NEW YORK (Commodity Online) : The U.S. company Cash4Gold takes advantage of cash-strapped people by purchasing their gold items at a fraction of their worth, consumer advocates claim.

The New York Post reported Wednesday U.S. Rep. Anthony Weiner, D-N.Y., is among those accusing the Florida company of ripping off people by purchasing gold items for as little as 11 percent of their actual worth.

"They are playing people in tough times," Werner alleges of Cash4Gold, which advertises its services on late-night television.

Gold-buying companies such as Cash4Gold operate by having people mail in their gold items so they can be appraised. The companies then make an offer.

Cheques sent by Cash4Gold have 12-day deadlines from the time the cheque is written, meaning customers have a short window to reject the offer if they want their items back.

The Post said Weiner has proposed a federal law that would give customers more time to refuse price offers.

Cash4Gold responding to allegations said that it pays out as much as 60 percent more than its competitors in the mail-in gold buying industry. It quoted a study from Which?. This study pitted Cash4Gold against three of its most well-known competitors and found that the company offered higher prices than other companies that buy broken or unwanted jewellery based strictly upon their scrap value.

"Cash4Gold is pleased to be paying up to 60% more than our competitors, and we believe this helps explain why we are the leaders of the global consumer mail-in gold industry we created," said Cash4Gold CEO Jeff Aronson. "We are very clear with consumers that our prices are based upon the melted value of the precious metal, and we even go so far as to say on our own website that they might get higher prices from pawn shops or jewellery stores which can resell some items." Aronson adds: "We are a great option for customers seeking a fast, secure, simple, convenient and totally discreet."

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Cash4Gold accepts gold, silver and platinum items and pays customers based upon the quality and quantity of precious metal contained in an item, also known as melt value. Melt value is based solely upon the actual precious metals contained in an item and, unlike retail or resale values, does not account for decorative, artistic or sentimental value.

The Which? testers sent "three pieces of brand new gold jewellery," which would be unusual for people to post off for scrap. Cash4Gold and other mail-in companies offered a melt value, while local jewellers and pawn shops made offers based upon resale and/or retail value. Comparing scrap gold companies offering melt value to retail and resale operations which can resell jewellery is like comparing apples to oranges.

Cash4Gold is devoted to providing top-notch customer service. Its customers have a 12 day period to decide whether to accept the offer or request their items back. If they choose the latter, Cash4Gold returns their items immediately, free of charge and insured at no cost to the customer, unlike some of its competitors. Another differentiator between Cash4Gold and other mail-in companies is that for security reasons its packaging is totally nondescript and includes neither the company name nor the word "gold."

The company, which boasts a base of operations in Sheffield, has taken a leading role in working with lawmakers and law enforcement to increase the transparency of its industry. In the United States, Cash4Gold worked closely to create and implement the first law to regulate mail-in gold buying and has expressed its desire to see similar legislation enacted in the United Kingdom.

Since launching in the UK last year, Cash4Gold has also opened offices in Germany, Spain, the Netherlands and Canada, Cash4Gold said in a press release. (EUNewsNet.com and OfficialWire, PRNewswire)

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