Abstract:
A method and system of allowing a consumer to exchange gold for monetary consideration includes the step of a consumer obtaining a submission kit from a retailer. The submission kit includes a package having a unique identifier thereon. The consumer places the gold item into the package and then sends it to a third party processor along with information about the consumer. The third party processes and evaluates the gold item and determines its monetary value. A settlement statement is then sent to the consumer advising them as to the monetary value and seeking instruction from the consumer as to how the consumer wishes to proceed with the exchange of the gold item they submitted in order to complete the transaction. If selected, a gift card is then sent to the consumer, which can be utilized at the retailer&#39;s store.

Description:
TECHNICAL FIELD 
       [0001]    The present invention relates generally to a method and system of exchanging gold for monetary consideration. More particularly, the present invention relates to a method and system of exchanging gold for monetary consideration, including a gift card for use at a particular retail location. 
       BACKGROUND INFORMATION 
       [0002]    Gold has always been a valuable commodity. This is particularly true today as the price of gold has escalated over the past couple of years. The demand for gold is very high. Consequently, companies have developed programs that allow individuals to exchange unwanted gold items or other items made from precious metals for cash. An example of such an existing company is one that offers its services at the domain name www.cash4gold.com. 
         [0003]    These programs typically work by having an individual or consumer contact the company to obtain a submission kit. Each kit has an identifier and provides instructions to the individual as to how to package and submit their gold items for exchange. In general, the individual puts the gold item into a return kit or package and then sends it to the company from whom they obtained the kit for valuation Once the kit is received by the company, it is opened and the customer tracking number is noted and recorded such that the gold item is associated with the submitter. Alternative programs do not utilize kits to facilitate sending in the gold item Instead, with these alternate programs, the consumer simply sends the gold item directly to the company without a kit. 
         [0004]    In accordance with these known programs, once the gold item is received, it is processed and weighed. The material is then tested to determine its precious metal content. Based on this information, a cash value is determined for the precious metal item sent in by the individual. Thereafter, the company advises the individual as to the monetary value they will receive if they elect to complete the transaction. If the individual elects to complete the transaction, the company will issue a check in the amount of the determined cash value to the individual who submitted the item. Alternatively, if instructions are provided by the individual, the company can directly deposit the cash into the individual&#39;s bank account or other location. If the individual elects not to complete the transaction, they can the item returned. 
         [0005]    Other cash for gold systems are known. While there may be some differences between the various known programs, they all operate in substantially the same fashion. Specifically, they generally involve a two party transaction, i.e. a transaction between an individual who has a gold item and the entity who receives the gold item from the individual, valuates the gold item, and then sends cash directly to the individual. These programs do not allow a consumer options as to how to receive payment for the gold item. Further, these types of programs require direct interaction between the individual and the entity. As is also known, when dealing with individuals and cash, complaints can frequently arise which can bring unwanted attention and publicity to a company. For example, complaints can occur over the way these companies have valuated the gold items they receive. These systems thus do not allow a company who deals with gold to interact with customers in an anonymous fashion. Additionally, these systems do not provide the consumers with options that can engender greater trust in the quality of the service they will receive. 
       SUMMARY OF THE INVENTION 
       [0006]    It is therefore an advantage of the present invention to provide an improved method and system of allowing a consumer to exchange gold for monetary consideration, which keeps the identity of the entity relatively anonymous. 
         [0007]    It is a further advantage of the present invention to provide a method and system of allowing a consumer to exchange gold for monetary consolidation, which involves multiple parties to complete the transaction. 
         [0008]    It is another advantage of the present invention to provide a method and system of allowing a consumer to exchange gold for monetary consideration, where the consideration is a gift card that can be utilized at a particular retailer&#39;s location. 
         [0009]    It is a related advantage of the present invention to provide a method and system of allowing a consumer to exchange gold for a gift card that can be utilized at a particular retailer&#39;s location and where the gift card has a monetary value thereon equal to the value of the gold item plus an additional amount equal to a predetermined percentage of the determined gold value. 
         [0010]    It is still another advantage of the present invention to provide a method and system of allowing a consumer to exchange gold for monetary consideration that allows a consumer to obtain a kit for the redemption of a gold item from a retailer&#39;s location. 
         [0011]    It is yet another advantage of the present invention to provide a method and system of allowing a consumer to exchange gold for monetary consideration that provides the consumers with options and flexibility as to how to complete the transaction. 
