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Tuesday, 16 October 2012

Groupon - Sometimes Cheap, Sometimes Expensive (Inflated Gold Price)

This morning I received the special in the image above from Groupon indicating that they are selling Gold at a discount of up to 70%. Very interested in this deal I checked the price of the deal against the market related gold price, as I usually do, and found that this offer was grossly misrepresented.

To read more about why this offer is not worth it please click on the link below:

I visited http://goldprice.org/ and found that gold is currently selling at R490.89 per gram (see image below):

The Groupon special was for:
  • R6 500 per 10 grams
  • R35 000 per 50 grams
  • R65 000 per 100 grams
(See image below)

If we use the current rate of R490.89 per gram and add maybe an estimated 20% charge for any additional services and costs we get (the 20% charge is a thumb suck and could probably be a lot less):
  • R5 890 per 10 grams (10% cheaper than Groupon)
  • R29 453 per 50 grams (16% cheaper than Groupon)
  • R58 906 per 100 grams (10% cheaper than Groupon)

So essentially you are paying a premium of more than 10% to buy a Groupon deal that indicated a discount of up to 70% on Gold.

A Kruger Rand sells for about R16 220 (link to price) and weighs in at 1OZ (28.35grams). Equating to R572.13 per gram. I would then rather buy Kruger Rands than this special on Groupon.

It is unfortunate that a company such as Groupon who has lots of loyal followers that has trust in offers they present would offer such a grossly misrepresented deal.

My advice to my viewers, please investigate all specials and offerings with market related searches on the web before purchasing. It will take you 10 minutes but it might save you lots of money.


  1. Well researched friend

  2. Is it not possible to email groupon and advice them of what is happening and get them to remove the advert and refund the two clients that have bought so far? I find it their duty as a company to do that according to your research above.

    Would be angry if I purchased that deal and found this out after i paid for it and got it. Not small amounts of money...

  3. Maybe email sales@jdcorporate.co.za with this?
    They are the company that listed the sale

  4. These bars alaso have liquidity issues- not as easy to find a buyer/seller. So beware- rather stick to kruger coins from Investgold/FNB

  5. The company that listed must be aware of the current gold trading price and liquidity issues. DO they actually believe they will help and remove it of groupon? They are a business at the end of the day...

  6. Funny enough on the email that was sent out as shown in the first picture it states a "discount of up to 70%" but on the groupon website it shows no indication of the discounted value or percentage. They must be covering themselves.