From Cash4Gold Chief Executive Officer Jeff Aronson:
In less than two years Cash4Gold has revolutionized the centuries-old gold business, providing American consumers with a simple and secure way to monetize unwanted jewelry and other gold items. Over that period of time, we have conducted more than 700,000 transactions and we now employ more than 300 people in our Florida headquarters.
I am particularly proud of our remarkable record of consumer satisfaction.
Cash4Gold buys gold for melt value and not for resale. I have made it clear, in my public statements and on our Web site, that we are not the best price option for all customers. If customers don't like our offer, their jewelry is returned at no cost.
I understand that the gold market is complex and I applaud ABC's efforts to educate consumers about the gold-buying industry. However, your price comparison is deeply flawed, starting with the fact that you didn't send the same jewelry to each company for evaluation. Even if jewelry is "similar" in appearance, it may not be similar in quality or purity, which could have a significant impact on "melt value."
Cash4Gold is the world's largest buyer of gold from the public. Some of its less scrupulous competitors have attracted customers only by piggybacking on Cash4Gold's success without spending any money on advertising.
I encourage you to look more carefully at the real market for gold before accepting the appraiser's view that you should be able to get 85 percent of the spot gold price for the jewelry you sent us. I do not believe any gold buying company that purchases for melt could pay 85 percent of spot gold for a tiny amount of gold and stay in business. It would lose money on the processing and acquisition costs. Cash4Gold bases its offer on the daily gold prices, the purity of the gold being offered and the quantity. We pay our customers between 20 percent and 80 percent of the spot price, with the larger amounts going to those people sending in more than 10 ounces of gold.
When customers are dissatisfied with price, we frequently offer to have the package reviewed by our separate estate buyer division which buys jewelry for resale. As we explained above, a buyer that buys jewelry for resale takes into account the artistic value of the jewelry as well as the gold content and frequently can therefore afford to pay a higher price than a buyer that buys for melt.
According to our records, you were offered a higher price because the estate buyer assigned a higher value to the diamond ring you included with the gold jewelry in the package. Apparently our customer service representative did not explain that process to you correctly. We apologize for that mistake.
Response From Cathy Lerman, the company's general counsel:
Cash4Gold has conducted more than 700,000 customer transactions and the BBB complaints represent less than one-20th of 1 percent of those transactions. We pride ourselves on our high customer satisfaction and work hard to resolve any customer complaints quickly and to the satisfaction of our customers.
Our current Better Business Bureau ranking is based, mistakenly, on four unresolved complaints. We have advised BBB that each of those complaints has been fully resolved. Once BBB confirms these resolutions and updates its database, we expect our rating to improve.
Cash4Gold is not and has never been under investigation by the Florida Attorney General or the Department of Agriculture and Consumer Services.
About two dozen Cash4Gold customers have complained to the state, and like the complaints made to the BBB, the company works diligently to resolve every issue. All but a few of the complaints have been resolved and we are working hard to resolve all complaints.