Goldbuyers Australia

Dogmatix

Dogmatix

Active Member
I've heard a bit about Goldbuyers, and i've seen their ads.

My understanding is that the offer about 1/3rd of spot, which isn't such a good deal. I'm fairly sure the Perth Mint offers one of the best commercial 'gold buyer' services actually.

Anyway, speculation aside, I thought i'd have a look at their website.

Have a look at their testimonials, particularly the first one:

http://www.goldbuyers-international.com/au/about/testimonials

$358!

I guess when people have no idea what they're selling, they will get fleeced won't they :/
 
"a few old gold rings (dated from the 80's) a chain, an old bracelet, a necklace and walked away with $358. I was blown away"

take a few rings to be 3 = what 10 - 15 grams?
a chain ???? maybe 3- 20 grams
a bracelet 10- 30 grams
and a necklace 5 - 20 grams..

fleeced like hell anywhere from $1250 - 4200 if it was 18k+
 
Yes, it's a legalised scam.

But is that not the core premise of business prowess in Australia (and largely, the entire world) today?

If you can rip someone off in plain site with a smile - it's not a scam, it's smart business?

Integrity & ethics became a non consideration in business conduct years ago sad to say and absolutely it doesn't extend to such obvious methods as this, and often on a MUCH larger scale.

Look at the global property market for example. Massive, legalised scam!

The Banking cartel is even bigger!

But I digress...

Gold buyers will always rip people off and the social media who are normally all over publically naming and shaming shonks deliberately ignore these kinds of scams if they, or their financial backers, have a vested interest in the outcome.

The only way to combat it all is to remain vigilant, cynical and live by the adage 'if it looks too good to be true, it probably is'.
 
These type of kiosks are a sheeple magnet.

Stackers only ever go there if they're bored and want some amusement at the expense of the underpaid and usually monetarily undereducated staff.
 
Nope. It's jewellery box strip mining with low extraction costs per oz. 99% of it goes to the melting pot.

Guess where most 1oz cast ingots come from.
 
LTEK4NZ said:
does anyone know if you can buy from the kiosks?
Click to expand...
No! I have approached a couple of these kiosks offering to pay spot for their Sovs, Krugs and gold coins.
They have always refused.
 
Aurora et luna said:
LTEK4NZ said:
does anyone know if you can buy from the kiosks?
Click to expand...
No! I have approached a couple of these kiosks offering to pay spot for their Sovs, Krugs and gold coins.
They have always refused.
Click to expand...
even paying spot... now that's just sad.
 
Aurora et luna said:
LTEK4NZ said:
does anyone know if you can buy from the kiosks?
Click to expand...
No! I have approached a couple of these kiosks offering to pay spot for their Sovs, Krugs and gold coins.
They have always refused.
Click to expand...

I guess it is just not part of their business model?

They might have some funky taxation arrangements actually, non-bullion grade gold would attract GST?

But if they melt it into 999 gold perhaps they can avoid that part.

They certainly do spin some $hit though, this from one of their directors:

"Gold Buyers unprecedented growth so far can be very much attributed to the relationships developed throughout the company, the leadership exhibited across each country and their ability to work as a team. I feel proud and very honored to be on this amazing journey... further developing our international teams and bringing our culture, passion and unique opportunity to the rest of the world."

Mrs Wendy Stewart
Click to expand...

Nothing to do with an increasing gold price, gold somewhat in the media spotlight, people running out of cash and being forced to sell assets, and a business model that relies on clients being uninformed about the true value of their assets.
 
It's simply not part of the business model - all gold goes "back to base".

Pretty sure the people at the desks are just employees with no authority to act on such requests.

At the end of the day - it's a business aimed at people who wouldn't know to go anywhere else to sell gold for more money. Pity the fool who doesn't do due diligence before selling valuables.

It's not a scam, it's just priced well below what can be obtained elsewhere. I heard a person being offered $300 for a sovereign in a reputable established coin shop a few days ago when spot value was $390, and a gold dealer within a few minutes walk would have paid spot - there's no law saying you have to be paid spot for your metal.
 
That's true, but as auspm was saying, there are some ethical issues doing business when you're offering such a long way from metal value.

I understand that traders have to make a profit or else there's no point. But rorting people isn't simply making profits IMO.

I wonder if they take the gold offshore to process and avoid CGT, etc?

I also wonder if because they change the product from jewelry into bullion, whether the product then changes form and is not longer applicable for CGT in the same fashion. For instance, you could declare the CEO is a 'refiner' and pay him $1 million a day for his work, thereby turning CGT profit into wages instead.

I'm speculating now :)
 
goldpelican said:
It's not a scam, it's just priced well below what can be obtained elsewhere. I heard a person being offered $300 for a sovereign in a reputable established coin shop a few days ago when spot value was $390, and a gold dealer within a few minutes walk would have paid spot - there's no law saying you have to be paid spot for your metal.
Click to expand...

