New Cash 4 Gold shop offers cash for your broken bling

Want to shed your gold and silver for a quick buck? Rhoda Rak is the woman to see.
Melissa Topey
Feb 15, 2013

 

Rak opened Cash 4 Gold last month on Milan Road near Sandusky Mall, in a complex housing a laundromat and car wash. 

“We're not selling jewelry," Rak said. "We only buy gold, so we're able to offer a better buyout price."

While the offered price depends on the ever-changing market, the last few years have seen increased prices for gold and silver. 

Gold prices also depend on the quantity of the precious metal, such as 24 Karat or 10 Karat. It can range anywhere from $15 to $21 an ounce. Silver averages about $30 an ounce.

Rak's store buys gold, silver, sterling silver — old silverware sets, for instance — platinum and old coins minted in 1964 or years prior.

The shop then sells the material to companies that melts it down.

This is Rak's second location, following the 2010 opening of a cash-for-gold shop in Lorain.

Customers bring in old jewelry they no longer wear, broken jewelry, a single earring when the other has been lost, wedding rings after a divorce, and items found in garage or estate sales.

People typically use the extra cash to pay bills or buy new jewelry, she said.

The shop is managed by Laurie Budd, who recommends people to stop in with their items so she can offer a free assessment. During the process, she explains everything she's doing.

“All done right before you,” Budd said, assuring an item never leaves someone's sight.

Rak and her husband also operate an e-commerce business that sells whirlpools, hot tubs, steam showers and the like. They went into the precious metals field after seeing the success of a business acquaintance.

“We saw the traffic he got into the store and how excited the customers were to get money,” Rak said.

 

Sandusky Cash 4 Gold

Where: 4307 Milan Road, Perkins Township 

Phone: 419-502- 5900

Hours: 10 a.m. to 6 p.m. Monday through Friday; 10 a.m. to 4 p.m. Saturday

 

Comments

Joker

Um, 24k gold is pure gold. The spot price for gold today is $1610.10. So if they're paying $21 an ounce for that, they're pocketing the other $1589.10 (98.7%).

That doesn't sound correct. That's a bigger pocketbook assault than Uncle Sam

margaritaville88

I was wondering the same thing. So, I have decided to pay $22 an ounce for all the gold anyone brings to me.....

Good 2 B Me

I am guessing that they meant per Gram.

margaritaville88

28.3495 grams = 1 oz. x $21 is only $595.34...only 1/3 of value ???? what gives??

mikeylikesit

31.1034768 grams = 1 troy oz.

margaritaville88

ok....31.10 x 21 is still only $653.10 !!??

grandmasgirl

Most jewelry is either 10 or 14k. You also have the gold plated, silver plated, etc. Even your best jewelry is 18k.

AnotherHuronResident

Must be an error in the story. I'm thinking the price for gold is for a gram not an ounce.

BW1's picture
BW1

There's definitely an error since the article has them paying more for silver than for gold. However, these cash for gold places typically pay less than one third the "melt price," i.e. the commodity price of the actual gold content. Remember, they are a business, expecting to make a profit after paying overhead. They're obviously going to have to pay you less than they will get selling it. The difference in what you get is the charge for the service of buying small quantities from people off the street, storing/accumulating it until there's enough for it to be worth the energy to melt it down, and for access to their relationship with the smelter.

The commodity price for gold is the price at which banks and other such institutions buy and sell bullion - verified purity gold apportioned in standard size ingots that can easily be quantified, as opposed to your grandmother's locket.

luvblues2

Same as walking into a pawn shop, BW1. If there is no profit, why do business? Some don't understand. Do I believe those pawn shop shows on TV? Hell no. All staged. It still doesn't take away from what I said previously.

BW1's picture
BW1

Even on those shows, they very clearly speak of what they will pay being about half what they think they can get for the item. For those sort of unique items, people are better off on eBay, where they can eliminate the middleman and directly expose their goods to the handful of people in the nation who want them.

luvblues2

Agreed.

