Goldline Scandal

I have no problem with that. In my defense I will state that my books actually withstood the scrutiny of an IRS audit and were found faultless. In fact, the IRS agent apologized for the amount of time it would take for IRS to send me a check. I never was much for the more "creative bookeeping" approach, but you can define your gross profits and net profits any way you wish. I will stick with what has done well by me thus far. lol

 

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OOPS. Should not have written that and do not know how to delete it. My apologies. It was a truly stupid and childish thing to do. I am sorry.

 

It is just the same as Star Bucks. If I want to buy coffee, I'll go elsewhere.
Not the best analogy, but it makes sense.
A company can charge whatever they want for an item, if the customer pays the price due to savvy business men, and they find out it is less than what they paid for, OH WELL! They chose to go to that company.

 

I think the point is being missed here. The alleged improper conduct is that Goldline "lied to and misled" consumers and that Goldline customers "received something different than what they ordered." That is what the city attorney said. That is called "fraud" in most states and it violates consumer protection statutes in many other states. Charging a high price, selling something for more than it is worth, bait and switch, may or may not be illegal, but lying to sell a product is illegal just about every time. The people interviewed focused on the high price, but whether they are the people whose complaints are being investigated was not stated.

 

But that is what the headlines of the left leaning press are saying. One I read specifically even said "received something different than what they ordered" and then quoted a couple saying what you heard as proof.

 

Actually, I think that most people read the headlines and ignore the story. Then they brag about how much they know.

 

Nothing wrong with a premium for a numismatic coin in my opinion.

 

The smart money must love Goldline's pain. I ignore it. The company is just being used as an example in my opinion. Price manipulation is harder to keep down when so many common folk are stocking up.

I see all this as an opportunity and wake up call to buy, buy, and buy more gold. - That is my opinion and I am sticking to it!

 

I agree with your opinion to buy more gold, BUT I must say that there is a smart and dumb way to do it.
And we are talking about the dumb ones in this thread!

The dumb ones are the only thing keeping a company like Goldline in business.

 

Isn’t Goldline just engaging in normal sales? If a person goes to a new car dealer to purchase a vehicle with a make and model in mind, a nice salesperson directs the purchaser to a much higher priced automobile with all the extras. It may cost many thousands of dollars more. The purchaser is convinced by the nice sales person to buy the vehicle and drives it home. After a couple of days the buyer realizes it’s more car than they wanted and tries to take it back to the dealer and get their money back. The dealer says the car is now only worth two thirds of what they paid for it. The buyer says “I only drove it 20 miles”, the dealer reply’s “You should have known the depreciation of new vehicles before you bought it”.
[FONT=&quot]I’ve heard people complain about car salesman but I never heard of a government probe into car sales technique. [/FONT]

 

Yes, there was (several?) a government probe into car sales technique. Funny, though, I did not see much change. Did you?

The difference between this and your car salesmen is that this is political. Mediamatters and Glenn Beck are not exactly friends. To try not to stop this thread, I will let you do your own research from here.

 

I know a fellow who was dealing with Monex or Monaco and entered into a leveraged commodities contract. My discount brokerage told me that this fellow from Ohio may have recourse because the seller of the commodities contract, which BTW wiped the Ohio "investor" out financially to the tune of hundreds of thousands of dollars, probably acted illegally in setting an investment idiot up in a gambling-style contract probably knowing that his wife, mother and daughters were also at risk. A lawyer would know what laws might govern such a transaction and whether it is really "fraud", "constructive fraud", investment fraud, etc..

I spoke with a Goldline representative recently, I got their mailing with legal contracts part of their sales promotions. They quoted me over $500 each for old Sovereigns, and over $3000 for proof gold eagles (CDN price is under $2000 on 1 oz. proof eagles). They said they will pay considerably more when they buy back their coins from customers, provided a number of conditions are met. They recommend customers holding their offerings for at least five or so years to allow fat profits to fully manifest. They actually quoted reasonable prices for bullion US gold eagles to me--less than $75 over spot. Peter Schiff, the senate candidate from Connecticut commented on the Goldline issue by saying that he would try and open up a bullion trading operation as part of his Euro-Pacific investment company with very tight spreads.

I would like to see Apmex or other large US gold bullion dealer run TV ads. But then they would probably have to raise their prices.

I doubt they are engaging in fraud, legally defined.

 

I think thats the best solution, period. They sell the hype, which is what is driving the fear and the prices up. If they make enough people believe gold is a stable place to store wealth in any economy or that world currencies are failing, then they make more money, not the schmuck who bought into it all. Scare tactics are what will make the believers go broke soon. Personally, I can't wait. Somebody'll have to snag all the gold at prices that reflect reality.
Guy~

 

When I see the bullish hype of precious metals here and on other forums, I wonder if the posters realize they are basically pushing the same agenda~ to keep prices up. There are posts of doom, gloom, back to almost prehistoric times. There are threads of buy,buy,buy to the general reader when the poster has no reason other than hope it increases that side of the equation. To the general reader, ask how many of them really have gone through a 1980 type of boom and then bust of Precious metals? One should learn from history, if not, they will repeat it. I know that most of the members that actually participated or at least kept up with it in the 80s, are much more conservative.

I know many just think they are doing a favor to the newbies, as they have personal strong feelings on the future action of PM, that is understandable, but keep in mind that they may actually buy at a peak, and see it fall $50 the next day and keep going. Just my old man ( I don't have 20 more years to wait for it to go back up )observation.

Jim

 

I think most people who have ridden the ups and downs in the PMs for a while, have no definite expectation of where gold, silver and platinum will be in the future. There are no sure things. I bought an exploration gold mining stock that was up 50% in one day this week, but fell back after that. Newbies should read Kitco and other sites to get their best information on gold as an investment. Apmex has very tight buy/sell spreads this week as do others.

Goldline is the subject of an article at Huffington Post today on the Weiner investigation. This may be redundant, but it looks like Goldline may have to face a Congressional panel:

http://www.huffingtonpost.com/2010/07/22/anthony-weiner-demands-an_n_655725.html

 

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I don't really watch alot of tv... so I don't know what they advertise but what I was meaning is if you say come buy gold and show AGE's and then try to talk to into someting else and possibly even say it's just as good isn't that what a bait and switch is? or did the definition for that change?

keep in mind if people just got screwed over by their own stupidity then whatever...but if it's how it sounds like to what I was hearing then I think there is some shoddy business practices going on and there needs to be something done about that... a 2010 swiss is not the same as a 2010 AGE especially in value...
Alex
Alex

 

That's the key phrase for me. The bullish hype for metals is presently confined to forums like these. Just this morning, CNBC ran a segment interviewing an "expert" who explained in great detail why gold is going to go straight down to at least $1000. There is no general concensus [yet] that gold is going up. But I totally agree that the trick will be to know when to get out. I hope I can do this. It isn't easy.