Friday, July 23, 2010

Goldline Faces More Criticism, This Time From Consumer Reports

Attracted by all the fuss, Consumer Reports has taken a look at Goldline's prices. The surveyor responsible found Goldline's price for regular bullion coins was in line with other firms, but the markups for semi-numismatic coins was well above that of others'.
The reporter also questioned some of the sales claims Goldline associates made during phone consultations. Perrotta said Goldline told callers they should invest as much as 20 percent of their portfolio in gold. "Most financial advisors say five to ten percent of your portfolio in gold is a good inflation hedge," Perrota said. "Is it good advice? I don't think it's good advice."

The report examines Goldline's assertion that customers should consider buying collectable coins to protect themselves from having the government confiscate their gold. That pitch appears to be a central feature of the company's effort to persuade customers to buy coins, despite a mark-up that can run as high as 35 percent.

Company sales associates told the Consumer Reports caller that after the Great Depression, the U.S. government seized peoples' private stashes of gold, and warn that history could repeat itself. In fact, the report notes, the U.S. government paid market price, and took that unusual step to prevent people from hoarding bullion while American currency was on the gold standard, the Consumer Reports article says. An expert quoted in the report called confiscation today "a non issue."

"Are you worried about the government confiscating your coins? I'm not," Perrotta told ABC News.

Of course, Goldline isn't unique in this area. To anyone who believe they are, I suggest taking some time and watching a shopping channel when the numismatics show comes on.

1 comment:

  1. Bullion Exchanges is a trusted Bullion Shop established in New York City's Diamond District.

    They have a wide inventory of items like, precious metals that range from the gold and silver to the prestigious platinum and palladium.

    They are offering a wide range of products appealing to 1st time investors and for established investors.

    ReplyDelete