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Cash converters

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I have used them to buy and sell goods on a number of occasions. I recently wanted to sell a small gold chain which was unwanted. I know it was bought in the last 6 months from a jeweller and cost £90. I visited the Hillsborough store where one of the staff weighed it (5 grams) went to speak to a colleague and told me "I have spoken to my Manager we would definately scrap this" and offered me £25 which I refused.

 

I looked on line at scrap gold prices which were over £10 a gram for 9ct gold. I contacted Chapel Jewellers in Sheffield by phone they said they were offering £11.74 a gram but were currently closed until mid February following an attempted ram raid robbery. However they asked where I lived and gave me contact details for other gold buyers in the area. I eventually sold it for £10.50 a gram ££52.50 received cash over the counter.

I was shocked by the offer from Cash Converters who obviously wanted to make 100% profit by selling it on to a reputable gold buyer.

 

I called a couple of other gold buyers who wouldn't give me a ball park price over the phone saying "We need to see it our offer will depend on a number of factors like saleability condition etc"

That shouldn't prevent them on giving you a price based on scrapping the item where such matters aren't relevent! 

So if you are looking to sell gold. 

Do a bit of research, use a company who will give you a ball park scrap price when asked. 

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These cash converter places are so British. It's the UK version of the junk cycling in Amsterdam asking everyone if they want to buy his bicycle for a tenner.

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Cash Converters is only good for one thing ..... getting your tools back after your vans been broken into.

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It is noticeable that Cash Converters often sell used goods at a higher price than they can be bought new elsewhere.

Edited by Phili Buster

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Pawn broker trying to make maximum amount of money / profit.

 

It's not really that surprising.

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Maybe it's not surprising they want to make maximum profit. Having said that the Jeweller/Pawnbroker who bought it paid a fair scrap price and will no doubt make money by selling it as second hand goods. Chapel Jewellers explained they pay 90 to 95% of the current scrap price and get 97% for any scrap they sell on. Small margins but probably high volume because they are paying the higer prices. The jam on the 'bread and butter' for anyone buying at scrap price is selling some items as second hand retail goods.

The Cash Converter offer was a blatant rip off. Anyone giving you "We can't give you a price till we see the item of gold" is, in my view, dodgy. There is a price they are prepared to pay if the item is scrap where the only thing that matters is:

What does it weigh and what carat gold is it? What they want you to do is schlep down to the shop and think "I can't be bothered to go somewhere else" and take their offer.

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4 hours ago, Phili Buster said:

It is noticeable that Cash Converters often sell used goods at a higher price than they can be bought new elsewhere.

CEX are the same with gaming products. 

 

Few years ago I wanted a specific GPU but it was just out of my budget new from a reputable company. 

 

Walked past a CEX store and saw the GPU in the window to check the price. It was marked at Grade A, no box and yet it was still 15% more expensive than new. 

 

Luckily a few days later I got an 'newsletter' email from the aforementioned reputable company offering me 10% off and free shipping which just scraped inside my budget 😊

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5 hours ago, Eric_Collins said:

Cash Converters is only good for one thing ..... getting your tools back after your vans been broken into.

This and it's probably half the reason they overprice stuff, have to take into account all the stock they lose due to it being stolen.

 

I can't say I've been into one of their stores in a long time, prices have always been far too high considering the stock.

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It's hardly surprising that a second hand retail shop can't compete with a specialist gold trader. I've sold gold to Chapel jewellers in the past because they offered way more than the other jewellers who weren't much better than the pawn shops, Chapel state they pay the highest prices in Yorkshire. 

 

You should always shop around and find the places likely to pay most for the item, it's horses for courses. Just like CC wont compete with The Chapel on gold buying, the Chapel Jewellers wont compete with CC on used laptops and vacuum cleaners.

 

Oops just re-read and understand that you didn't sell to Chapel but other gold buyers they recommended, but the point still stands that specialised gold buyers pay more than second hand pawn shops.

Edited by Steelworker
inaccurate

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But in some ways they do compete. Cash Converters sell watches and Jewellery at second hand prices similar to Jewellers and Pawn Shops and they are probably buying those items at bargain basement prices from people who know no better. Of course gold buyers pay higer prices in my case Chapel Jewellers would have given me 59 qiud I accepted 52. Cash Converters offered 25 that's not competition it's robbery!

IT PAYS TO SHOP AROUND.

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To be fair with gold for scrap it's a very simple process for the shops buying the stuff.

 

They know the price they will get for it on a given day, they know any gold can be sold on immediately without problem.

 

It's simply a question of what profit margin they want to make.

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