Warning from BBB - Texas companies
Bob-tx
Austin-Based Firms Using Ads to Sell Coins May Be Peddling 'Fool's Gold'
Austin, TX - March 17, 2011 - Consumers nationwide should be on the alert
for advertisements from two Texas-based companies that are using newspapers
to sell gold bullion coins "completely free of dealer mark-up," Better
Business Bureau (BBB) warns. The companies appear to be using the ads to
entice consumers to buy more expensive "collector coins" at prices
significantly higher than they could be bought elsewhere.
The companies are United States Rare Coin & Bullion Reserve and United
States Coin and Gold Reserve, both with addresses in the same office
building in Austin, Texas. Colt Verret is a former sales manager for United
States Rare Coin & Bullion Reserve and is the current president of United
States Coin and Gold Reserve, which also uses the name United States Gold
Coin Exchange, LP.
United States Rare Coin & Bullion Reserve took out a full-page ad in the St.
Louis Post-Dispatch in January and The Cincinnati Enquirer in February.
United States Coin and Gold Reserve recently took out full-page ads in
several additional newspapers, including the Post-Dispatch, the Belleville,
Ill., News-Democrat and The Boston Globe. All of the ads have striking
similarities including sections where the ad copy is identical.
Carrie A. Hurt, BBB president and CEO, says the advertisements invite
consumers to call toll-free phone numbers to speak with company salesmen,
called "gold advisors."
"These seem to be typical bait-and-switch ads where the salespeople use the
initial offer to convince callers to buy higher grade, so-called collector
coins, at highly inflated prices," Hurt explains. "There also is concern
that these salesmen may be targeting senior citizens, some with little or no
knowledge of the gold market."
BBB is also concerned with the content of the companies' advertising, which
pictures the U.S. Capitol building and which could lead consumers to believe
the companies have an affiliation with the U.S. government.
An investigator with BBB called the toll-free number listed on the
Belleville advertisement and spoke with a salesman who identified himself as
a senior investment advisor and senior gold advisor with United States Coin
and Gold Reserve. He said that people are "fed up" with low interest rates
offered by banks, and retirees are "looking for a better way to save money."
He said he works largely with retirees.
While the salesmen said he could sell some of the advertised coins, he
recommended that between 85 and 90 percent of a gold investment portfolio be
in what he called "congressional proof, extremely high-grade, collectible
coins that tend to appreciate far better than bullion does." He said the
coins contain ¼ ounce of gold and could be purchased at a cost of $639 each,
or $12,780 for a tray of 20 coins.
The price he quoted for the coins is markedly higher than the price they
could be bought elsewhere, according to research conducted by an
investigator with BBB. A longtime Texas-based coin dealer, Danny Hall, said
his business would sell the same high-grade coins for approximately $398
each, or around $7,860 for a tray of 20 coins. A check of prices on the
online site eBay shows the coins selling for between $335 and $420 each.
Hall called the price being charged by the Austin coin company "inflated" at
$639. He further emphasized these coins are not considered to be
particularly collectible, but simply a purchase of gold.
BBB is currently working with United States Rare Coin & Bullion Reserve to
confirm substantiation of the claims in their advertisements.
Consumer complaints received by BBB allege that they purchased coins from
United States Rare Coin & Bullion Reserve, but the purchase amount was far
more than the amount the coins were later appraised. The company generally
responds by offering consumers the option to return the coins for a refund.
Consumers have filed more than 40 complaints against United States Rare Coin
& Bullion Reserve in the past 36 months.
Click here to view the current BBB Business Review on United States Rare
Coin & Bullion Reserve and here to view the current BBB Business Review on
United States Coin and Gold Reserve.
BBB offers the following tips to consumers looking to buy coins as
investments:
· Research Gold-Buying Businesses in Advance.
Before buying anything, make sure you know the name of the company, its
address and, preferably, the company's top officials. Check out the company's
BBB Business Review at www.bbb.org for additional insight.
· Do Not Make An Immediate Decision.
Some sales representatives may push you to buy during their initial
presentation, but do not buy anything until you have had an opportunity to
compare their prices with prices offered by reputable coin dealers in your
area, or through Internet auctions.
· Compare Prices Carefully.
When you compare prices, make sure you are comparing identical items. A
vintage $5 gold coin, for instance, is usually worth more than a newer $5
gold coin. The value of coins minted the same year likely will vary
depending on the condition.
Beanie
"Bob-tx" <No Spam no contact> wrote in message
news:4d90b700$0$4010$bbae...@news.suddenlink.net...
>
> Austin-Based Firms Using Ads to Sell Coins May Be Peddling 'Fool's Gold'
>
I say we flood their 800 number with calls, keep them talking for as long as
possible and then not order anything!
They advertised in my local paper too.
Beanie
"Beanie" <b...@an.ie> wrote in message news:imqkpp$hn$1...@speranza.aioe.org...
They have a web site touting their "Congressional" gold:
http://www.usmoneyreserve.com
Bremick
"Beanie" <b...@an.ie> wrote in message news:imql78$1g7$1...@speranza.aioe.org...
All the media gold sellers seem to have a bunch of fuzziness in their ads
lately. Makes you wonder why so many people are so eager to sell something
so valuable. I like the latest one that offers you a price of 1% over "our
cost". And the one that touts proof gold issues as especially good
investments. Anyone with the $$ and enough common sense to do a little
research before including gold in his portfolio need not worry. The rest
deserve those Texas companies.
Beanie
>Anyone with the $$ and enough common sense to do a little research before
>including gold in his portfolio need not worry. The rest deserve those Texas
>companies.
I wouldn't say that they "deserve" to be ripped off.
These characters tend to prey on the elderly.
OTOH - a fool and his money...
Bremick
"Beanie" <b...@an.ie> wrote in message news:imqvgm$pue$1...@speranza.aioe.org...
They deserve what they get. If they are happy with what they're buying for
the price, so be it. If they were ripped off, too bad. I won't be the one
to break the bad news. Life can be cruel. Maybe they can keep their
overpriced gold long enough to one day sell it for more than they paid for
it. I'm sure they will think they made a wise move.
Beanie
"Bremick" <rem...@cox.net> wrote in message news:imr84n$crg$1...@dont-email.me...
So why don't we just have anarchy?
Every man for himself, right?
Bremick
"Beanie" <b...@an.ie> wrote in message news:imsjhm$729$1...@speranza.aioe.org...
Anarchy is a bit over the top. Every man isn't for himself now? Is
somebody guiding you through life?
Beanie
"Bremick" <rem...@cox.net> wrote in message news:imsl34$340$1...@dont-email.me...
I never said anything about "guiding".
We have a system of law & order, a social safety net and many other systems to
protect and help people out along life's way.
You're just a sourpuss today!
Bremick
"Beanie" <b...@an.ie> wrote in message news:imsoj5$jnc$1...@speranza.aioe.org...
If I'm a sourpuss, it's probably because I just finished working on my
taxes. There are things we can expect help and protection with, and there
are things we're expected to do for ourselves. Deciding whether a
potential gold purchase is wise or not falls into the latter category, IMO.
More and more we are being protected from ourselves by our govt. They know
what's best for everyone of course. Second- tier TV commercials are full
of questionable schemes and outright ripoffs and it's up to the
viewer-consumer to check things out before jumping. Aunt Nanny hasn't
intruded quite that far yet.