There are a number of different dental alloys depending on the use. Dental gold can range from being over 60% gold to well below 40% based on what the restoration was. For example, metal from Porcelain-Fused Metal crowns or bridge gold is going to be much lower concentration than a gold inlay. There isn't just one dental gold alloy.
You may be right but You may be right and I know it varies but I have always heard dental gold is generally 12 to 16 K. Most buyers that I work with can generally tell just from the color. I myself have 16 full gold crowns and I can see a difference in the gold content from one to another, (even though the same dentist put them all in and used the same vendor to make the crowns). Many of my crowns appear to be 18 K though as they are butter yellow and will reflect the sun about 50 miles away. I'm fairly certain no matter the content they would choose the 12 K to buy from and hope for the 16 to sell but that is only natural. All these gold buyers setting up shop at hotels and on TV will rip you a new one you can be certain of that - for them there is no downside - they know that they can price it that low and even if 3 out of 10 object they'll still get the other 7 so - "what are you going to do"? I would not do business with them but they always know some will.
It's all based on the application. Different teeth have different forces and different restorations have to do different jobs. The alloy selected is designed to be the best for that particular restoration. There are many factors to consider when choosing an alloy for a particular dental restoration. It has to do with not only strength, but also malleability and adaption to the tooth. Sometimes, a higher gold content is better because it makes the crown more easily to burnish and adapt the margin of the crown to the prepped tooth (the margin is the most likely place to have cavities form so a good sealed margin is key). However, if it's a visible tooth and aesthetics are needed (and thus the crown needs a porcelain face), the crown will be lower in gold content because of the temperatures needed to bond the porcelain to it. If those crowns had more gold in them...when they were heated to bind the porcelain the metal structure would melt. This is why the crowns are different color. Also, some of those might be the same alloy but have oxidized if they have gotten older and changed color.
This is going to be a minority opinion but if someone is stupid enough to use these guys then that isn't cash4gold's problem if they pay less than others might pay. They're in it for the money (duh). Darwinism in it's purest form, I say.