I see all these commercials for companies who only buy gold from people. How do they make money off of this? What will they do with the gold?
Because they can pay stupid jewelry owner $400 per ounce for their gold, spend a small amount of money on processing it down & then re-sell it at $1000 per ounce.
Fundamentally the answer to any business question is: Because they are making a profit
4 Responses to “Why are there a lot of people offering to pay a lot of money for gold?”
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Because people have bought into the panic and think the world is coming to an end. They have driven up the price of gold to an artificial high.
Many seem to think that all the currency will be worthless and we will be in a society bartering gold for food.
It’s crazy.
References :
Because they can pay stupid jewelry owner $400 per ounce for their gold, spend a small amount of money on processing it down & then re-sell it at $1000 per ounce.
Fundamentally the answer to any business question is: Because they are making a profit
References :
They say they will pay a lot of money for gold, but you don’t know that until you get a quote.
People who buy gold, buy for a price that will allow them to resell at a profit. Bigger companies that buy gold, buy based on the estimated future value of gold. Gold is a commodity and future price can actually be estimated. It has increased in value and that’s the reason people are investing in it.
You can check the value of gold and the trend if you google it.
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Buying broken gold or unwanted gold and silver is a business that has been around for years. It has gotten more notice recently because gold has been jumping high these past 2 years, making it a hot commodity.
They as a business buy from lots of individual people and then sell in bulk to the refinery.
Gold is mined and we cannot get more than what is out there. Thus the broken/unwanted gold is recycled - once it gets refined and minted, it is then sold to the manufacturers to make into new jewelry.
References :
http://www.turnittocash.com - this is our business that we proudly and honestly conduct in Chandler, Arizona.