Deals: Camping World To Remain Truck Series Sponsor” Retrieved on 2009-04-08
  26. ^ "Cash4Gold Joins Jim Dunn Racing". NHRA. July 30, 2009. http://www.nhra.com/story/2009/7/30/cash4gold-joins-jim-dunn-racing/. Retrieved August 4, 2009. 
  27. ^ "Cash4Gold to Sponsor Legendary Mixed Martial Arts Champion Randy 'The Natural' Couture in Upcoming Fights and Support Couture's Xtreme Couture G.I. Foundation". PR Newswire. August 28, 2009. http://news.prnewswire.com/ViewContent.aspx?ACCT=109&STORY=/www/story/08-28-2009/0005084543&EDATE=. Retrieved September 4, 2009. 
  28. ^ Michael J. Mooney. "UFC Legend Randy Couture Gets Gold After Loss". Broward Palm Beach. http://blogs.browardpalmbeach.com/juice/2009/09/randy_couture_cash4gold.php. Retrieved November 30, 2009. 
  29. ^ Tom Amenta (November 8, 2009). ""MMA stars "Train the Troops" at military bases in recent visits across the U.S."". MMA Junkie. http://mmajunkie.com/news/16775/mma-stars-train-the-troops-at-military-bases-in-recent-visits-across-the-u-s-.mma. 
  30. ^ Lex McMahon (November 2, 2009). "Train The Troops MMA inaugural event a huge success". Five Knuckles. http://www.fiveknuckles.com/mma-exclusive/Train-The-Troops-MMA-inaugural-event-a-huge-success.html. Retrieved December 4, 2009. 
  31. ^ a b "Cash4Gold Sponsors UCMMA – Win a trip to Dubai". Warriors of MMA. December 11, 2009. http://www.warriorsofmma.com/?p=323. 
  32. ^ "UCMMA strike Gold with new 2010 sponsorship deal". The Mirror. December 14, 2009. http://blogs.mirror.co.uk/wrestling-wwe-ufc-mma/2009/12/ucmma-strike-gold-with-new-201.html. 
  33. ^ "EXCLUSIVE: MC HAMMER Strikes Gold!". Celebrity Good Life. October 15, 2009. http://www.celebritygoodlife.com/blog/2009/10/exclusive-mc-hammer-strikes-gold.html. Retrieved March 8, 2010. 
  34. ^ "Rapper MC Hammer bigs up breakfast in Sheffield". The Star. December 14, 2009. http://www.thestar.co.uk/news/Rapper-MC-Hammer-bigs-up.5909514.jp. 
  35. ^ "MC Hammer, Big Mama toy giveaway". CNN. December 21, 2009. http://www.cnn.com/video/#/video/us/2009/12/21/wsvn.hammer.big.mama.toy.wsvn. Retrieved March 23, 2009. 
  36. ^ "Crist signs human smuggling bill". SunSentinel.com. June 11, 2009. http://www.sun-sentinel.com/news/local/florida/wsfl-talker-6-12-smuggling,0,7077092.story. Retrieved May 3, 2010. 
  37. ^ Nirvi Shah (March 20, 2010). "Broward businesses cash in on gold buy-back craze". Miami Herald.com. http://www.miamiherald.com/2010/03/20/1539831_p2/broward-businesses-cash-in-on.html. Retrieved May 3, 2010. 
  38. ^ Luxist.com “Sell your Luxury Jewelry To the Estate Buyer” Retrieved on 2009-7-18
  39. ^ Infomercial Hell “Oro Por Dinero Cash4Gold.com Airs New Spanish and English Commercials” Retrieved on 2009-7-25
  40. ^ "Cas For Gold Postal Service Launched in the UK". Bitter Wallet. July 20, 2009. http://www.bitterwallet.com/cash-for-gold-postal-service-launched-in-uk/15237. 
  41. ^ Stephen Womack (August 23, 2009). "The New Gold Rush Sweeping the UK". This Is Money. http://www.thisismoney.co.uk/news/article.html?in_article_id=489939&in_page_id=2. 
  42. ^ "Cash4Gold Boasts That it will be the UK’s biggest Direct response Advertiser by the end of year…". Marketing Direct Magazine. 22 July 2009. http://www.marketingdirectmag.co.uk/news/922083/Cash4Golds-boast-will-UKs-biggest-direct-response-advertiser-end-year/. Retrieved 08-06-09. 
  43. ^ Lorraine Turner, Reuters (October 26, 2009). "Cash4Gold sees shiny future in European market push". Times of Malter. http://www.timesofmalta.com/articles/view/20091026/business/cash4gold-sees-shiny-future-in-european-market-push/. 
  44. ^ "Creatives wont like it but DRTV has a new champion in Cash4Gold’s CEO Jeff Aronson". Marketing Direct Magazine. July 31, 2009. http://www.marketingdirectmag.co.uk/news/924312/Creatives-wont-DRTV-new-champion-Cash4Golds-CEO-Jeff-Aronson/. Retrieved 2009-08-07. 