         [0012]    In accordance with the above and the other advantages of the present invention, a method and system of allowing a consumer to exchange gold for monetary consideration is provided. Initially, a consumer obtains a submission kit from a retailer. The submission kit includes a package having a unique identifier thereon. The consumer places the gold item into the package and sends it to a third party processor along with information about the consumer. The third party processor processes and evaluates the gold item and then determines its monetary value. A statement is then sent to the consumer advising as to the monetary value and seeking instruction from the consumer as to how they wish to complete the transaction. If selected by the consumer, they can receive a gift card, which can be utilized at the retailer&#39;s store. 
         [0013]    These and other features and advantages of this invention will become more apparent to those skilled in the art from the detailed description of a preferred embodiment. The drawings that accompany the detailed description are described below. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0014]      FIG. 1  is a block diagram of the parties involved in the method of exchanging gold for compensation in accordance with a preferred embodiment of the present invention; 
           [0015]      FIG. 2  is a block diagram of the process of exchanging gold for compensation in accordance with a preferred embodiment of the present invention; 
           [0016]      FIG. 3  is a schematic illustration of the process of exchanging gold for compensation in accordance with preferred embodiment of the present invention; and 
           [0017]      FIG. 4  is a schematic illustration of the process of exchanging gold for compensation in accordance with another preferred embodiment of the present invention. 
       
    
    
     DETAILED DESCRIPTION 
       [0018]    The present disclosure is directed to an improved system and method for redeeming gold for monetary consideration. While the present invention is described as intended for use in connection with the redemption or exchange of gold, it will be understood that the disclosed method and system can also be utilized for the redemption or exchange of other precious metals, such as silver, platinum, or the like. It will also be understood that the present invention may be utilized in connection with a variety of other valuable materials. Moreover, the method and system can take on a variety of different forms, some embodiments of which are discussed below. 
         [0019]    Referring now to  FIG. 1 , the system and method for redeeming gold for monetary consideration, generally referred to by reference number  10 , preferably a multiple party transaction. The transaction preferably involves at least three parties, namely a consumer  12 , a retailer  14 , and a manufacturer  16 . The consumer  12  is preferably an individual or other purchaser of goods. The retailer  14  is preferably a mass retailer that has multiple stores in different locations and also offers a variety of different goods in different areas. However, it will be understood that the retailer  14  can be any type of merchant of goods, as discussed in more detail below. Moreover, multiple retailers  14  can be part of the present invention at any given time. The manufacturer  16  can be any entity that has a use for the redeemed gold, such as a manufacturer of jewelry of other items that use gold. Alternatively, the manufacturer  16  can be an entity that processes and resells the gold to a manufacturer. 
         [0020]    While the present invention preferably envisions a method and system that includes three parties, it will also be understood that more or less parties may be utilized as required. For example, as also shown in  FIG. 1 , in accordance with another preferred embodiment, the method and system also includes a third party processor  18 , that is part of the transaction. As shown, the manufacturer  16  has a relationship or arrangement with the third party processor  18 . Under this arrangement, the gold items are sent by the consumer  12  directly to the processor  18  instead of to the manufacturer  16 . After the gold items are processed, as discussed in detail below, the processor  18  transfers the gold items to the manufacturer  16  in exchange for cash based on the value of the items. 
         [0021]    Referring now to  FIG. 2 , which illustrates the steps in the method or system of redeeming gold for monetary consideration  10  in accordance with the present invention. As shown, the manufacturer  16  provides the retailer  14  with submission or processing kits for distribution to consumers  12  at its stores or facilities, as generally indicated by reference number  20 . The kits are available for consumers  12  to take from the stores to facilitate submission of the gold items at the consumer&#39;s convenience. In a preferred embodiment, the manufacturer  16  has a business relationship with the retailer  14  such that the manufacturer  16  provides items, such as jewelry items, to the retailer  14  for resale in one or more of the retailer&#39;s facilities. 
         [0022]    The gold kits preferably include information about the retailer, as well an identifier that is unique to each kit. The kits may also be preaddressed and include prepaid postage for the convenience of the consumer  12 . One of the parties can have a relationship with a shipping company, such that they provide pre-printed labels for the kits, as will be understood by one of ordinary skill in the art. The kits are distributed by the retailer  14  to the consumers  12 . In addition to providing the kits, the manufacturer  16  also preferably provides marketing materials, including point of sale marketing materials for display at the retailer&#39;s facility, which promotes the gold redemption program, i.e. the disclosed method and system. The manufacturer  16  may also provide training for salespeople of the retailer  14  to educate them as to how to promote and implement the program. 
