Coin Investment Club [was make money fast]

I'm glad I learned this tidbit of info. I have a feeling many people (not including the aforementioned individuals) have dug themselves into holes so to speak by offering coin investment advice.

 

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http://www.fool.com/InvestmentClub/StartingAClub.htm

 

Is someone going to include the rest of us in this conversation?

ruben@mrbrklyn.com <<=== In case you've forgotten

Ruben

 

On August 17,1990 the FTC issued a press release regarding PCGS. “FTC CHARGES COIN CERTIFICATION CO. MISREPRESENTS OBJECTIVITY OF ITS COIN GRADING SERVICES; COMPANY AGREES TO SETTLEMENT” The FTC charged that “PCGS misled consumers by falsely claiming that it provides consistent, objective grading of coins and that investment in PCGS-certified rare coins eliminates all the risk associated with the grading of coins.” PCGS/David Hall was charged and placed on probation for 2 years. Civil Action No. 90-1982, www.ftc.gov, New York Times, 8/17/90 p.D2, The Wall Street Journal, 8/17/90, pp.C1,C12.

 

When did Coin Talk become an investment seminar site?

I come here to talk about COINS!

 

Whether you like it or not, I personally detest the idea of investment and it should be kept seperate from this forum. One lawsuit and boom - this forum shuts down immediately. If you really wish to create one, you can always purchase a domain and server plus you will be the proud owner of the site and club. This cointalk forum is one of the best coin forum sites and I will be very mad if it just goes off thanks to a lawsuit.

And please, this forum was under the threat of a lawsuit very recently. I believe it's up to Peter's call to decide what to do.

 

I agree with gxseries, "No Thanks." The first thing which comes to mind is the Ohio Coin Scandal. Dave Ramsey says the solution to not having money is to get a job.

 

As much as I hate to say it, I think Ruben is right [OUCH! That hurts.]. I don't think there is any problem with the idea as long as nobody takes any kind of fee for providing invesment advice and service.

 

where's Peter? He will do the smart thing and shut this thread down when he says it. Why the hell would he want a source for illegal scandals anywhere on his site?

 

What are you talking about?

Nothing illegal is being discussed, just a bunch of collectors who are talking.
I did not see anything illegal.
And since when is it NG to talk?

If they, the participants, knowingly go into an 'arrangement' between themselves, it is their option.
As for talking about coins:
When I see a thread Saci $'s or Presidential $'s I just hit it and hit refresh. That way it doesn't show up as a new posting, and I can ignore it.
[Sorry, guys, but I am not of fan of those collections.]
However, I don't expect them to move elsewhere to discuss their collections.

In the same way, if someone doesn't want to read this, then pass on it.
No one is forcing you to read.

 

I thought they wanted to actually put money together and buy things?

 

So, if they did it is their business.

Not mine.

 

I have belonged to two investment clubs. One owned stocks the other real estate. Both clubs were registered with the state and were required to form a corporation by submitting "articles of incorporation", which in effect are the rules by which the organization will be operated. Also, such clubs must obtain a Federal Tax I.D. This is the means by which the club reports earnings (and losses), each member receives an annual K-1 that they must include with their personal tax forms. I don't understand how an investment club in a subjective investment such as coins would work. The value of stocks are transparent to all members via the brokrage account statements that each member receives. In real estate the club assets are based on appraisal and/or tax value. The numismatic value of coins in an account would be difficult to establish as they are only worth what someone is willing to pay at a given moment. The only apparent quantifiable value would be bullion. Also, who has possession of the club's assets and what are the responsibilities (liabilities)?

Just my thoughts on this. I'd suggest you do further research first.

 

I don't know the legalities of pooling money to invest in coins. It doesn't seem any more illegal than pooling money to pay for gas in a carpool. However, I don't see much of a return potential, at least for me. Not to mention, yes, there will be taxes if that investment grows, and I'm already paying tier three taxes and don't wish to add on more. Perhaps I'll wait and see how, or if, it all works out first.
Guy~

 

I've already had my accountant do this twice before. There is no need for any of those things you mention. Just to say it, there is never any need to ever ever ever form a cooperation for any purpose. There are legal advantages in some cases if you do. You don't need a tax id to invest or to invest in something or to join in a partnership in order to invest in something, or just to buy something. You don't need a tax id to conduct business. You don't need brokerage accounts, your not a brokerage. Your not anything other than a group of people pulling your money to buy something.

Thanks for your insight, but factually my accountant and lawyer BOTH said your wrong and in fact the lawyer made some comment about how your lawyers' profitability might be attached to that advise.

Mind you, if a lot of money gets involved then more formal legal status will protect people. But my friends in my synagogues have enjoyed being in investment clubs for decades and nobody ever formed a cooperation, although they needed to register a partnership as a business in order to have a name to put on stock certificates. The good thing about coins is that you don't need to register them. You just need a safe.


Ruben

 

The only scandal here is the paranoid delusions to believe that talking about forming an group to spread the risk of buying some coins would be colored a "scam" which would need moderation. It does remind me why any serious discussion of a real business needs to be as secret as possible since there is always someone who wants to screw it up and enjoy watching others fail.

The only other scandal I ever see the constant, "Make a zillion dollars in Silver" which passes for conversation here at times.

Ruben

 

I just didn't want peter to feel obliged to be a part of this and take any blame if it fails is all, I have was interested in this since you mentioned it, it can be a great idea, I just don't want any moderators to have blame if failure occurs is all, jeeze.....adults.....who needs um

 

club

is there any coin club within new york city area?. like queens?. long island?. thanks.

 

The problem I can see arising from this is, get ten people together, investing differing amounts of money...nobody's going to agree on what to invest in, and if someone makes the decision for them and it fails, who's going to garner the responsibility? If it works, how do you pay out?

I'm not saying it can't work great. I'm just curious as to how much actual thought has been invested before you start asking people, mostly starngers, to invest hard-earned cash. It may be for fun and all, but for $1000 I can take my family to Disneyland for a few days and have some fun.

If the real motive is to invest and buy coins we normally wouldn't otherwise because of cost, instead of calling it an investment club, why not just pool the money and buy from an auction where everyone might get to have a coin in hand. That would be a real return and wouldn't require lawyers and accountants and talk of lawsuits and such. I'm a collector. I want coins, not a chance of a $50 gain in a year's time.
GUy~