Haven't you heard? The cat is out of the bag!

At the peak of the original online 'cash 4 gold' boom in 2011, online gold dealer Jon White launched the cats4gold.com parody site. With the witty strapline of 'swap your shabby tat for a tabby cat', Cats4Gold.com quickly went viral across the Internet.

Fast-forward to 2024, when gold prices started rocketing again and the proliferation of online 'cash for gold' sites started emerging again, it seems like a jolly good time to dust down the old site and give it a new lease of life.

The new site continues to parody the free-post cash-for-gold business modal, which we think offers consumers a very poor deal. We've gone into a little more detail as to why customers should think twice before selling their gold to a free-post service and hope it's been delivered in a humourous and memorable way.

"If we can help to inform consumers of the pitfalls of selling to some these free-post services by using a bit of catty humour, then re-launching Cats4Gold has been a worthwhile exercise" - Jon White, Director of Gold Traders UK Ltd.

If a cash-for-gold company can't or won't give you an up-front answer on what they genuinely pay per gram, it's likely because their rates are low and they don't want you to realise this until they have your gold. 

About Gold Traders

Since 2008, Gold Traders has sought to illuminate the cash-for-gold market and the often poor deals given to cash-strapped sellers, many of whom are some of society's most vulnerable.

Gold Traders launched in 2008 with the clear mission of offering transparent pricing, allowing customers to make an informed decision BEFORE sending their items away. 

Our business is based on trust and integrity. We give up-front valuations based on the real-time prices we're genuinely paying our customers.

In 2023, Gold Traders became the first precious metals company to achieve Trading Standards accreditation through their national 'Buy With Confidence' scheme. 

About the freepost 'cash for gold' business model

Whilst a free-post Cash4Gold might offer convenience to a customer, the business model is flawed from the perspective of offering 'best prices' to customers. They employ clever marketing tactics to convince you they're the cats whiskers.

The premise is simple: Post your unwanted gold using a free postal bag, and you'll be paid within a couple of days. It's a hassle-free process wrapped up in a slick marketing package that makes you believe it's the best way to sell gold.

The problem is those free-post bags (which cost around £10 a time) have to be funded from the value of the gold sent in. Unfortunately, many customers send in bags of worthless costume jewellery, meaning customers who send in real gold, have to cover the cost of the envelopes containing nothing of value. This ultimately means a much lower price per gram for the customer.

Furthermore, most free-post cash4gold companies rely on extensive advertising to generate the business, which is extremely expensive.

The result of offering free postal bags and expensive advertising means free-post Cash4Gold companies will typically offer just 40% to 60% of the gold's melt value. By contrast, a reputable specialist presious metals dealer will always offer well in excess of 90%.

Of course, these companies don't disclose their rates up-front because they're so low. Instead, they simply promise 'top prices' without providing any sort of clarity or substance.

Gold Calculators

A scrap gold calculator allows customers to input the weight and purity of their jewellery for an instant valuation. Unfortunately, some companies simply calculate the market rate (sometimes called the 'spot' price) for gold, which isn't the rate they'll ultimately pay.

They manage this by having a very carefully worded statement, often presented in small print:

Percentages we pay are based on volume

Whilst the perceived value, based on a calculator or published gold rate may seem high, the actual payout rate will come out significantly lower, often between just 40% to 60% of the expected amount.

Calling Journalists

Are you a journalist looking to run a story on the cash-for-gold industry and are looking to delve a little deeper into its fairness to consumers? Give our top-cat a call and let's rat-out the ferral strays.

Contact us and find out how we can help.