         [0023]    As generally indicated by reference number  22 , the consumers  12  can take the submission kits from the retailer&#39;s facility to another location, such as their home. Once at their home or other suitable location, the consumer  12  can place the gold in an envelope that is part of the kit and deliver it according to the instructions that are part of the kit. According to the next step, the consumer  12  sends the gold item as directed by the instructions of the kit, as indicated by reference number  22 . 
         [0024]    In accordance with one embodiment, the kit containing the gold item is sent to the third party processor  18 , as generally indicated by reference number  24 . With this embodiment, the manufacturer  16  has an arrangement with the third party processor  18  where the processor  18  will be the addressee on the kits and physically receive the kits for processing. This allows the manufacturer  16  to remain anonymous or invisible with respect to the consumer  12 . In an alternate embodiment, the kit containing the gold item is sent to the manufacturer  16  directly, as generally indicated by reference number  26 . This eliminates the need for the third party processor  18 . In either event, the guidelines for processing and evaluating the gold item are preferably set by the manufacturer  16 . 
         [0025]    Once the kit is received, the party that receives the kit, whether it be the manufacturer  16  or the processor  18 , will open and process the gold item, as generally indicated by reference number  26 . The steps of processing the gold item are briefly described below. Initially, in this embodiment, once the gold item is received by the processor  18 , it is received and logged into a computer system. In accordance with a preferred embodiment, the computer system is networked between the manufacturer  16  and the processor  18 . At this time, the computer system is programmed to automatically generate a notification for the consumer  12  that the gold item has been received. The notification is preferably sent to the consumer  12  by e-mail based on the information provided to the processor  18  in connection with the consumer&#39;s submission of the gold item with the kit. If the consumer  12  does not provide an e-mail address, the processor  18  will have to manually send the computer generated notification to the consumer  12 . The computer system allows the gold item to be identified and tracked based on the information about the consumer  12 . The computer system also allows the manufacturer  16  to track from what retailer  14  the consumer  12  obtained the kit, as discussed in more detail below. 
         [0026]    Once the gold item has been received and logged into the computer system, it is then processed, including being subjected to the following steps: imaging, testing, and weighing. Based on this information, the processor  18  determines a monetary value for the gold item, which is referred to as the settlement value. In another embodiment where the gold item is sent directly to the manufacturer  16 , it determines the settlement value for the gold item. 
         [0027]    Once a monetary settlement value has been determined by the processor  18 , this information is input into the computer system and associated with the information about the consumer  12 . Thereafter, the computer system generates a settlement statement to inform the consumer  12  of the settlement value of the gold item they submitted. Preferably, this statement is sent out automatically by the computer system to the e-mail provided by the consumer  12  when they submitted the gold item for evaluation. Again, if no e-mail is provided, the processor  18  will call or otherwise contact the consumer  12  and advise them of the content of the settlement statement or otherwise transmit the settlement statement to the consumer  12 . Alternatively, the responsibility for contacting the consumer  12  can be borne by the manufacturer  16 . 
         [0028]    The settlement statement provides an indication of the monetary settlement amount that the processor  18  is willing to provide to the consumer  12  in exchange for the gold item. The settlement statement also seeks direction from the consumer  12  as to how they would like to complete the transaction. Preferably, the settlement statement provides the consumer  12  with the following options to complete the transaction: 1) elect, within a selected period of time, i.e. thirty (30) days to have the gold item returned; 2) elect to receive cash for the gold item in the amount of the settlement value assigned to the gold item; or 3) elect to receive a gift card that can be used at the retailer  14  where the consumer  12  picked up the kit that contains the amount of the settlement value assigned to the gold item plus an additional amount. In accordance with a preferred embodiment, in order to entice people to select the gift card option, the processor  18  based on instructions from the manufacturer  16  adds additional predetermined monetary compensation to the gift card. Preferably, the manufacturer  16  increases the monetary compensation by an additional percentage, i.e. 10%. For example, if the gold item was valued by the processor  18  at $100.00 than if the consumer selected the gift card option, they would receive a gift card with $110.00 on it for use in one of the stores of the retailer  14  where the consumer  12  picked up the kit. It will be understood that a variety of other predetermined percentages could also be utilized. 
