February 4, 2009

There’s gold in them, thar TV ads

The high price of gold and a slow U.S. economy has helped make gold buyers much more visible in recent weeks, industry observers said.

The entire economy is crumbling and when that happens people below the line need cash, Stephen Schneider, head of marketing for Cash For Gold USA, told The Christian Science Monitor.

But rising profits in gold are only half the reason gold buyers are making a rash of television commercials lately, the newspaper reported Wednesday.

Big corporations pulling back on advertising are opening the door for gold buyers to buy television ad slots, said Mark Ratner, senior vice president media-buyer for Hawthorne Direct, which specializes in direct-response advertising.

As the price of gold escalates, television viewers finding commercial breaks crowded with pitchmen tempting them to cash in on gold jewelry lying about the house.

In this case, seller beware.

Many of these companies are not paying full price, Carols Sanchez, a commodity analyst at CPM Group said. It might seem like that to the customer who bought gold jewelry when gold was around $300 an ounce, but now that gold is around $900 an ounce they're really not getting that much of a bargain, he said.