http://abcnews.go.com/Blotter/goldline-execs-charged-fraud/story?id=14857253 It looks like their day in court is coming up soon. Anyone want to give odds they beat the rap?:yes:
Based on that particular story, and I know nothing else about it, it seems like a stupid lawsuit put forth by a municipal city attorney. From what I can see, the only thing that happened was that someone was convinced to make a numismatic buy (and a bad one) over a bullion buy. I don't see what is illegal about that. Of course ABC news only parrots whatever the government tells them without question so I don't think I'd put much stock in this.
I see vague allegations and no specifics. It sounds a lot like people who had no idea what they were doing are upset because they can't buy today and sell tomorrow and make a big profit. We don't really know what anyone bought, how it was represented, what they paid for it, how long they held it, what the markets were doing at the times of the purchase and sale in short we know absolutely nothing except accusations have been made.
It will be tough for these people to win in court. I've heard their adds a thousand times if I've heard them once. I even listened to their podcasts for a couple years. I never bought from them but I can see what they were doing. They did advertise that coins would have a numismatic premium and that gold is typically a 5 to 10 year investment before you see a return. They've always been pretty clear about this. They also probably brought up the chance of govt. confiscation coming back and nudged people into buying the numismatic stuff more than the bullion. Which may be less likely to get confiscated. (But who knows? I don't know if I buy that it would come back for anything, that numismatics would be excluded, or that anybody would comply these days, but....thats another argument.) They talked about this occasionally. I agree that their numismatic stuff was over-priced, but what stopped all these "investors" from doing research? How was I able to know that you could get the same stuff on ebay for far cheaper? Even graded. I don't have any insider knowledge. I'm happy with Goldline. All they've done for me is provide news and entertaining podcasts. Also got two free 1964 Kennedy halves in slabs for free, just for calling the radio show a couple years back. They send a free info package with them and they don't bother you after that. Don't think they do it anymore. Still have the halves stored away with their friends.
I've heard rumblings about complaints with Goldline for a while now, but as far as I can tell they didn't do anything illegal. They just took advantage of people's ignorance and gullability of trusting Glenn Beck and others who put their name behind these guys. Still, I won't feel bad for them if they do end up losing the lawsuit. It's disheartening that so many people can't even look up the gold spot price to know whether or not they are getting ripped off.
So you're saying that my payday loan that I parlayed from the title loan that I funded through my reverse mortgage piggy-bank is maybe badly invested in a 200+% of spot purchase? I don't get it! Next thing you'll say is that I shouldn't be talking to these 'we buy ugle houses' folks. Sheesh!!!
The largest percentage loss on the part of "investors" would be IRA proof precious metals with box and papers at huge mark-ups; when dealers were trading these for under $2000 for the gold eagle proofs, they were offering them at $3000 or so. Nothing illegal there, probably not at $4000 a piece either except by state law, not federal law. Also the European older gold coins for their "numismatic" value, safe from confiscation by the government, don't you know, it could be 1933 all over again one of these days....Not likely. There are much bigger scams that get the takers not just poorer but in legal jeopardy. Those attract more interest from law enforcement than high priced product scams. If you want to avoid taxes on PMs, not that a good CPA could not help you reduce the tax bite to the minimum, I am sure there are many obvious ways, but not worth the aggravation and potential trouble.
