When this article was originally published, Atlanta Gold & Coin had told readers about Bullion Direct roughly a month earlier, noting that it suspended operations. As the familiar expression suggests, smoke can point to a larger problem. The original article later reported that Bullion Direct had filed for bankruptcy protection. At that time, the article described an alarming number of sizable online coin and bullion dealers that had gone out of business, including Merit and Tulving, among other examples. In Bullion Direct’s situation, the article said it was alleged that, in at least some instances, the company did not buy the gold and silver coins and bullion for people who selected its storage service. Customers believed they had bought physical coins and bullion for storage in Bullion Direct’s vaults, but reportedly learned that the money had instead been used for other purposes, including funding the Nucleo Exchange program. This archived article set out steps readers could use to reduce the risk of losing an investment while buying gold and silver coins and bullion.
Purchase Locally
At the time of publication, many people believed online coin and bullion dealers cost far less than local dealers and therefore represented the best approach to purchase coins and bullion. The original article explained that this was not always true. A buyer only needed to locate a local coin dealer whose business model and philosophy resembled those of many online dealers. With careful research, the article suggested that readers could likely find a local dealer willing to offer prices comparable to online pricing, particularly for larger coin and bullion purchases. The clearest local benefit, according to the article, was taking physical possession of gold and silver at the time of purchase. If, at publication, a local dealer did not have the desired inventory, readers were invited to ask whether the dealer would make a purchase through the wholesale market. Most established dealers belonged to major dealer networks, commonly called the wholesale market. The article identified two of the country’s largest and most respected networks as Certified Coin Exchange and CoinNet. For a special wholesale-market order, the original article said readers should expect a dealer to request a deposit. It characterized that as reasonable because it helped make the dealer whole if a customer later backed out of the obligation. However, the article advised against paying the full amount in advance unless the dealer could provide documentation showing that the coins had been ordered and/or shipped. That documentation was presented as a way to reduce the risk of losing the investment.
Coin Dealer’s Reputation
As the opening section of this archived article explained, smoke often signals fire. At publication, it advised readers who heard that a coin dealer was having problems, or had encountered problems in the past, to consider another dealer even when that dealer offered the lowest price. The article noted that internet access made it fairly simple to search for information about a company’s reputation and its owners. It described the Better Business Bureau as a useful starting point, while emphasizing that it was not the only source. Other independent websites rated coin dealers, and industry-related organizations helped keep dealers in check. Word-of-mouth reputation still mattered, but the article observed that people were increasingly sharing their experiences with businesses online. Readers at the time were invited to review comments on social-media and review sites, including Google+, Kudzu, Bing, Yelp!, and Facebook. One unfavorable comment was not necessarily a reason for serious concern, but the article advised avoiding a dealer with a recurring pattern of dissatisfied customers. It also recommended searching for the company’s principals, since a dealer under consideration could have had previous ventures that did not end well.
At publication, Confirm Current Inventory
At the time this article was published, readers who preferred to purchase coins and bullion online, or who lacked local dealers willing to offer reasonable pricing, were advised to confirm that an online dealer’s inventory was live. The article also said to obtain an estimated shipping date. If the dealer avoided that question, readers were invited to move to another dealer. It further stated that if a dealer could not commit to shipping within three days after an order was completed, the dealer likely did not have inventory in stock or could have been backlogged. Because inventory could change very quickly, especially when gold and silver prices declined significantly, the article advised asking the coin representative those questions when placing the order.
Accountability
When this article was originally published, it advised people whose chosen online coin dealer had not fulfilled its obligations to act immediately to protect their interests. As the old saying goes, “squeaky wheel gets the grease,” and the article said the same principle applied in the coin and bullion industry. It invited affected readers to report the matter to their local Better Business Bureau and to any professional organizations connected with the online dealer. The article also said they might notify local authorities about possible fraud. It noted that many people who had purchased from Tulving and Merit lost thousands of dollars, but reported that people who acted promptly and reported their problems were often made whole, either through refunds or delivery of the items. Its point was that readers should not simply accept the situation or assume that dealings with a potentially questionable dealer meant they could not be made whole.
Summary
In closing, this 2015 article discussed Bullion Direct’s then-recent bankruptcy and outlined measures readers could take to limit losses when purchasing coins and bullion. Atlanta Gold & Coin stated that dealing with a local coin dealer was generally the preferred option for the reasons already described and as others. The article added that readers could be reasonably safe if they thoroughly researched a prospective online dealer and its principals. At the time of publication, readers who called an online dealer were invited to confirm that live inventory was in stock; if the dealer had none or did not answer directly, the article suggested choosing another dealer. It also advised confirming a shipping date in order to track the order. For readers who had experienced problems and had given an online dealer a reasonable chance to resolve them, the original article encouraged proactive reports to the BBB, industry-related organizations, and possibly local authorities to protect their interests. At publication, readers were invited to follow Atlanta Gold & Coin on Twitter and like it on Facebook for the latest coin and bullion industry developments.