         [0029]    If the consumer  12  elects to have the gold item returned, they can have it returned at no cost and this will be the end of the transaction. Alternatively, if the consumer  12  elects the second option, they can have a check sent to them or can be paid by other suitable means such as a wire transfer or a by pay pal. If the consumer  12  elects to receive the gift card, the retailer  14  is contacted and provided with the information about the consumer  12  so that the retailer  14  can issue the gift card in the appropriate amount. Additionally, instead of a gift card, store credit could also be provided to the consumer  12 . 
         [0030]    Accordingly, in a preferred embodiment, based on the settlement value, the manufacturer  16  or the processor  18  settles with the individuals  12  depending upon the option selected thereby. In accordance with the preferred system and method, if the consumer  12  does not elect to have the gold item returned, the manufacturer  16  then buys the gold from the processor  18  at minimal markup. 
         [0031]    Preferably, on a monthly basis, the manufacturer  16  issues a summary to the retailer  14  that reflects the transactions that occurred that month for kits received from consumers  12  with gold items that originated at the retailer&#39;s store. The summary reflects a credit to the retailer  14  in an amount of the various settlement values issued to consumers  12 , as generally indicated by reference number  30 . For example, in one embodiment, the retailer  14  and the manufacturer  16  split the proceeds on a 50-50% basis. Thus, if the program generated $1000.00 in gold items for the manufacturer  16  and resulted in $1000.00 of monetary payments to consumers  12  then the month end statement would reflect a credit of $500.00 to the retailer  14 . obviously, the proceeds can be split in a variety of other percentages. If the consumer  12  selects the gift card option and the manufacturer  16  agrees to give the consumer  12  an increased amount above the settlement value, the manufacturer  16  preferably absorbs the cost of the increased percentage and this is reflected in the month end summary as an additional credit to the retailer  14 . Alternatively, the retailer  14  and the manufacturer  16  can utilize alternative credit arrangements 
         [0032]      FIG. 3  schematically illustrates the operation of a preferred embodiment involving multiple consumers. As shown, the retailer  12  distributes kits for submission of gold items to a plurality of consumers  14 . The number of consumers that receive kits is unlimited. The kits contain instructions that direct the consumers to submit the gold items to the processor  18 . 
         [0033]    It will be appreciated that not all consumers that obtain a kit from a retailer&#39;s facility will ultimately submit the kit with a gold item to the processor  18 . Thus, the retailer  14  preferably sends information to the processor  18  about the number of kits that the retailer distributes, as generally indicated by reference number  40 . The processor  18  can then determine based on the number of kits received what percentage of kits are submitted as compared to the number distributed. Additionally, after the gold items are received by the processor  18 , and analyzed, the processor  18  communicates with the retailer  14 , as generally indicated by reference number  42 . The information communicated includes that the transaction has been completed. If the consumer  12  elected to receive a cash payout as monetary settlement for the gold, then a credit is issued to the retailer  14  in the amount of the monetary settlement or some other amount as agreed upon between the processor  18  and the retailer  14 . Alternatively, if the consumer  12  elects to receive a gift card, this information is communicated to the retailer  14  so that they can issue the gift card to the consumer as well as the amount of the gift card to be issued to the consumer  12 . Again, this is reflected as a credit or cash payment to the retailer  14  on a monthly, quarterly or other basis. 
         [0034]      FIG. 4  illustrates another embodiment of the present invention. As shown, the processor  18  distributes kits to multiple retailers  14 . It will be appreciated that the retailers can be multiple stores of the same company or can be different entities altogether. Each retailer  14  distributes the kits to multiple consumers  12  in the same manner as discussed above. Also, the consumers  12  submit their gold items to processor  18  in the same manner as discussed above. The processor  18  can also track from which retailer  14  the kit was obtained to ensure that the proper retailer  14  is given the appropriate credit for the gold item submitted. 
         [0035]    While not shown specifically in  FIGS. 3 and 4 , it will be understood that the processor  18  can sell the gold items to another entity such as a manufacturer  16 , as discussed above. Alternatively, the retailer can utilize the processor&#39;s service such that it appears that the retailer  12  has no control over the program and that it is entirely run by a third party, i.e. a private label service. As still another option, the processor  18  can set up a website for the retailer such as www.processor/retailer.com. 
         [0036]    The foregoing invention has been described in accordance with the relevant legal standards, thus the description is exemplary rather than limiting in nature. Variations and modifications to the disclosed embodiment may become apparent to those skilled in the art and do come within the scope of the invention. Accordingly, the scope of legal protection afforded this invention can only be determined by studying the following claims.