A victory for those of us who sell only bullion gold and silver coins at low mark ups!
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I have been warning investors about the gold dealers out there who charge 30% or more commission for European gold coins and other rare coins while giving the impression to investors that these coins are non-confiscatable. While there are many gold dealers who will still be able to separate you from your hard earned money by still using the word confiscate in soliciting business, Goldline International can no longer do so. I feel I personally was instrumental in making the case against Goldline International as I was interviewed by the Santa Monica City Attorney’s office a few times in that regard.
In Chapter 8 of my book, Buy Gold and Silver Safely, I exposed how gold dealers rip off their clients by making up stories about confiscation and scaring clients (pushing them) into buying the more expensive coins that they make much more profit by selling. In fact, I was interviewed by the New York Times Peter Goodman for an article on the subject, and Anthony Weiner’s office wanted me to come testify in front of Congress about what I knew. In fact, his office told me that “everyone needs to read your book.” Weiner’s office sent my book off to the Energy and Commerce Department and they came to the conclusion that everyone shouldn’t read my book. Why did they come to that conclusion? Because I criticize the heck out of Congress too, for getting us into the financial mess that came with the real estate bubble and banking crisis. This crisis hasn’t ended and Congress didn’t want to be criticized. So Weiner’s office gave my name to the Santa Monica city attorney’s office. The New York Times never ran the story either. Sorry I ruined it for you Peter Goodman. I do wear this refusal from Congress to allow the truth to be told as a feather in my cap!
The following is an exchange from one of my clients who had dealt with Goldline International prior to talking to us. I have received permission to use his words and first name.
Tim: By the way, it might seem insignificant to most, but I can’t tell you how many times goldline used the word “confiscate” in the sales pitch and even though she finally recognized I felt this was important and accepted to some extent my objection to the term, as that conversation has rolled around in my head the last week, it has made me think a lot less of them. They are conveniently using a piece of history to “up-sell” but they are distorting history which does indeed call into question their integrity.
(After the settlement was reached with the Santa Monica City Attorney he wrote the following)
Tim: For kicks I went to Goldline’s link and they of course are glad the criminal charges were dropped as part of their settlement. They turn on the propaganda and highlight their long history, their transparency, and the like. Being fined for what they’ve done is nothing to celebrate, though, and while I think they are large enough to get past it quickly, anyone doing their homework will more easily see this stain on their record.
Is Goldline International Still Charging High Commission?
Of course they are! If a car dealership on one side of the street sold cars for 30% more than the dealership on the other side of the street, it’s the buyer who didn’t do their homework that gets stuck paying more. Investors need to do their homework! It’s as simple as that. They need to know what they are buying and why. When it comes to gold and silver, buyers should only be acquiring the type of metal that is lowest cost to spot like the American Gold Eagles and Silver Eagles, or gold and silver bars, as well as the 90% silver bags, all of which we here at Buy Gold and Silver Safely charge just a 1% commission.
Goldline International did over $500 million in sales in 2010 and you can bet that much of that was in the selling of European coins at very high mark-ups of 30% or more by using this tactic of claiming these coins can’t be confiscated. They no longer can use the word “confiscation” in their sales pitch any longer, and they are being watched by the Santa Monica City Attorney’s office for the next 5 years to make sure they don’t. A $4.5 million restitution is a slap on the wrist for Goldline Internatoinal, and it isn’t stopping Goldline from still selling the European Gold Coins at high markups or Glenn Beck and Sean Hannity lending their name to them for credibility. Here is a recent ad I received from Glenn Beck’s news outlet called “The Blaze” who’s official sponsor is none other than Goldline International.
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Here’s the latest ad on Sean Hannity’s website:
What this is telling you is that Glenn Beck and Sean Hannity recommend a company that was told to give $4.5 million in restitution to clients and who still, to this day, is pushing the higher priced European coins. Shame on them.
Do your homework folks. It’s as simple as that. There is a reason these gold dealers can afford all those commercials on the various TV news and business shows, and it’s not in YOUR best interest.
We here at Buy Gold and Silver Safely offer the lowest prices guaranteed. But more importantly, we don’t steer you to higher priced coins that only make the gold dealer rich.
Why pay more? Because Glenn Beck or Sean Hannity recommends them? Respect your hard earned money and put your business where your expense to acquire precious metals will be the least. Put your business with Buy Gold and Silver Safely.
With the current pullback in gold and silver prices, now is the perfect time to start dollar cost averaging into a position. Since our own government knows nothing about austerity, let alone cutting a budget “defecit,” you can bank on the higher prices in the years to come.
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About Doug EberhardtDoug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Disclosure:
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
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