Payday Loan Stores Buying & Selling Gold

By | Oct 28, 2008

As payday loan stores continue to search for additional revenue streams by adding products and services to expand their product offerings the buying and selling of gold, silver and platinum is becoming increasingly popular.

In an effort to not only increase profits but additionally to offer consumers a variety of services that will appeal to them payday loan companies are beginning to buy and sell scrap jewelry consisting of gold, silver and platinum.

Some payday loan operators are reporting $5000 to $10,000 and more in increased monthly net profits as a result of this service.

With the economy presenting severe challenges for consumers in the U.S.A, Canada, Mexico and more this new service makes a great deal of sense. Startup costs are very minimal. Training consists of a 30 minute Webinar and marketing materials in both English and Spanish are available at no cost.

For example, Cashland Financial Services began their new program, paying cash for people’s gold.
The program is a first for a company that typically deals with payday loans and check cashing services.

Cashland Supervisor Jill Cvetanovich said their Wapakoneta location was among the first Cashland stores to start the program; just in time for the holiday season.
“If a person brings us an old necklace they’ve had and it’s broken and you want extra cash for Christmas, bring it in,” Cvetanovich said.

Cvetanovich said the gold will be tested to determine its karat weight.
She said Cashland will purchase the gold based on the daily market value for the karat weight.

Since the program began last week in select stores, Cvetanovich said the company has already bought $13,000 in gold. The Wapakoneta branch has made several sales, but Cvetanovich said anticipates more as word of the program spreads.

“There’s been quite a bit of inquiries made and we’ve had a few pieces sold in the store,” Cvetanovich said. “Obviously we’d like to have a lot more business, but we’ve done pretty well so far.”
Cvetanovich said nearly all of the 140 Cashlands across Ohio, Indiana, Michigan and Kentucky are to offer the program by the end of the month.

Interestingly, the buying and selling of gold, silver and platinum can be added to virtually any business seeking new revenue streams and new services for their clients.

For additional information go to Gold into Loot.com

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9 Comments so far
  1. Payday Loan Advocate October 28, 2008 10:02 am

    Ohio’s governor, Ted Strickland, is in staunch opposition to the payday loan and cash advance industries, but has recently started fighting to pass a gambling bill. The bill would add Keno to Ohio’s lottery games. The bill actually took effect in August 2008, but is being challenged on the November 4 ballot. Strickland states that the bill is a part of a noble effort to raise money for the Ohio public schools. The bill also proposes an amendment to the state constitution that would ultimately authorize the construction of a $600 million casino near Dayton. Strickland is also an ordained Methodist minister, and has been taking criticism from all different kinds of people, including member criticisms from people from all walks of life, including his fellow Methodists. Strickland offers a utilitarian argument: although he opposes the expansion of gaming, this bill will be best for the common good of our children. It’s obvious to see how desperate Strickland is to improve Ohio’s economy. By supporting this bill, Governor Strickland is more or less facilitating financial irresponsibility. Strickland thinks it’s okay for his citizens to gamble away their rent or mortgage payments for the sake of their children’s futures, but disapproves if people need help from a payday lender when they’re short on cash? Can you say “hypocrite?”

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  2. Online pawn shop October 28, 2008 12:55 pm

    Selling gold in this economy is an excellent wy to get some extra cash in your pocket.

  3. Payday Loans October 28, 2008 3:00 pm

    If the government caps the interest rates on payday lenders, it will cost the jobs of a lot of people, and several more won’t be able to take out small loans for emergenies.

  4. Jared October 28, 2008 3:29 pm

    I wonder what the spread is between what these people will pay and what they can sell the gold for?

  5. payday loans October 28, 2008 5:03 pm

    I have never heard of a Payday Loan company buying and selling Gold and silver.

  6. admin October 28, 2008 5:08 pm

    Jared,

    You can compute the “spread” with this calculator at Gold into Loot.com

    For example, for 14Kt. with gold at $737/oz if you sold 100 pennyweight (DWT) = $2075. Your “buy rate” for 14Kt = $9.00/DWT. Thus your cost is $900 and you sell it for $2075 less 5% and $25 “melt fee” and less $30 shipping fee = $1100 net profit to you!

    We know of locations purchasing 4000 DWT and more from consumers each month!

  7. Payday loans October 28, 2008 8:24 pm

    That’s an interesting concept. I think payday loan companies should stick to what they do best. Offer great customer service and a money product to help people out of sudden binds.

  8. Katelin Jeanneret November 13, 2010 5:06 pm

    @Astropuff I don’t agree your mindset. You might want to take that style of message somewhere else.

  9. Rejinold December 17, 2010 9:06 am

    My family began buying scrap gold in their car title loan and payday loan stores about 12 months ago. VERY profitable!

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