Gullible Gold Sellers May Get Gored on Gold Price: Consumers Beware
FORT LAUDERDALE, Fla., Jan. 10, 2013
FORT LAUDERDALE, Fla., Jan. 10, 2013 /PRNewswire/ --As cash-strapped
consumers sell their gold to pay for everyday necessities, complaints against
gold dealers have risen. Among the worst offenders according to a recent
tally on the Better Business Bureau's website, BBB.org, are cash for gold
companies advertising heavily on television. One company received 119
complaints in the previous 36 months. Another received 81. Complaints range
from pricing discrepancies and misleading advertising to customer service
issues and claims for lost shipments.
"Not every Internet gold buyer is dishonest," says Michael H. Gusky, whose
company, GoldFellow.com has served over 250,000 customers and is rated A+ by
A 30 plus-year gold jewelry industry veteran, Gusky was invited to appear on
an episode of last season's America's Money Class with Suze Orman to help
teach consumers how to sell gold.
"GoldFellow.com was created to provide consumers a safe, competitive and easy
method to sell unwanted gold, sterling silver, platinum and diamonds," says
He attributes his company's success and rapid growth to a higher level of
trust achieved through his company's transparent business practices and higher
"The owners of GoldFellow® are the most honest and ethical dealers I have had
the pleasure to do business with," says Carla Stern who first tried to sell
her unwanted jewelry to two other Internet gold buyers. "GoldFellow® paid me
$1,800 for the same package I had sent to a highly advertised on TV and
Internet dealer, who tried to pay me only $310," explains Stern.
Gusky is not surprised by Stern's experience.
"We could spend our money on commercials – or we could put the cash in our
customer's pockets. We prefer to pay the customer higher prices," he says.
According to Gusky, the way gold is valued causes confusion. In a phone
survey conducted by the company, consumers reported the primary obstacles to
selling their unwanted gold jewelry was uncertainty about their gold's true
value and unfamiliar weight units like pennyweight (dwt), gram and troy ounce.
"We realized we'd been communicating our pricing in the wrong language,"
explains Gusky. "As consumer advocates, we'd focused on educating the public
and built an informative website but we needed to find a way to illustrate
gold value so it could be more easily understood."
To complement its online payment schedule, GoldFellow® created the interactive
Gold Payments Gallery which displays photos of actual jewelry the company
purchased along with the item's karat, weight stated in both grams and
pennyweight and price paid.
"Customers tell me they like looking through the photos and finding items
similar to those they want to sell," reports Mary Hamilton, a customer support
manager who has worked for Gusky since 1987. "They say the photos help them
understand what to expect for their own jewelry and really appreciate our
According to the company's website, www.GoldFellow.com, GoldFellow® posts and
updates its payment schedule daily, provides every customer with free, insured
FedEx® shipping and posts the customer's itemized settlement offer in a
password protected environment where it must be reviewed and accepted before
they are paid.
"Do your homework before you sell your gold," cautions Gusky.
Gusky recommends always checking potential gold buyers out with the Better
Business Bureau. Look for accredited companies with A+ rating and few or no
unresolved complaints. Ask several gold buyers how much they would pay you
for one single pennyweight of 14 karat gold when selling less than one ounce,
and then compare prices.
"And for goodness sake, never drop your valuables in a regular mailbox, warns
Gusky. "There's no record or proof that it has been mailed - and it may not
be fully insured. Read the terms and conditions on the gold buyer's website."
Gusky, and his wife Robin, who is also active in the company, earned their
reputation over 30 years in the gold jewelry business. Their previous company
grew to become the largest karat gold jewelry manufacturer in America,
culminating with a sale to Warren Buffett's, Berkshire-Hathaway in 2007.
Contact: GoldFellow, LLC, +1-877-696-5346; or Media Contact: Janis S. Rafkin,
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