There are dozens of Paydirt sellers stationed all over the world. They range from eBay sellers to large businesses that have really made a name for themselves. For those of you that don’t know, “Paydirt” is a bag of gold concentrates (black sands/blonde sands and fine gold) that have been salted with various amounts of gold. People buy Paydirt hoping to make a return on their investment. People also buy Paydirt to work on their panning skills. Through advertisement and empty promises, Paydirt sellers make it seem like buying Paydirt is a good investment. That the buyer will receive gold worth more than what they bought the Paydirt for. The truth is, buying Paydirt is a complete gamble built on the lottery system.
My passion for gold prospecting/mining started out with buying Paydirt. I thought to myself, “I can buy dirt and pan out real native gold while making a return on my investment?!” I was very intrigued and curious. After buying several hundred dollars of Paydirt, I noticed two things. Number one, my panning skills had improved significantly. And number two, the amount of money I spent on Paydirt was 1.5 to 2 times the price of gold I had accrued. I felt taken advantage of but that’s the price you pay when gambling, and buying Paydirt is no exception. I went into buying Paydirt very ignorant and naive, not at all realizing that I would rarely make a return on my investment.
Paydirt businesses have to make a profit in order to have a successful business. They have to create a business model that makes them money. A bag of Paydirt that guarantees a gram of gold usually costs anywhere between 60-70 dollars. That is roughly 20-30 dollars over the spot price of one gram of gold and that doesn’t even include shipping. Of course, there will be a couple bags that have more than a gram of gold but these bags are very few and far between.
Paydirt businesses are built on the same exact model as the lottery. They use intermittent reinforcement to hook their buyers. Intermittent reinforcement is where a person is not rewarded every time they do or buy something. The reward only occurs every once in a while. This means that Paydirt sellers only put extra gold in one out of several bags. This is a very successful business model because a profit is made the majority of the time and it hooks the buyer into purchasing more in hopes of striking it big. This is the main reason buying Paydirt is just like the lottery which in turn, makes it a terrible investment.
The best way to invest in placer gold is to buy it directly and at exact amounts. There are dozens of sellers (even eBay sellers) that sell or auction placer gold at or below spot price. I usually buy placer gold off eBay for 30-40 dollars per gram. These deals are all over the internet but the hard part is finding a deal that’s legit. Due diligence is key to finding reputable sellers. Buying placer gold directly from a seller allows you to get what you pay for and not leave anything to chance.
There are a few reputable Paydirt sellers out there that tend to get you your money’s worth, more so than others. Two that come to mind are Goldstrike Adventures and Gold Adventures LLC. Both are very consistent and have exceptional customer service. Both are located here in Colorado (my home state).
Paydirt can be fun to pan out with family and is also a good way to get a taste of gold mining but, it’s not the best way to invest in gold. In the long run, you’re not going to make a return on your investment and will most likely end up in the hole. Don’t leave anything to chance and buy your gold at or below spot price from a reputable seller.
4 thoughts on “The Truth About Paydirt”
Very disappointed. One little piece that was probably put in. Terrible.
Thank you for your input Avery. What little piece are you referring to?
Thank you for your advice
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I like the gamble of panning paydirt. I find it as a emotional release from the stress of life. I like the lower priced unsecured stuff. I have gotten as low as 20% and has high as 100 % return.