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Where Are All the Gold Buyers Going?

Big buy from a repeat clientIf you’ve visited or driven past any storefront gold buyers lately, you may have noticed a few more closed signs on windows, a few less sign twirlers, or a few more “call to make an appointment” signs that lead you to unanswered telephone numbers. What’s going on?

Since January 2012, the Denver metro area has been inundated with no less than 50 gold buying storefronts from four different out-of-state chains. These chains aren’t members of the Better Business Bureau, nor do they bother to join any local Chambers of Commerce. They are “get rich quick” operations that are not invested in the local community and do not donate to any local worthy charities.

These out-of-state chains were doomed to fail from their inception. 2012 saw the supply of scrap gold from individuals rapidly start to dwindle, compared with the supplies of 2008–2011, which were record breaking and robust. These high scrap gold levels are what prompted the “get rich quick” gold buying storefronts to leap into the Denver market, so when they started going down, it was bound to have an impact.

Because these storefront gold buyers have such high business overhead, they pay very low prices for both scrap gold jewelry and gold coins, often offering $160- $240 BELOW SPOT PRICES for one ounce gold coins and ingots! No wonder they don’t want to join the BBB! But they really don’t have a choice. Because these businesses are so expensive to run, if they don’t pay unreasonably low prices for gold, silver, and platinum they can’t make enough money to stay in business.

The market has responded by staying away from these operations, and storefront gold buyers are now closing numerous locations as they experience enormous financial losses.  Expect further closings between now and January 2014 as the latest incarnation of gold buyers continue to suffer heavy losses.

Contrast them to The Gold Hunter. We have an A rating on the Better Business Bureau and participate in our local community through our membership with and frequent gold and silver jewelry donations to the Metro North Chamber of Commerce.  The Gold Hunter also donates to local schools, churches, and youth sporting leagues. We love to be involved in our local community and contribute whenever we have the opportunity.

The best news is that The Gold Hunter is still thriving after six years in the gold buying business. We keep our overhead low, so we can continue paying generously for our clients’ scrap gold, silver, and platinum, as well as top dollar for coins and bullion.

Please call us and experience The Gold Hunter difference for yourself!

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