CORPORATE AMERICA, TAKING ADVANTAGE OF THE GOLD RUSH

In the last five years the price of gold has tripled and many American companies and citizens are taking advantage of the situation in order to put more cash into their pockets.


Just five years ago, in 2005 gold went for $420 dollars per ounce. Now, gold is going for $1245.00 per ounce and still climbing. Many corporations nationwide are taking notice and are trying to take advantage of the market. One company in specific is Community Loans of America (CLA). This Georgia based company operates more than 900 stores nationwide, offering loans for consumers on their car titles. Now they look into adding a new product, by buying gold. According to CLA executive Yaseen Malnik, “This is a good time to take advantage of the gold rush”. He explains, “Because the gold market is at such high value, many people are selling their unwanted jewelry. We at CLA are in the process of adding gold purchasing as a secondary product to many of our store front locations nationwide.” Other Companies that specialize in Check Cashing stores, Western Union, Payday and Title loans are getting into the action by adding gold buying to their stores. Companies that already have existing overhead expenses are adding another gold buying at virtually no expense. “Same roof, same overhead,” explains Malnik.

As the economy was good five years ago and more people were making more money, therefore people were spending more money. Gold was one luxury that many people were able to buy. Fortunately for those people who purchased gold from five years ago and earlier, their investments can now pay even more than what they paid for it.

Corporate America looks at the gold market as being lucrative and expanding. Malnik explains “our customers are those who tend to be cash-and credit-constrained and who seek value from gold items they find no longer necessary”. Those customers are looking for fast cash and convenience for the sale of their jewelry items. Pawn is viewed as less preferable by these customers because they seek greater returns on their transactions. There is also another option but Malnik doesn’t believe that mailing your gold is the best option, “Sale-by-Mail gold transactions lack the transaction speed preferred by customers, and our presence in the community lends greater confidence in the fairness of the transaction.”

Although Malnik is sure the business will be a success, he knows how important marketing is and he already has a plan of how to do it. He will use the existing relationships with the customer base established by his payday and title loan operations by messaging in the form of e-mail to his current and former title and payday loan customers. He believes this should attract significant customer traffic to his locations and accelerate business. Flyers announcing new store-fronts and describing favorable transaction rates will be distributed to homes, relevant businesses, and vehicles within surrounding neighborhoods.

Corporations like CLA look to profit from the high gold market and consumers are looking to sell their gold for great returns, however it’s uncertain at what point the bubble will burst.