  45. ^ "Cash4Gold negotiates UK celebrities ad campaign". Marketing Direct Magazine. August 3, 2009. http://marketingdirectmag.co.uk/news/924311/Cash4Gold-negotiates-UK-celebrities-ad-campaigns/. Retrieved August 17, 2009. 
  46. ^ "Cash4Gold asks public which celebrity should appear in advert". UTalkMarketing. http://www.utalkmarketing.com/pages/Article.aspx?ArticleID=15278&Title=Cash4Gold_asks_public_which_celebrity_should_appear_in_advert. Retrieved November 14, 2009. 
  47. ^ Darren Davidson (September 2009). "MC Hammer fronts UK Viral for Cash4Gold". Marketing Direct Mag. http://www.marketingdirectmag.co.uk/news/938015/MC-Hammer-fronts-UK-viral-Cash4Gold-competition. 
  48. ^ Sweney, Mark (September 14, 2009). "MC Hammer stars in Cash4Gold viral". London: The Guardian. http://www.guardian.co.uk/media/2009/sep/14/mc-hammer-cash4gold. Retrieved April 28, 2010. 
  49. ^ "Murdoch swallows his pride at MySpace". London: Independent. December 10, 2009. http://www.independent.co.uk/news/business/news/business-diary-murdoch-swallows-his-pride-at-myspace-1837334.html. Retrieved April 28, 2010. 
  50. ^ "Cash4Gold to make assault on primetime after signing up Goldie". Brand Republic. December 8, 2009. http://www.brandrepublic.com/News/972496/Cash4Gold-assault-primetime-signing-Goldie/. 
  51. ^ a b Evans, Richard (December 8, 2009). "Goldie joins MC Hammer in Cash4Gold line-up". London: Telegraph. http://www.telegraph.co.uk/finance/personalfinance/investing/gold/6761681/Goldie-joins-MC-Hammer-in-Cash4Gold-line-up.html. Retrieved April 28, 2010. 
  52. ^ "Goldie to bang drum for Cash4Gold". Marketing Week. December 8, 2009. http://www.marketingweek.co.uk/goldie-to-bang-drum-for-cash4gold/3007617.article. 
  53. ^ "Hammer time for Cash4Gold in the UK". Management Today. December 10, 2009. http://www.managementtoday.co.uk/channel/Entrepreneurship/news/973313/hammer-time-cash4gold-uk/. 
  54. ^ a b c "Cash4Gold to make assault on primetime after signing up Goldie". Brand Republic. December 8, 2009. http://www.brandrepublic.com/News/972496/Cash4Gold-assault-primetime-signing-Goldie/. 
  55. ^ I-Team Puts Gold Buyers To The Test - 10News I-Team Investigations Story - KGTV San Diego
  56. ^ a b "The Article Cash4Gold Doesn't Want You To Read". The Consumerist. September 1, 2009. http://consumerist.com/5349663/the-article-cash4gold-doesnt-want-you-to-read?skyline=true&s=x. Retrieved Sept 3 2009. 
  57. ^ "Cash4Gold Will Offer One-Third of the Actual Value for your Gold". http://www.cockeyed.com/citizen/goldkit/cheat.shtml. Retrieved 2009-02-09. 
  58. ^ a b MSNBC "Blogger: Cash4Gold tried to 'bribe' me" February 6, 2009
  59. ^ Cash4Gold blog “Response to Laratro Quote in MSNC”
  60. ^ a b "10 Confessions Of A Cash4Gold Employee". The Consumerist. February 2, 2009. http://consumerist.com/5144296/10-confessions-of-a-cash4gold-employee. Retrieved Sept 3 2009. 
  61. ^ Yahoo! Technology "Beware Cash4Gold and other gold-buying ripoffs" Null, Christopher
  62. ^ Seaman, David (2009-09-25). "Cash4Gold Drops Lawsuit Against Bloggers". MainStreet (TheStreet.com). http://www.mainstreet.com/article/moneyinvesting/news/cash4gold-drops-lawsuit-against-bloggers. Retrieved 2009-09-29. 
  63. ^ Ben, Popken. "Cash4Gold Drops Consumerist From Lawsuit". Consumerist. http://consumerist.com/5367209/cash4gold-drops-consumerist-from-lawsuit. Retrieved 2009-09-29. 
  64. ^ "Notice of dropping party" (PDF). 23 September 2009. http://consumermediallc.org/files/consumeristdropped.pdf. Retrieved 2009-09-29. 
  65. ^ "What's the 'true' value of your old gold?". BBC Newsbeat. November 2009. http://news.bbc.co.uk/newsbeat/hi/the_p_word/newsid_10000000/newsid_10003300/10003337.stm. Retrieved 2009-12-09. 

[edit] External links

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