There is a case for disclosure and duty of care though.

If you do this sort of 'business' in the property market, you can get locked up. (underquoting)

In the gold market, it's fair game.


It's the sad reality of the modern business spectrum and whilst many will stand by and tsk tsk tsk in regret and disapproval, it seems to be the accepted standard in other forms of business.

The only measuring tool on business conduct today seems to be a) what's legal and more importantly, what can we get away with?

Goldbuying kiosks are profiteering on legalised unquoting, which hypocritically is unlawful in one business context, but perfectly fine in another.

*shrugs*

Caveat Emptor?

It's just a shame that the ethical business providers are so few and far between.

For example (*shameless plug*) Aurora et luna is one of the most ethically minded business partners I've dealt with in the metal trade game.

I just wish more business providers out there would follow suit, I've had to lodge a complaint with Fair Trading for a shockingly bad cleaner this week that ripped me off for $600. :/
 
I tend to disagree a little.

If people are selling an item, it is up to them to do due diligence on what is fair value. Goldbuyers offers a convenience factor that people obviously see as worthwhile.

Its not like the value of gold has been hidden from us and it is not difficult for people to work out true value of an item. People dont though and are obviously happy with that decision.
Cash converters and so many other business models thrive off this. At the end of the day, it is laziness on the part of the people that allows these businesses to prosper.

Also, for what its worth, the property market is full to the brim of people that make cash offers for houses that are substantially below fair market value. Granted not to the same degree as a ratio, but we are talking $0,000s less. This is not illegal and they are not getting locked up.

If by underquoting, you are referring to a real estate agent deliberately misleading potential buyers by listing or quoting a low sale price, then yes. That is illegal and unethical.
 
You could make the same statements about supermarkets paying 1c/kg for apples that are onsold for $5.99/kg.

Don't compare commodities to a regulated property market.
 
If by underquoting, you are referring to a real estate agent deliberately misleading potential buyers by listing or quoting a low sale price, then yes. That is illegal and unethical.
Click to expand...

By your logic though, is it not the duty of the seller to do their own research on the value of their property?

Not saying I don't agree with you, I would definitely say that personal responsibility plays a definitive role in both situations, just looking to bridge the gap in the logic is all.
 
wow..this is about gold and RE gets dragged into it by yours truly....love it LOL

edit: and its not a scam. the saying 'a fool and his money is soon parted' comes to mind.
 
auspm said:
If by underquoting, you are referring to a real estate agent deliberately misleading potential buyers by listing or quoting a low sale price, then yes. That is illegal and unethical.
Click to expand...

By your logic though, is it not the duty of the seller to do their own research on the value of their property?

Not saying I don't agree with you, I would definitely say that personal responsibility plays a definitive role in both situations, just looking to bridge the gap in the logic is all.
Click to expand...

It is the seller or buyers responsibility to do their own research on any transaction in any industry. To that, in any industry there are going to be entities that offer a 'cash' or convenience option that entails a higher profit spread.

Happy to leave RE out of it. At the end of the day Goldbuyers is running a business that can be paralleled across the board, what they are doing is not illegal and in fact, offering a service which is obviously embraced by Australian culture (read into that what you will).
 
I would add one more thing to that surmation though mickjohn.

Legal and ethical don't always go hand in hand.
 
There are always going to be unethical people in the world. It's just the way it is.

Rather than people have the responsibility of doing their own due diligence in this world we have abrogated the responsibility to govt.

The result is endless regulations designed to regulate bad behaviour. The ultimate way to do so would be to have a totalitarian govt where a small group of people are able to make any law they like and the rest of society has no choice but to abide by it, even if no-one is being harmed by them not doing so. Hmmm.....

Anyway, personally, I'm all for personal responsibility. Goldbuyers are making an offer. No-one is being forced to take it. Common sense people can and do look elsewhere.


auspm said:
There is a case for disclosure and duty of care though.
Click to expand...

What is duty of care exactly? And how should it be enforced?
 
Well somehow they have to pay for the booth in a heavily trafficed area of a shopping centre along with the rent for the space and they have to pay at least the minimum wage for the worker. Plus they have to train the worker to spot plated or rolled gold items or filled items etc. plus super etc. Then they have to pay for the transport and refining if that is what they do with it. And they have to make a profit.

Your coin shop owner is just going to flip a sovereign as is, and maybe they will only offer you the gold price and not the numismatic value.

I don't even have a coinshop anywhere near me so I would need to make the trip into town to offload spare gold. I would never give them anything myself but I have the benefit of this forum and I also "buy and hoard" I still own every piece of gold that I have ever bought!

At the end of the day if someone bought a gold sovereign 20 years ago and they get $200 for it they are getting a bit of a windfall themselves, they obviously feel it was well worth it, particularly if it was handed down by a relative.
 
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