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Tv Adverts For Buying Any Gold

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I've noticed a rash of adverts on TV about swapping any gold for cash. It looks like a modern day pawn broker of sorts.

My question is, did gold merchants like these appear in previous recessions or is this a phenomenon of this credit crisis based recession only?

EDIT: typo - had a bit of wine! :)

Edited by Traktion

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Unbelievable these Gold adverts. Has been celebs front them to suck in the mugs, and the gold is then bought for a fraction of it's value. Preying on the desperate, it's like Dracula targeting a haemophiliac.

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I've noticed a rash of adverts on TV about swapping any gold for cash. It looks like a modern day pawn broker of sorts.

My question is, did gold merchants like these appear in previous recessions or is this a phenomenon of this credit crisis based recession only?

EDIT: typo - had a bit of wine! :)

The adverts are new but the phenomenon isn't. I recall some bod from Antiques Roadshow in the 1980's being interviewed on the news pleading for people not to melt down gold pieces as they would be permanently lost.

It's a sign to me that the gold ramping has gone far enough when people can get more money for a lump of metal than they could for it as a piece of worked gold.

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An article about a Jeweller in Exeter, featured in South West Business (25 July 09), who has been advertising and buying up scrap gold and coins.

http://www.southwestbusiness.co.uk/devon/E...il/article.html

Mr Doble said he paid a minimum of £4 a gram for nine carat gold and £8 a gram for 18 carat gold, as well as at least £100 for sovereigns.
:lol:
Mr Bushell said his company paid "competitive" prices depending on weight and carat. "People will leave shocked at how much they get," he said. "The average customer leaves with over £130."
:lol:

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I was in a curio shop recently - they buy old jewelery ect...... I spent about 2 hours in there browsing around - I love all that guff. anyway, in that time 3 people came in there with rings, necklaces, napkin holders etc - more people came in to try and sell the family PM's than customers buying stuff.

Edited by sbn

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I've noticed a rash of adverts on TV about swapping any gold for cash. It looks like a modern day pawn broker of sorts.

My question is, did gold merchants like these appear in previous recessions or is this a phenomenon of this credit crisis based recession only?

EDIT: typo - had a bit of wine! :)

I think this is a sign of a gold bubble rather than a recession. The last ten years has been a story of successive bubbles, and we haven't been in recession all that time.

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Gold rush at Birmingham jeweller

Jul 13 2009 by Jon Griffin, Birmingham Mail

THE worst recession for decades has triggered an amazing “gold rush†for Birmingham jeweller David Johnson - with £30,000 worth of takings pouring in every day.

David, boss of Midland-based Rex Johnson and Sons, is in the middle of his biggest trading boom for nearly 40 years, and it’s entirely due to the downturn.

Punters cashing in their jewellery are ensuring rich pickings for the long-established Midland jeweller - and a major increase in his workforce whilst many firms in other sectors cut back.

With gold prices at a near 30-year high, customers are beating the recession by turning personal jewellery into much needed cash.

David, whose business has mushroomed to include outlets in Birmingham, Dudley, Coventry, Sheldon and Bearwood, said trade was at its highest since the business was founded as world governments boost their reserves in the depths of the recession.

He said: “This is all down to the price of gold. Today, we are paying £171 an ounce for nine-carat.

“As a business, we have been doing £30,000 a day for the last 18 months. At the Dudley shop, we’ve had people queuing for an hour at a time.

“With the economic climate as it is, jewellery shops have not been taking that much money over the last 18 months.

“But we are getting around 300 customers across the business with their gold and I do not think we have even touched the pinnacle yet. We are having the best time we have had since 1972.

“We are getting everything from pocket watches to coins, from engagement rings to wedding rings. A lot of people do not realise the value of what they have got.

“We were doing £5,000 a week two years ago and now we’re doing £30,000 a day. We had a workforce of eight two years ago and now we employ 50 people.

“From the Old Testament days onwards, the one thing that somebody could turn into currency was gold, and that remains the case today.â€

David’s firm recently opened Rex Johnson Online in Bearwood, following on from other launches in Coventry and Sheldon to add to the original branches in Birmingham and Dudley. The group is now looking to take on more short term leases of former post offices and banks to add more outlets, with plans to expand into Edinburgh, Aberdeen and elsewhere.

http://www.birminghammail.net/news/birming...97319-24135573/

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IMPO these adverts are the classic sign of a crash about to happen.

Disagree. If they were BUYING gold then I would agree. Instead all it shows is the desperation that people are in, in order to get cash. When the masses are flocking to buy then I'll be offloading.

In the short term, sure it may lead to a temporary 'glut' of gold on the market. But this will be swallowed up by Eastern investors quickly enough.

Someone told me that personal ownership of bullion (as opposed to jewellery) was illegal in China until not so many years ago?