Joker

Obviously they are a business, I'm not so daft that I think they are going to pay exact spot price for it. I was merely pointing out that the story was either very wrong or the business was a bigger crook than the federal government.

BW1's picture
BW1

They can never be bigger crooks than the federal government, because you can always choose not to do business with them without fear that they will send men with guns to take you to prison. The key component of government is coercion.

luvblues2

24k gold is really soft. If you had a ring made of it and slammed your hand on a table, it would be really misshapen and would probably be hard to get off of said finger unless you did something to make it "rounder" again. Not much jewelry is that pure for that very reason. It's kinda like lead.

Joker

Okay, take 14k gold then. That is 58% gold. Multiply by spot price: $939. Say a reasonable amount to keep for overhead etc... is 25%, they should still be paying $704 per ounce. Even if they only pay you a third as a previous poster has suggested they would pay you $313 which is far less than what is said in the story.

Spot price for 1 gram (assuming Troy oz) is $51.76 for pure gold.

BW1's picture
BW1

Forget "reasonable overhead," because these are not typical businesses. They have very little competition because of the market to which they cater. It's high margin, short term, selling to a market with very little information or interurban mobility.

luvblues2
007

Even at gram price the gold market based upon spot that is written above, 24 kt would be worth $51.77 gram gross melt value. You can actually sell to refineries yourself. Don't be duped by these people and others like themselves. Here is a gold and silver calculator that will let you know how they are duping the public. http://www.silverrecyclers.com/C...

SamAdams

No, NONE of these places buying gold and silver give you the full value. Some give more than others; some give less. But they let you know how much they're paying, and they let you know what they'll give you for whatever it is you've brought to them. They need to make a profit (obviously), and YOU need to decide what the convenience and the immediate cash-in-hand is worth to you.

I don't know why people here would disparage ANY new business as long as it's legal to run, and then continues to operate within the law. Sure, if someday one of these places is found to be cheating Grandma by telling her that her 14K jewelry is really only 10K, we can call them the thieves that they are. But nobody is suggesting anything criminal here. Either sell your precious metals to them, or don't. Sheesh, people!

The Hero Zone's picture
The Hero Zone

Agreed! Thank you and some of the others here who see how operations like this run. I do the same thing only with paper and cardboard yet still have to fight against the stigma that I am a fly-by-night flea market vendor instead of an established brick-and-mortar business handling every trade transparently.

I wish them well in their newly-expanded business.

BW1's picture
BW1

@SamAdams:"I don't know why people here would disparage ANY new business as long as it's legal to run"

Some businesses are better for the community than others. These places cater to a demographic that is less constructive to the community - those who lack the knowledge to find a buyer at a price more reflective of the market rate, those who have to quickly liquidate assets because they don't save, and you can bet that such places, whether they want to or not, lack any robust way to guaranntee that the goods they buy are not stolen, so add to that list thieves.

Like payday lenders, these businesses cater to people who don't plan or budget with the future in mind - traits that are not conducive to building good communities.

Contango

SamAdams writes:"I don't know why people here would disparage ANY new business as long as it's legal to run"

Indeed.

Ultimately the success of any enterprise depends upon on the adage: Find a need and fill it.

In their desire to protect people from themselves, well meaning but clueless govt. bureaucrats have made credit increasingly difficult for some citizens to obtain leaving them with few if any choices to obtain much needed cash INCLUDING pawn shops & payday lenders.

The Hero Zone's picture
The Hero Zone

I haven't been able to get a non-suspicious credit card in years. Credit score hasn't ticked up in some time and while I am at an "acceptable" number when my credit is pulled for the application it will drop me below the threshold. My bank's underwriters are, as I have been told, in a position to do nothing about that. Le sigh. On top of living out of checking and the constant threat of overdraw fees, I am actually charged by my bank if I deposit too much money in my account. However, the next business account that "waives" that fee requires something like $15,000 kept inside it. So I have too much money for the not-enough account and not enough money for the too-much account, all the while I pay various bank fees. Let's throw in there the fees for certified checks some of my suppliers need. Or if I don't pay with a COD Certified, some charge extra to process credit cards. Ugh.

