Buyer Beware

[rk911]

This article attributed to The Washington Post appeared in my local Sunday paper. I'm not a coin collector or a buyer of metals for investing. We've all seen the ads for "rare coins" and buying gold and silver as a hedge against inflation. I've always had serious doubts about that...how to store and safeguard it, how to liquidate it and what I'm supposed to do with it after the zombie apocalypse.

What caught my eye is the statement blaming the network who aired the ads for losses suffered by a client. Wondering if you'll agree.

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https://edition.pagesuite.com/popovers/dynamic_article_popover.aspx?artguid=61185f03-623b-4d58-8790-aee4f35768e9&appcode=DUPAGE&eguid=05ce0087-d1e4-4cc0-bd61-346b0eaf7f7e&pnum=67#

 

[erkevin]

I am a numismatist and a gold/silver guy. Those ads, for gold and silver, as investments are the worst. they sell products way above retail and are easily purchased elsewhere (at a significantly lower price). Recently, on a Reddit forum, someone posted a 4-coin gold set and asked about its value. I did a little research and replied that it was worth about $4500 or something. The poster was not happy. His grandfather had purchased it from US Money Reserve for $18,000. US Money Reserve got an F from the BBB. Do I blame Fox? No, but those ads do prey upon a certain demographic that watch Fox a lot.

 

[Mr. Tightwad]

I don't buy gold so I won't get ripped off.

 

[jazz4cash]

I had read the article previously in the Post. I did not realize how badly overpriced the products being marketed in this way are compared to other dealers. To be clear I think it is a victim in the article blaming the network, not the article itself. I continue to be amazed how many people fall for outright fraud and scams but also legitimate schemes like this that are legal.

 

[W2R]

I don't buy gold so I won't get ripped off.

Me, either. I remember back in the 1970's when buying gold was "a thing", and several of our friends lost their life savings on gold purchases. Sure, maybe some people make money that way but I know nothing about precious metals and it would be stupid for somebody like me to buy gold.

 

[ownyourfuture]

The thread title pretty much says it all.

Not sure how someone like the guy in this case, wouldn’t know (be aware) of the 33% commission ?
If he could prove info relating to the commission amount (33%) wasn't made available to him (even in the fine print) he would certainly have a case.

If that was the case, I say he has every right to go after Lear Capital, but I don't believe that gives him the right to go after Fox.
Besides, it appears he was fully aware of the fee/commission.

In a statement, Lear Capital spokesperson Tracy Williams defended the company’s operations, saying most of Lear’s customers would have made a profit if they had sold at a recent market high.
Williams said that White, the New York retiree, had acknowledged the company’s fee in a recorded call.

He made a foolish investment, yet it sounds like at the very least, he was made whole.

Last year, Lear settled New York’s 2021 lawsuit involving White without admitting wrongdoing.

 

[youbet]

Me, either. I remember back in the 1970's when buying gold was "a thing", and several of our friends lost their life savings on gold purchases. Sure, maybe some people make money that way but I know nothing about precious metals and it would be stupid for somebody like me to buy gold.

How did they lose their life savings buying gold? I've never found precious metals to be a good investment (that I could work out anyway), but unless there was some scheme unrelated to the price of gold involved, it seems unlikely an investor could lose everything.

 

[CardsFan]

This article attributed to The Washington Post appeared in my local Sunday paper. I'm not a coin collector or a buyer of metals for investing. We've all seen the ads for "rare coins" and buying gold and silver as a hedge against inflation. I've always had serious doubts about that...how to store and safeguard it, how to liquidate it and what I'm supposed to do with it after the zombie apocalypse.

What caught my eye is the statement blaming the network who aired the ads for losses suffered by a client. Wondering if you'll agree.

---------
https://edition.pagesuite.com/popovers/dynamic_article_popover.aspx?artguid=61185f03-623b-4d58-8790-aee4f35768e9&appcode=DUPAGE&eguid=05ce0087-d1e4-4cc0-bd61-346b0eaf7f7e&pnum=67#

The article appears to really be a hit piece on the networks cited in the article.

Sorry, I have seen the same commercials on local stations for years, not associated with the cited networks.

Anyway, caveat emptor is always the name of the game when you play in an area you are not familiar with.

BTW, can I interest you in a life insurance plan that is only $9.95 per month, and guaranteed to never increase?

 

[Koolau]

Two things:



1. Buying "premium" coins is a fools errand unless YOU are the one prepared to rip someone off (IOW if you are a dealer of premium coins.) "Pedestrian buyers" must trust their dealer and that's a bad idea. DON'T buy premium coins (Coins valued for more than their precious metals content.)


2. Who is to say that 33% is TOO much? Those guys advertise like the MY PILLOW guy. That costs a lot of money. Of course, they want to get their add dollars back plus profit. SO, based on that inescapable truth, go back to 1. Don't buy premium coins.

 

[Koolau]

The article appears to really be a hit piece on the networks cited in the article.

Sorry, I have seen the same commercials on local stations for years, not associated with the cited networks.

Anyway, caveat emptor is always the name of the game when you play in an area you are not familiar with.

BTW, can I interest you in a life insurance plan that is only $9.95 per month, and guaranteed to never increase?

Yeah, I love those ads. I wonder if people actually think they're a good deal. They must think so since the ads keep running.


Yeah, I agree that it looked like they wanted to transfer the "guilt" to Fox and perhaps Newsnation(??) or some such.



So if McD or BK advertise their monster burger on CNN, does CNN bear the responsibility for the clogged arteries after eating the burger?


I think it's pretty much a hit piece as you suggest.



Still, lots to learn from seeing what kind of drivel is being advertised.

 

[Texas Proud]

How did they lose their life savings buying gold? I've never found precious metals to be a good investment (that I could work out anyway), but unless there was some scheme unrelated to the price of gold involved, it seems unlikely an investor could lose everything.

Fraud... back in the early 80s a coworker got a cold call from someone selling gold... we were both just out of college with not much saved... he invested his money... would tell me how much he had...


He kept buying more and as a courtesy they held it for him... until the gvmt came and closed it down with NO gold being held...

 

[rk911]

...BTW, can I interest you in a life insurance plan that is only $9.95 per month, and guaranteed to never increase?

Guaranteed Issue Life Ins. I suppose if that's all one could qualify for but the coverage one-unit of L.I. the "$9.95 plan" will buy is not nearly enough to pay for a funeral much less your 'final expenses'. Shameful.

 

[Badger]

Wait. You mean that mint quality 24 Karat gold clad buffalo tribute nickel for $9.95 I constantly see on TV isn't a good hedge against inflation?
The only gold I have is the gold on my left hand. That was expensive enough.

Cheers!

 

[old medic]

Wait. You mean that mint quality 24 Karat gold clad buffalo tribute nickel for $9.95 I constantly see on TV isn't a good hedge against inflation?

It sure is.... If your the one selling.....

 

[Koolau]

Wait. You mean that mint quality 24 Karat gold clad buffalo tribute nickel for $9.95 I constantly see on TV isn't a good hedge against inflation?
The only gold I have is the gold on my left hand. That was expensive enough.

Cheers!

Not a good hedge, but they sure are perty, ain't they?