You've seen the commercials for those companies that promise top dollar for gold, like Cash4Gold, right? What about gold parties? You know, get-togethers where everyone brings their old jewelry and someone is there to purchase the gold immediately. You go in with old gold jewelry and leave with cold, hard cash. It doesn't get any better, does it? Perhaps Teresa Tambunting was headed to a gold party and wanted to be well equipped.
According to the story, 50-year-old Tambunting "siphoned off" roughly $12 million worth of gold from Jacmel Jewelry in New York City. The company realized the gold was missing after an inventory audit was conducted in January. When the audit kicked off an investigation, Tambunting decided to return to her employer with roughly 66 pounds of gold; another 448 pounds was later recovered from her residence.
Apparently, Tambunting snuck the jewelry out of the jewelry store in the lining of her pocketbook over a six-year period. That's a lot of money stolen over a long period of time. Reminds me of Tim Robbins tunneling his way out of Shawshank Prison.
I'm not saying that the reason she was stealing the gold was to go to a gold party, or to take advantage of a company that will pay "top dollar" for your gold jewelry, but with all of the company's out there promising cash for gold, she could have easily been caught up in the hype. If she had taken her stolen gold to one of the gold shops, Tambunting would have quickly learned that they do not pay "top dollar" for the gold. In fact, they barely pay "top pennies" for the gold. Good old Pops Fightmaster (gleaning years of knowledge from his managerial experience) once told me that no company out there is going to lose itself money, which is the apparent premise behind the gold exchange companies.
These companies want the general public to believe that they are taking a loss in order to give you the best price possible. Please do not take this the wrong way if you have taken any jewelry to one of these places, but they operate on the old W.C. Fields adage that there is a sucker born every minute. Remember that these people pay pennies on the ounce to you and then turn and sell the gold at the spot gold price, netting a nice profit in the process. The real question is, how are these people (gold parties and gold-exchange companies) different from the real crooks?
Take the first steps to building your portfolio.View Course »