Bullion Direct

jdsueu

Website looks to now be down....

ShadyDave

This should help explain why....




It never made sense to me why one would purchase a physical asset and then have another company store it and have access to it.

Pokermandude

Yesterday, Bullion Direct filed a declaration that stated that “when a customer placed an order, the precious metal was not actually purchased unless the customer agreed to take actual delivery of the product.” In other words, they never bought the metal customers purchased if it was to be stored.

Ouch.

BAJJERFAN

Originally posted by: jdsueu

Website looks to now be down....

YEP! Looks like it breathed its last breath yesterday. I liked the site for its spot price info. Easy to see spot price and any change in spot price.

claychaser

The "we store it for you" game has gone on for decades - and many of these outfits have collapsed and cheated the investors out of their money. When we they ever learn? "Run Forrest, RUN!".

JCMhouston

If you can't hold it, you don't own it.



I remember some of us getting slammed here a couple of years ago when I brought up Tulving's previous crimes and everyone said that was in the past. I think several people here have continuously warned that if you don't have it in hand you don't own it, but people just continue to be idiots.

roadrunner

Originally posted by: Pokermandude

Yesterday, Bullion Direct filed a declaration that stated that “when a customer placed an order, the precious metal was not actually purchased unless the customer agreed to take actual delivery of the product.” In other words, they never bought the metal customers purchased if it was to be stored.

Ouch.

Paper promises.....the foundation of the world's bullion trading system.



I watched Tulving operate their coin business in the 1980's. That's not something I wanted any part of...not even 20-25 years later in the bullion business.

PerryHall

Originally posted by: roadrunner

Originally posted by: Pokermandude

Yesterday, Bullion Direct filed a declaration that stated that “when a customer placed an order, the precious metal was not actually purchased unless the customer agreed to take actual delivery of the product.” In other words, they never bought the metal customers purchased if it was to be stored.

Ouch.

Paper promises.....the foundation of the world's bullion trading system.



I watched Tulving operate their coin business in the 1980's. That's not something I wanted any part of...not even 20-25 years later in the bullion business.

History repeats itself. Anyone remember National Gold Exchange? Rule number one is to always take possession of your precious metals. Always!

BAJJERFAN

Originally posted by: JCMhouston

If you can't hold it, you don't own it.



I remember some of us getting slammed here a couple of years ago when I brought up Tulving's previous crimes and everyone said that was in the past. I think several people here have continuously warned that if you don't have it in hand you don't own it, but people just continue to be idiots.

A leopard never changes its spots. PI

Rampage

Originally posted by: JCMhouston
If you can't hold it, you don't own it.

I remember some of us getting slammed here a couple of years ago when I brought up Tulving's previous crimes and everyone said that was in the past. I think several people here have continuously warned that if you don't have it in hand you don't own it, but people just continue to be idiots.

I agree. I see some of those companies (one particularly) on TV that says they will store it for you until you are ready to sell. I do not really believe those companies have the physical product. I think they just take the money from one and pass it along to another.

FredF

I used them a couple times years ago and had no problems - but I bought and took possession right away every time. From what I read, there were two ways to buy from them. Their store, and the exchange. The store was them selling product, the exchange was buying/selling with others. If you bought from the store, they took your money, then bought the item elsewhere once the check cleared. In the era where PM prices were going up super fast, they lost money on most of those transactions. They didn't hedge against price changes the way I assume the big PM vendors do. On the exchange, they were awesome because they only charged 2% total commission. But on the $40MM in business they expected to eventually be able to do, that's only $800k in annual revenue which isn't enough to run the company. So what happened was that people would send in physical metal to trade on the exchanges, and instead of keeping that metal, it was used to fulfill whatever order needed to be shipped out. There was still a computer record that you had sent it in, so you could trade it, but the computer was tracking millions of dollars of metal and the company only had a few hundred thousand worth. Some folks had their IRA's stored there, and those were apparently looted as well. It's a neat concept of a company but hard to make money unless you get high volumes, and there are so many places to buy PM's on the internet. Hard to undercut one of the really big boys on price, and too risky without hedging.

BAJJERFAN

Originally posted by: jdsueu

Website looks to now be down....

Seems to be back up now.

FredF

But you can't buy/sell anything there - see http://about.ag/BullionDirect.htm for details on the bankruptcy

BAJJERFAN

Originally posted by: FredF

But you can't buy/sell anything there - see http://about.ag/BullionDirect.htm for details on the bankruptcy

I know, but I don't care; I just like/d it for the metals prices.

bestday

Why people so stupid beyond me ....professional fees will eat 90 % of cash ..LOL