Last time we saw Congressman Anthony Weiner, he was attempting to discuss the IRS’ role in the enforcement of healthcare with spin-hater Bill O’Reilly. While that particular encounter was quite fun (especially Weiner’s huffing and O’Reilly’s eye-rolling) the video of the Congressman’s recent appearance on Fox Business News is quite good.
But what we’d really like to see him have a conversation with Barry Minkow about how that Barry thinks the Congressman’s report on Goldline International is unmitigated bullshit:
Friend of GC, Tracy Coenen participated in the Minkow’s investigation and she presents the findings over at Fraud Files Blog. Here’s a sample:
• Allegation: Weiner criticizes Goldline because of complaints on the website Ripoff Report lodged by consumers who say Goldline representatives improperly hold themselves out as investment advisors.
• What Weiner didn’t tell you: Ripoff Report says (in response to the consumer complaints) that you can feel completely confident doing business with Goldline. Weiner gave us only half of the story in his report.
Allegation: Goldline grossly overcharges for its products
What Weiner didn’t tell you: Our sampling of coins listed in the Weiner report showed that Goldline’s prices were very comparable to those of six competitors. He also forgot to mention that companies are free to set whatever prices they like for their products.
Allegation: Goldline says they’ll buy back your gold and silver, but doesn’t “guarantee” that
What Weiner didn’t tell you: It is against the law for Goldline to offer a buyback guarantee. If they offered such a guarantee, they would be in violation of securities laws because their salespeople are not licensed broker dealers.
Regardless of how you feel about Glenn Beck, gold coins, or Anthony Weiner’s Fox News-esque ability for interrupting, it kinda sorta sounds like the Congressman’s investigators don’t know a non-fraud when they see one. Besides, we’ll take the word of a convicted-felon-turned-fraud-buster over any report that comes out of Congress. Especially in an election year.
A message left with Congressman Weiner’s spokesperson was not immediately returned.
Goldline International: An In-Depth Look at Congressman Weiner’s Allegations, And How He Got It Wrong [FDI]
Barry Minkow debunks the Glenn Beck and Goldline International fraud connection [Fraud Files Blog]
Weiner Takes on Goldline and Fox Business — At The Same Time [Weiner.house.gov]
I'm a staunch conservative (tea partier) and disagree with Congressman Weiner in almost every respect but I'm sorry – the prices charged by Goldline are not comparable to the market. For instance, you could buy French Gold Angels (.1876 troy ounce of gold) in May from Goldline at $409, or directly from a group like Regal Gold Coin or Amergold for $265 to $299.
How is that comparable?
It's not illegal – but if they don't discuss their coin spread with you verbally it borders on gross manipulation.
Now what's interesting is not just the front end spread which for Goldline is 5 to 20% on the bullion coins like American Eagles, and 35% (think about that!) on numismatic coins like French Angels – but that the market spread on the back end of those coins, that I could find on French angels – as a comparison – is currently 18%. That is, what they will buy them back from you for.
So here's Goldline's pitch in a nutshell – they tell you they have always purchased back gold they sell and will buy back the gold at 1% to market (that is to say, without any additional back end spread.) BUT, and this is vital – as is pointed out above – that policy is not guaranteed, nor can it be by law, and it is subject to change at any time. They sell you on this buyback – they talk about it in glowing terms, they say they've always done it and intend to do it. They tell you that other coin dealers may 'not be in business' or you may call and 'find that their numbers are disconnnected' when you're attempting to sell your coins (say at a price top for gold in a few years…)
By casting doubt on other dealers, and pitching their non-guaranteed buyback almost like an insurance policy ('why would you want to monkey around on the back end to sell your gold') – Goldline feels justified in selling it's exorbitant, huge, immense 35% front end.
By the way, in the above article you mention that the front end spread is comparable to 6 other competitors – I've named competitors above that had no where NEAR the spread on their French Angels as Goldline – can you please name the competitors that are comparable – and name the apples to apples prices?
You can vote for a new congressional candidat Robert Turner instead of A.Weiner in November 2010.