SamAdams

Gosh, BW1, you're right. Some people are just too stupid to make decisions about their own property or their own money. I'd better make all of their choices for them since it's clear I'm WAAAAAaaaaay smarter than they are! Wait. What if I don't live forever as planned? Better put the government in charge instead. Yeah, that's the ticket! Let the government tell us all how to live and what we can do while we're alive. It's so much easier and simpler than letting people choose for themselves since they might not choose what I think is the right choice!

BW1's picture
BW1

@SamAdams: "I'd better make all of their choices for them since it's clear I'm WAAAAAaaaaay smarter than they are!"

It would seem you're not, based on your reading comprehension.

Nowhere did I say ANYTHING about placing the government in charge of anything. You asked why people around here would disparage any business, and I answered your question. PRIVATE ACTORS DISPARAGING (i.e. speaking ill) of a business is not government action to restrain it, nor is it a call for same.

That people are free to run and/or patronize such a business does not mean the community wouldn't be better off without it, or without a market for its services. Don't confuse the acknowledgement of peoples' stupidity with a call to make their decisions for them.

Maybe, rather than jump on something I did NOT say, you would be better off combing your OWN past comments for all the times you've fallen off the limited government wagon and played the statist when it served a cause you favored. Hint: I pointed most of them out at the time.

BW1's picture
BW1

.....and suddenly, Sam becomes oddly silent...

looking around

I would agree with the comments pertaining to possible stolen items being offered for cash. As salvage yard businesses that deal in scrap metal, copper, aluminum etc. The sellers identity should be checked and filed. Pawn shops have to ask for identity and check against a list of known criminals. They also must hold the items for a specific period of time before reselling. This allows for time for the local police departments to check inventory against reported stolen property. Don't be naive a lot of stolen property is brought into these places, if it is easy it breeds crime.

2cents's picture
2cents

A sad sign of the state of our economy. Not emptying the penny jar to take a vacation but cashing in your jewelry to pay the mortgage : (

arnmcrmn

To all the haters.....nobody is forcing you to go to this store and turn your jewelry in. Many people hate Ebay and do not know how to use it. Also, to use ebay and accept payment you have to have a paypal account, which is linked to a bank....which many people in desperate need of money do not have an account(s) with a bank.

Oh and btw, profit is not a bad word.

BW1's picture
BW1

You need to read more carefully; none of what you're saying has any relevance to the posts to which you're responding. No one has said what you think they did.

BW1's picture
BW1

"Predatory. Capitalizing on those that can least afford it. Paying 50 percent for gift cards. Cash now, cash in your structured settlement. Lottery tickets. Pawn shops, gold and silver exchange."

More like freedom. No one is forced into any of those deals at gunpoint. You can readily find deals to get 80% or more for your gift cards, and no one made you buy them, or have friends to inconsiderate to put more thought into gifts. The markdown at pawn shops and metal exchanges are the cost of poor planning and badly allocating one's resources. Structured settlements are negotiated by the beneficiary or by someone who answers to the beneficiary. Time is money, convenience is money, so pick your priorities.

As for your bank, where do you get off assuming that they would set up, run, and maintain all the infrastructure for processing checks out of the goodness of their hearts, just so you wouldn't have to be organized enough to get cash ahead of time for the baby sitter? Are all their employees also supposed to work for free because you're either too lazy or disorganized to stop at an ATM? If your babysitter had any business sense, she'd tell you to make it $35, charging $10 more for her time in having to go to the bank.

Lack of organization, self-discipline, willpower, foresight, math skills, or good priorities on one person's part does not constitute a reason to forgo earning a living on another person's part.