Haven’t Financial Analyst and Financial Planners always preached “diversification”? Diversification is supposed to be a means to protect your assets. If one segment of your investment portfolio is performing poorly, diversifying hedges you. Isn’t this precisely what institutions such as AIG were doing? Some say, that created a scenario for company that was “too big to fail”. Well, we still like the idea of diversification as a means to protect your investments.
We recently featured an article about a gold mining company that had multiple divisions, in theory, designed to protect shareholders in the event one division fails. In keeping with that theme, we have discovered another company, related to gold, that intrigues us.
Fox News recently covered the explosion of the Internet sales of gold and other jewelry via online mediums. The most popular and most heavily m
arketed is by far Cash4Gold, but, they are a privately held corporation. Because of their aggressive marketing and changes in economic conditions, Cash4Gold has seen a tremendous response to the services they offer. According to Fox News, Cash4Gold receives 3000 – 5000 packages a DAY from people seeking to cash in their gold for some green.
Since Cash4Gold is a private company, we decided to go out and see if we could find a similar company that would allow investors to participate in the significant revenue produced by companies such as Cash4Gold. We set out to find a start up company, providing you with a ground floor opportunity, that keeping with the theme of diversification, would allow potential investors to benefit from the explosion of cashing in your gold and other valuable gems and metals for some green.
We found such a company. Precious Metals Exchange Group, which is currently traded under the ticker symbol PRMX.
Now you`re probably wondering what makes PRMX different compared to Cash4Gold or any other company in this industry?
Cash4Gold’s business model is very simple. You send in your gold, they send you back a check. You have twelve days from the date the check was written to decide if you want to accept their offer by cashing the check or returning the check if you decline their offer. Ok, now think about that. From an accounting perspective, Cash4Gold has now incurred the expense associated with the cost of writing a check and the postage associated with mailing that check to you. Do the math, if they are receiving 3 – 5 thousand packages a day, the postage alone is going to add up pretty quickly. Not to mention, the capital requirements that would have to be kept on hand in order to ensure there are sufficient funds available at any given time to actually pay out for the checks they’ve issued.
Precious Metals Exchange Group (PRMX) has unveiled www.CashOutMyGold.com, the first known interactive web-based Gold buying service online! The web-based buying service branded CashOutMyGold will act as a real-time conduit between PRMX and the seller who wants to sell unwanted jewelry.
PRMX doesn’t have the expense associated with writing a check and then waiting 12 days to see if the seller has agreed to accept their offer. Instead, once PRMX receives your kit they send you an email with a username and password to login into their user-friendly website w
here it shows you the status of your kit and lets you decide, with the click of a button, whether to accept or decline the company’s offer for your jewelry. Once a customer clicks to accept an offer the gold automatically becomes PRMX`s property. Instead of sending a check to the seller, PRMX provides you with the option of using their “Instant Cash” electronic payment.
Ok, now, you are probably asking, so where is the diversification I mentioned earlier.
PRMX recently launched its own internal in-house marketing division named VolumeContact(TM). The VolumeContact(TM) division of the Company is comprised of state-of-the-art commercial grade voice broadcasting servers which currently have the ability to broadcast to over 3 million households and cell phones daily with a 30 second audio commercial at a cost of less than one cent per message. PRMX is also currently in the process of activating email broadcasting and SMS text messaging technologies to facilitate additional low cost marketing services which it will make available to other companies seeking to market their products; thereby, creating an additional revenue stream!
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