Thanks to this article from TechCrunch, it is now apparent that those with poor credit or who might be homeless can now walk into a local 7-Eleven store and finish their transaction to buy gold.
Here is the pitch.
Does anyone believe the lady pictured in the ad above is the type of customer that doesn’t have a bank account and went to 7-Eleven to pay for gold?
For me this falls into the category of “just because you can, doesn’t mean you should.”
The author of the TechCrunch article had the same reaction I did when I first saw this.
Why would someone who doesn’t qualify for a credit or debit card and/or has limited finances want to spend a ton of money on gold?
The transaction fees add up as well.
With BuyGoldWithCash.com the price of a 1 gram bar with shipping was $91.48 plus the transaction cost for the PayNearMe.com transaction fee. The total will be around $95 for the homeless approach.
I found a provider online, that was selling the very same gram of gold for $76.72, including shipping. So the unbanked or no credit/debit card premium using BuyGoldWithCash.com is about $20. That’s a steep premium to charge people that can probably least afford to pay it.
I’ll let Leena Rao from TechCrunch sum this one up.
It’s too early to tell how BuyGoldWithCash will do, but there is something unsettling about the way that the company is bringing in revenue. I guess it may be able to eek out sales if it can convince enough poor people to part with cash for gold bars. There’s just something about that model that just doesn’t sit well with me.