Aaargh, these be the End Times, I tell ee.

[avevale_intelligencer]

Is it me, or are there suddenly (in the last few weeks) lots and lots of adverts on TV for people who want to buy "unwanted" gold jewellery?

If, as they say in these adverts, the price of gold is at an all-time high, isn't it rather poor business sense on their part to be buying right now?

Is it not more likely, perhaps, that they are trying desperately to amass stocks of gold because everything else is about to go through the floor and/or down the plughole?

Not that it affects me--I have one count it one item of gold jewellery, and they'd have to cut my finger off to get it--but if more proof were needed that things are going to get much, much worse before they even think about starting to explore the possibility of setting up a committee to discuss issues around maybe getting a little bit better...then I can't think of a more likely piece of evidence than anonymous bods trying to corner all the precious metal they can get their hands on.

Time to lose myself in a good book. Or a fast smallship. Or something.

Comments

[filkertom.livejournal.com]

Some of it is pretty straightforward scam.

[hrrunka]

I suspect they're just hoping that folks are feeling the pinch, and that they will part with their gold for a good deal less than its present market value...

[keristor.livejournal.com]

A smallship would be my preference. Or even a passing Vogon ship...

Gold is, according to the BBC, up at or close to 1000 currency units (I unremember whether they were US or UK currency units) per ounce, which does seem ridiculously high to me. As you say, buying when high sounds strange, I do wonder what the scam is. (I haven't seen any TV adverts at all for a week, and then only a few between Scrapheap Challenge reruns, so Ihaven't seen the ones in question.)

[filkerdave.livejournal.com]

I suspect that A) they're buying at less than the current market value for the gold (or taking a much higher than normal percentage for the precious metals market) and B) hoping it will rise further.

I don't quite understand why gold is as high as it is

[the-magician.livejournal.com]

There was a really good article on this somewhere, but basically it's a good hard thing you can actually hold in your hand, which means it's a lot better than paper currencies, stocks, bonds etc. for emotional reasons.

http://news.bbc.co.uk/2/hi/business/7450751.stm

http://www.321gold.com/editorials/phillips/phillips090606.html
(read near the end, after silver)

[the-magician.livejournal.com]

also, as it says, the cost of mining and refining gold is around $600/ounce, so a 30% markup from refiner to street price is probably not outrageous as there is a limited supply and prices rise (it's pretty standard economics!)

[filkerdave.livejournal.com]

30% markup I could see. The markup is currently a lot higher than that.

[the-magician.livejournal.com]

yep, and there are people still rushing forward with cash to buy a limited resource, so the owners of the gold are rubbing their hands with glee (not the tv show!) and basically treating it a bit like an auction and setting higher and higher prices and people are still buying ... the dollar isn't about to collapse (I think!) so it's best to wait until the gold price drops again as it will almost certainly do in the next year ... but how far, no idea, but I'd guess it's not going down to $300/ounce ever again (unless someone dumps hundreds of tons of gold on the market as Gordon Brown did ...)

[hurdle1gal.livejournal.com]

Those ads have been running in the USA for the last year, with the same line "gold is at an all-time high". Doubt it's been at a high for a whole year... but like you, I only own one real piece of gold jewelry and they would have to cut off my finger to get it.

Mostly a scam

[the-magician.livejournal.com]

There have been many articles about how they badly undervalue your gold, how they lose it, how you don't get back what you sent when you decide not to take their offer, how they can charge for their evaluation service if you decide not to take their offer.

You send them nice gold pieces, you get offered a "scrap" value (based on weight and karat) minus various admin costs ... you'd get a better deal going into a local jewellers or cash converters, and I wouldn't expect you to get a good deal there either, but at least it would be in person and your gold wouldn't be lost or stolen.

http://cashforgoldscams.com/scam30.htm
http://cashforgoldscams.com/scam4.htm
and many many more

[melodyclark.livejournal.com]

My father used to think the end was coming for everything always. He amassed gold, K-rations, shotguns, etc. All that happens is that the price of gold goes up (because of people who think like my father) and people have to (many years later, when their fathers have shuffled off) clean out closets filled with K-rations and shotguns (it's not fun and somewhat scary in the second instance).

Nothing is going to happen to currency. It will always be internationally supported as socialism may be evil for the little people like us but manipulating the circumstances of fate for the rich is, of course, a noble deed.

Oh, and yeah, it's a scam.

[pink-sweater-uk.livejournal.com]

"I have one count it one item of gold jewellery, and they'd have to cut my finger off to get it"

Beware Of Passing Gollums...