Once a client understands that our financial system and our currency are rigged. Everything from currency to stocks to bonds and even real estate is artificially manipulated through corporate subsidies, intervention, bailouts, and interest rates. True diversification requires a position in physical gold and/or silver. There are many dealers selling gold out there. So how do you choose the right one? This decision is based not only on the transaction itself but also on the relationship going forward.
Some dealers offer gimmicks like “free gold or silver.” We have seen a number of these offers and find that the “free gold or silver” is priced into what the clients are paying for their investment. We have seen clients get $5,000 in free silver from a certain dealer, only to find out that they may have paid close to 100% over the market price for a $100,000 investment.
Other dealers advertise based on being the cheapest. The slogan is more or less
come to us because we have the lowest price. When it comes to a significant portion of our nest egg someone claiming to be the cheapest isn’t always the best option either. Let’s consider reliability, response time from my dealer, availability of my dealer, service with IRAs and RMDs, liquidation services, valuation services, and the quality and availability of their precious metal products. Not all “low price dealers” are toxic, but online buying solely based on price has brought up some red flags and concerns.
Online customer information has been hacked
In July of 2020 customers of one of the largest internet-based retailers were notified that there had been a data security breach that had been going on for five months. A malicious code was entered onto their website that captured customer names, addresses, and customer payment information. This type of cyber-attack is known as MageCart. The company in question overall seems to be very legitimate, but online buying in any industry could affect your personal information and privacy.
In a volatile market, slim margins can cause disaster
The Tulving Company had been selling precious metals online since 1995. Documents show that Tulving and his company accepted the customers’ payments but failed to deliver some of the merchandise. Instead, they diverted the customers’ payments to fulfill other customers’ orders, pay company debts, and return the money to previous customers who did not receive their merchandise. Coin dealers are required to deliver coins within 28 calendar days of receiving full payment.
The lesson here is to be wary of buying coins online because of a so-called great price. If no-fee products sound too good to be true, they probably are. Tulving filed for bankruptcy in 2014, and millions of dollars of coins were never received by their customers. If due diligence was done, this fact had been talked about online for many months before the final shutdown.
Bullion Direct Inc another “low-price” dealer declared bankruptcy in 2015
Bullion Direct was a “low price” online bullion dealer from 1999 to 2015. The company had a real-time system for customers to place orders 24/7 called Nucleo. Looking at their website in 2014 the price of spot gold was $1,307.10 and Gold Eagles were being offered for sale at $1,356. The spread on that Gold Eagle is entirely too tight to account for availability at that price and the volatility in the markets.
It is unreasonable to acquire a physical asset where the company selling it makes hardly any money. Customers who get a fair deal have no problem understanding the risks. The price is important, but should not be the only reason you do business with someone.
Getting a fair deal, prompt delivery, and great service is more important than getting the lowest price. It costs money to get personal assistance for all of your questions and requests. The market is a living breathing entity. Swings in the market occur daily and some wiggle room has to be in the price. The dealer and the customer take on some of that risk.
Have you ever searched online for an item? You tell me based on what follows you around if it is digitally tracked. I searched recently for a refrigerator. I can’t tell you how many refrigerator ads and pop-ups I am still receiving. Anyone looking at my online tendencies knows my refrigerator is on the brink. Do you want the eyes on you to know you are buying gold? Do you really want to leave a paper trail when you transfer assets into gold online? Financial privacy and freedom are very important folks especially since we have so little of it left.
Clients also need to consider what full service means. Sometimes clients need to sell back coins and bullion. Some clients need assistance rolling over an old 401(k) or transferring an IRA into a Gold IRA. Midas Gold Group does not charge a fee for any of these additional services no matter how long you are a client. Yes, it costs some money to have the privilege of having a genuine tangible asset versus paper gold or a mutual fund. This cost can be reasonable and a move in gold or silver over the next few years can easily overcome this. The message is loud and clear. Do your due diligence and do business with a reputable gold dealer that you can talk to where there are no complaints about the delivery of coins or bad customer service reviews. Do business with a gold dealer that will be around for years to come to service all of your family’s needs.