Even if untrue, the increasing per capita wealth of the Chinese (combined with a greater cultural affinity to gold) will lead to increased demand.

One other point made to me recently was that the Keynesian type anti-gold mentality is really a Western idealogy - and that this is not shared by the 5 or so other billion people on the planet. Who are we to argue with them?

Edited by anonguest

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IMPO these adverts are the classic sign of a crash about to happen.

An interesting thought, but we have not had the gold frenzy yet, like in the 1970's when you could casually go down to your local Midland or National Westminster bank branch and buy Krugerrands over the counter.

I personally will be getting concerned when I start seeing "gold investment seminars" being advertised.

Edited by Take Me Back To London!

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"We were doing £5,000 a week two years ago and now we’re doing £30,000 a day."

:blink:

It sounds like joe public is seriously in the sh*t. What happens when there's nothing left to sell?

Yes, the public are absolutley desperate for cash and they will even more annoyed when gold has gone up considerably more than the price they got in mid-2009.

“

But we are getting around 300 customers across the business with their gold and I do not think we have even touched the pinnacle yet. We are having the best time we have had since 1972.

If it was the best for them since 1972, with inflows of gold from the public, taking into account what gold did in the 70's, then there is still another 7 or 8 years to run.

In 1972 the average price of gold was $58 an ounce and by 1980 the average price had risen to over 10 times that to $615 (peaking at over $850).

Edited by Take Me Back To London!

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Disagree. If they were BUYING gold then I would agree. Instead all it shows is the desperation that people are in, in order to get cash. When the masses are flocking to buy then I'll be offloading.

In the short term, sure it may lead to a temporary 'glut' of gold on the market. But this will be swallowed up by Eastern investors quickly enough.

Someone told me that personal ownership of bullion (as opposed to jewellery) was illegal in China until not so many years ago?

Even if untrue, the increasing per capita wealth of the Chinese (combined with a greater cultural affinity to gold) will lead to increased demand.

One other point made to me recently was that the Keynesian type anti-gold mentality is really a Western idealogy - and that this is not shared by the 5 or so other billion people on the planet. Who are we to argue with them?

I guess gold traders are finding high demand for their product from speculators which they are having difficulty meeting, so they are trying to find new buyers for it. It does seem to be a buyer pull situation rather than a seller push, so that isn't going to lead to a glut.

I'm not sure if there will be an increase in demand in China, but I would be surprised if it was enough to replace the current buyers strike in India

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IMPO these adverts are the classic sign of a crash about to happen.

I'll hold you to that 1!

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I've made a few thousand promoting these "money 4 gold" sites on the interweb over the last few months via CPA offers. I get paid if they signup for a "G-Pack" an envelope that they can send back with their jewellery. There are quite a lot of refiners. Its mainly getting rid of junky gold jewellery and it gets melted down. Doubt if there is much gold in Elizabeth Duke jewellery though. I saw one offer being promoted by Anne Diamond

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I couldn't contain my laughter, first it was pop your old mobile in an envelope and we will send you what we think it is worth, now it is we will send you an envelope, place your old broken jewelery and gold into it post to the address above and we will value it on our terms and send you the cash....yeh right. :lol:

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I couldn't contain my laughter, first it was pop your old mobile in an envelope and we will send you what we think it is worth, now it is we will send you an envelope, place your old broken jewelery and gold into it post to the address above and we will value it on our terms and send you the cash....yeh right. :lol:

The phone ones don't work like that. They tell you what you'll get on the website first, and they do pay up. The £100 in others half account from envirofone is evidence of that.

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IMPO these adverts are the classic sign of a crash about to happen.

whatever gold will be worth in 10 years it will be a heck of a lot more than those paper notes you will use to light your fire with

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IMPO these adverts are the classic sign of a crash about to happen.

I haven't seen a clearer signal of that particular market going titsup than this...

http://www.telegraph.co.uk/finance/finance...g-machines.html

TG-Gold-Super-Markt aims to introduce the machines at 500 locations including train stations and airports in Germany.

The company, based near Stuttgart, hopes to tap into the increasing interest in buying gold following disillusionment in other investments due to the economic downturn.

Gold prices from the machines – about 30 per cent higher than market prices for the cheapest product – will be updated every few minutes.

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IMPO these adverts are the classic sign of a crash about to happen.

Or it could be the sign that a new bubble is forming as people start to pile out of paper money, in the expectation of inflation.

Of course, as with any bubble, it would be self fuelling once people start to pile in. It also has that "something special" that people associate with security. In the same way people piled into property ('safe as houses!'), gold is something people expect to be expensive, a store of wealth and I could see the psychology behind people piling in to it.

Who knows what the next bubble will be though? It would be very dangerous for the banks if gold became the investments of choice though as it would begin a repudiation of their credit money. Hmm... maybe this would be a good thing if it happened then! :lol:

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