12293 Seminole Blvd. Largo, Florida 33778
727-586-0414 877-619-3919
10 am to 6 pm M-F
10 am to 5 pm Sat
The company Gold Kit claims it has an easy way to get you cash fast, by turning your gold into green. According the an ad on the company's website "It's the safe and secure way to convert gold jewelry into quick cash.” Dan Rodda of Yates Jewelers in Tampa, wasn't convinced. "How would they be able to determine if they're getting a fair price for their gold?” Rodda asked.
Rodda's also in the business of buying gold. Only when he does it, he's face to face with the seller. He wanted to put Gold Kit's claim to the test by mailing his own gold, a gold earring and a gold men’s wedding band. He weighed it and said he would buy the jewelry for $90.20, based on the value of gold that day.
To be fair, Taking Action Reporter Kerry Kavanaugh conducted her own test. She brought different jewelry to Arnold's Jewelers in Largo.
Owner, Ray Arnold, evaluated these a set of matching 14 karat gold bands. Then he weighed them. "We would be purchasing this today for $105.06” Arnold said based on the price of gold that day.
A couple of weeks later, The Gold Kit checks arrived in the mail. Gold Kit sent Dan Rodda a check for $12 for the earring and the ring, $78.20 less that what Rodda would have paid for the gold. Gold Kit sent Kavanaugh a check for $15 for the matching bands, $90.06 less that what the Largo jeweler offered.
Gold Kit does have a satisfaction guarantee. You can return you check, uncashed, in exchange for your jewelry. We did, and all of jewelry was safely returned at no cost.
Taking Action Reporter Kerry Kavanaugh contacted Gold Kit to find out why their offer was considerable less than what the two separate jewelers were willing to pay.
"Dear Ms. Kavanaugh:
I am writing in response to your May 28, 2008 email, in which you requested information about how GoldKit values gold and pays consumers. We have been in business for almost 20 years, and we have been a member in good standing with the Better Business Bureau for over 10 years.
To date, GoldKit has paid out millions of dollars to hundreds of thousands of people. We pride ourselves on offering our customers a service that allows them to sell their jewelry without hassle or obligation. For almost two decades, more than 95% of our customers have accepted the checks we offered for their jewelry, and a significant number have come back repeatedly.
Our return rate has remained below 5% even as our business has grown substantially. The amount we offer customers is typically based on a discount to the melt value of the item (i.e., the value of the gold in the item based on purity, weight and the then-prevailing trading price of gold, less the refinery costs associated with extracting the value from the item).
The discount is based on the cost we incur to advertise our service, the expense associated with operating our business, and market factors. Market factors include, among others, our desire to maintain our high rate of customer acceptance of our checks.
In our experience, people do not use our service based on statements of return or because of claims of price competitiveness. Customers come to us because our service is fast, friendly and free. Our transactions happen entirely through the U.S. mail, and there is no “haggling."
We have again examined the GoldKit advertising materials and we do not see the pricing promise that you suggested was there. That said, the “bottom line” of our business is that customers have the right to decline our offers and we, in turn, respect their decisions. As indicated in our guarantee, any customer who is dissatisfied with our payment may simply return our check and get their jewelry back at no expense to the customer. It is always possible that another buyer could have lower expenses and offer higher prices. The customer has the absolute right to forego the convenience of a mail-based transaction in favor of traveling to store-based buyers in the hope of receiving a higher price. We trust this letter is responsive to your inquiry."
Fox 13 News came into Arnold Jewelers in April 2009. Ray Arnold, owner, comments on these potential new laws.
It's A Smart Time To Sell Gold ...
To get the highest price for your gold, it is important that you shop around, especially if it is the first time selling. Compare rates and terms. Ask these questions-
1. If selling gold, how much are they paying per pennyweight? If silver, how much per ounce?
2. How much is their minimum order to receive the price they just quoted you?
3. Is there a minimum order you must sell to get the price they are quoting?
4. Do they have a brick and mortar store that you can visit, or do they operate online only?