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Only Buy Bullion, or stay Away!
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I will try to be brief... At the end of 2008, I decided I needed to start investing in gold. Good choice as its gone up over 100% since then. Called Goldline after hearing their show on the local radio several times (Christian station no less).
I called and I was talked into buying Numismatic coins (collectors coins), as the sales person slyly said he recommends these to family, friends, etc...like I was getting some sweet deal. Bought $2,100 dollars worth of some Austrian gold coins (and this was after I promptly canceled my order for $3,000 of these coins after seeing the outrageous fees). Even after my complaint, I was still assured I was buying the good coins, as this is what is recommended to friends, family, and the salesperson also buys for himself. So against my better judgement I still spent 2k on these Austrian coins.
Fast forward 3 1/2 years later, gold is up over 100% during this time. I go to sell, my actual profit after selling back to Goldline: 100%? No. 80%? NO. 50%? no... Try 11%. Not including shipping charges, etc... Coins only. If I bought bullion like I wanted to, my profit would have been over 100% minus customary fees/small markups that any business will charge. However, they mark up these collectible coins 35% at purchase (spend $1,000, you get $650 worth of coins), BUT it actually takes a market increase of about 54% to just stay EVEN. Do the math. Not 35% as they may seem to suggest. Plus, they charge a 1% liquidation fee just in case you haven't been burned enough. So 54% is being conservative, more like 55% and who knows if I am missing something else. (side note: I called back to sell my gold coins (collector) on a good day for gold prices, but by the time my coins arrived and I got a phone call from them, gold had dropped 5% in price, another kick in the you know what)
I called back a few times to buy more coins after my initial purchase, and every time I asked for bullion of some kind, but I was told they weren't in stock, or they were out, or just kinda steered away. They push you towards these numismatic coins because they make Outrageous profits on you, while you get completely ripped off. So make sure you are adamant about bullion. Unless someone specifically calls and says they are a collector, they should direct all their consumers to bullion. They should be ashamed of themselves for directing any ordinary investor into collector's coins (numismatic). Buyer Beware.
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