A congressional investigation in to the precious metal dealer, Goldline, is underway. The only question is why? Is it as most suspect? A result of Glenn Becks endorsement of Goldline, wrongdoing, or as US Congressman Weiner claims, “Goldline rips off consumers, uses misleading and possibly illegal sales tactics, and deliberately manipulates public fears of an impending government takeover – this is a trifecta of terrible business practices,”
If it’s the latter, the majority of the precious metal dealers out there should be mentioned. Goldline does not seem to be doing a whole lot different, as most charge similar commissions and fees, and mention economic uncertainty in their presentation. When we heard about this we felt inclined to contact Michael Rothman again for his opinion on the matter.
“Their affiliation with Glenn Beck, without a doubt. There is no other reason for Goldline to be the main focus. My opinion would be different if congress were looking in to the precious metal industry as a whole.”
“Industry standard commissions range from 10% to 30%, and Goldline falls in that range for their bullion. We offer coins, just not collectible coins, so I can not give a valid statement concerning their coin prices. The coins we deal with are in the triple 9 (.9999) category that go up and down with the bullion market.”
“Our job (precious metal dealers) is not easy; we work in a twenty four hour market, which makes for a long work day to arrive at our recommendations. We do get a small break on the weekend, but my family has always told me that it’s not enough. So from that standpoint the commission is justified, but not good business in my opinion. A commission that high makes it harder for clients to get into profits. We are a high end metals boutique that deals with higher net worth individuals, which is why we are able to get away with our low commissions at Lloyds West. As far as their sales practices of coaxing bullion buyers in to coins, I know nothing about that. But I do know that coins are more expensive due to the minting cost of the process.”
How this plays out for the precious metal market should benefit investors. This is merely a spotlight being shown on the cost and fees associated with investing in precious metal coins and bullion. No one wants to look like the bad guy; so once again, we say it is time to invest in precious metals. Glenn Beck has stated
“They are going to nudge the gold industry out of business,” during his Wednesday morning radio show “They are going to regulate it and regulate it and regulate it, until you won’t be able to buy gold anymore. This is what I’m telling you – they can’t have people buying gold! They need to own all the gold! They’re going to nudge us. Mark my words.”
But don’t forget, Beck loudly claims he is a capitalist, and may be getting a sweet deal on his purchases of gold from Goldline. Who would’ve thought that Glenn Beck’s actions would have effected the metal market in such a way.