Gold Party Scams

What to look for in a gold party scam

 

The gold party scam comes in two basic varieties. One is a gold buying company that offers you an opportunity, usually through a website, to get into the gold buying business with gold parties. And the second is a gold buyer that actually works for a cash 4 gold type of operation that simply scams the seller buy offering the same low-ball, high pressured sales tactics they use for their mail in business. The best way to protect yourself from these scams is to not deal with them. If your gold party representative is paying below 50% spot price, then do not deal with them. This is the job of the host, and it is always good to ask your host if they have a contract that states this with the gold party gold buyer.

 

The latter scam is pretty simple. The old cash 4 gold companies saw their profit margins dipping because of the new gold party craze. So they decided to infiltrate it with their own business model. They simply hired local people to find hosts for the parties and then set the buy rate at a outrageously low percentages with high pressured salesmen. Sometimes they would even over-calibrate their scales or misrepresent a sellers karat to carry out the scam. This provided the cash 4 gold two advantages. First they invaded the friendly confines of the gold party business model, and second they created a mistrust environment around the gold party idea adding more to their bread-and-butter mail in service.

 

 

The second part comes from these large cash 4 gold companies building the idea of getting someone involved in buying scrap gold through their website. This also has two distinct varieties of the gold party scam. The first is the faux refiner scam and the second is the minimal gold party payout scam.

 

The faux refiner scam is a website that claims to be a gold refiners looking for representatives to work for them to buy gold through gold parties. This is nothing but a scam and in fact these websites are nothing but cash 4 gold companies that are middle men for the real refiners. They again will only pay small percentages while the representative which is doing the actual work is either getting little to no profit or……losing money altogether. This kind of gold party scam usually ends up with many extremely upset representatives that realize they were flat out conned.

 

The minimum payout scam starts out the exact same way. The website will claim to be a refiner looking for representatives to get into the gold buying business. Again this scam is because they are not a gold refinery and are simply middle men. They promise and percentage of the profit margin (usually 10-20%) to the host and or coordinator. Again this gold party scam usually leaves the representative bitter and broke. Even at 20% of a payout is a flat out robbery when you are doing all the work for someone that simply ships the gold you collected to a real refinery and profits from it. A good refinery will pay at least 90-95% of spot price. These companies will quote you around 75% leaving you to have to buy at your gold party at 50% of spot. So in this gold party scam everyone but the website owners losses.

 

So you may be asking why not just sell your gold directly to the refiners? Wouldn’t all gold parties be a scam if they buy at 70% of spot and then sell for 95%? No for one thing a good gold refiner is hard to find. Most companies that claim to be gold refiners on the internet are nothing but middle men for the real refiners. The second thing is that gold refiners only deal in bulk amounts. They will not pay or accept small shipments of scrap gold. So for the average person, dealing with a real refiners is not an option.

 

So for someone looking to enter into the gold party business what is it they have to look out for to avoid being scammed?

 

1. If you are not in the gold party business working for yourself, you are not going to profit. Simply put, websites looking for you to become their representative, are nothing but scams.
2. You must find a list of reputable gold refiners. Most internet sites that claim to be a refiner, are nothing but con men. If they are unwilling to quote you a price above 90%, they are a scam.
3. A good refiner is worth its weight in gold. You need to have a few refiners to get the best price. Some charge fees with high payouts (98%) while others charge no fees and pay around 95% but require a high shipment.
4. Again if it is not your business, run by you, then you are most likely being taken advantage of in a gold party business scam.
5. Finding a good gold party business training course does not have to cost you money. Look for free resources on YouTube and other video sites.

 

 
Look for more information on Gold Party Scams and more articles on how to avoid Gold Party Scams.