Given that gold is on fire, should dealers counsel newbies who call about the pitfalls of investing
Longacre
Posts: 16,717 ✭✭✭
It is odd that when gold is going up like crazy, everyone and their grandmother gets whipped up into a frenzy and wants to buy some. I thought that the trick was to buy gold when the price was low and no one was buying, but I might be old fashioned in that thinking.
I am sure that dealers' phones have been ringing off the hook over the last few days, particularly from newbies looking to purchase some gold coins. I think within the first 10 seconds of the conversation, a seasoned dealer should be able to tell that the person is a newbie.
What obligation (ethical, moral, or legal) do dealers have to counsel the newbie, and at least explain the pitfalls of investing in gold, particularly rare or semi-rare gold coins? Or should the dealer simply take the order and not worry about the reasons behind the newbies' call? Does the dealer run the risk of putting off the potential customer with a lecture on the risks of investing in gold or coins? What do you think?
I am sure that dealers' phones have been ringing off the hook over the last few days, particularly from newbies looking to purchase some gold coins. I think within the first 10 seconds of the conversation, a seasoned dealer should be able to tell that the person is a newbie.
What obligation (ethical, moral, or legal) do dealers have to counsel the newbie, and at least explain the pitfalls of investing in gold, particularly rare or semi-rare gold coins? Or should the dealer simply take the order and not worry about the reasons behind the newbies' call? Does the dealer run the risk of putting off the potential customer with a lecture on the risks of investing in gold or coins? What do you think?
Always took candy from strangers
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
0
Comments
that they would act in an ethical manner.
do you expect the same from people who sell stocks during
the dot com boom or right now?
lol. money in the bank is what they are thinking.
hook line and sinker.
Recipient of the coveted "You Suck" award, April 2009 for cherrypicking a 1833 CBHD LM-5, and April 2022 for a 1835 LM-12, and again in Aug 2012 for picking off a 1952 FS-902.
<< <i>Are you crazy? There has been no better time to buy rare gold coins in recent memory. I would suggest waiting until next week, though.
This is POTD. Very clever.
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
The big rule to me, is never buy coins with borrowed money. Also shop around for a decent price, especially on bullion related items. Do those two things and a person can only get hurt so much. For average collectors, buying in small increments and getting an average price will usually prove to be better than going all in, or all out. Same deal when selling, get an average price over time.
It will be interesting to see if the "Long Beach curse" occurs this time (next show 9/27 to 9/29). Often times the Long Beach show marks a short term high for the metals. If there are folks clamoring to buy and asking if the dealers will take credit cards, that is a sign a short term top is in.
From where I sit, I see very few on this board buying right now. Roadrunner and I are the only two that I have seen. I have seen quite a few sellers, since gold went above $700. Tops are made when the number of buyers reaches a relative maximum, and sellers a relative minimum. Doesn't look like a top to me, though only time will tell for sure.
<< <i>coin dealers drool over situations like this and i find it laughable
that they would act in an ethical manner.
>>
Just replenished my supply of common Unc twenties at $800 each because I have been sold out over a week and my customers WANT them. Should I tell my customers not to buy them---wait until I lose $200 on each one and then come back??
Do ANY of the non dealers on here EVER deal in the real business world? Does your Mercedes dealer tell you how proud you will be own and drive a fine automobile, or is the "ethical" thing to say "if you buy this car, you will lose $10,000 the minute you drive off the lot?"
<< <i>Do ANY of the non dealers on here EVER deal in the real business world? >>
No. My job is to ask questions on the coin boards.
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
Sadly, since no one can predict the top, they have no obligation to "counsel a newbie."
<< <i>Do ANY of the non dealers on here EVER deal in the real business world? Does your Mercedes dealer tell you how proud you will be own and drive a fine automobile, or is the "ethical" thing to say "if you buy this car, you will lose $10,000 the minute you drive off the lot?" >>
Actually, that's exactly what a car dealer told me here in Houston a few years ago. No, it wasn't a Mercedes and I do have a German car, and no it's not a Volkswagen either.
However, the figure was quite a bit higher than 10K. I liked his honesty, I bought the car.
John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
First of all, a dealer has no business assuming someone on the phone is a newbie.
Secondly, no investment should be bought without already knowing when and how to sell it.
<< <i>Newbies or otherwise, gold coins or otherwise, I've recommended to many people not to buy things, including some people on this very board as recently as Tuesday - and I would do the same for someone calling up 'in a frenzy' to buy gold. >>
If someone calls in a frenzy for gold, please direct them to a competitor's website on Monday afternoon. Thanks!