Nice try, Utah legislature. You were on the path, but you didn't go all the way.
Anyway, they talked about different scams which were cropping up because of this law, and I had a brilliant idea (well, it was more of an innovation): Why not offer a cash for gold business which puts the funds on a debit card?
You may be asking yourself: Isn't that what other cash for gold operations do anyway? That is a good question, and the truth is, I don't know. I don't have any gold, so I've never checked on it. But that's not all that it would do.
The entire operation would consist of:
- Receiving the gold
- Determining the amount
- Loading the card
Okay, that's a little too simplified, but you get the idea.
When we receive the gold (it will either be via mail or face-to-face, like in a store), we check the ticker-tape to find the exact price of the gold at that second. There will be no negotiation in that aspect. When we check it, that's the price that you get. It is set in stone, so that is the amount that the customer receives.
Once the price has been set (and it will be printed out to the second as to what the price was so there will be no valid disputes, and it will be given to the customer), we will take a 30% fee. That fee will cover the costs of operations, and to ensure that we make a profit on the exchange (the commodities markets fluctuate wildly, and could drop up to 30% by the time the gold is sold, so there would be no profit for the company).
The customer's 70% will be loaded onto a prepaid debit card, where they can use the money however they wish.
We would hold onto the gold for up to 2 weeks (it may fluctuate, or even be set at a shorter amount of time, depending on the circumstances), so that if the customer wishes to come back and purchase the gold, they will have the option of doing so. The customer must inform us that they intend to do so within the time frame allocated, and we will hold onto it for a reasonable amount of time. If the customer does not pay for it within a reasonable amount of time, the gold will be sold to other parties.
This company would be somewhat of a hybrid pawn shop-financial institution. It would offer people top dollar for their gold while being profitable. The only obstacle to entering is having the initial funds to give to the customers. Once the ball gets rolling on this, the funds will be there and there shouldn't be any problems.