Buying bullion from the big boys

CptCrunch · October 1, 2008 9:37AM

I decided to make my first large purchase of bullion today which was around 100k. I went through google and found Goldline. Before calling I made up my mind to buy coins not bars, but I did not really care about which country they were from. So here comes the shock of a LIFE TIME. I called Goldline and they told me American Gold Eagles were in stock and there would be no problem filling my order all I needed to do was wire the funds within 24hrs. I assumed once the funds were received my coins would go out. When I asked the shipment day the woman on the phone told me it would take 4 WEEKS to process my order. So here is the question. How does it take 4 weeks to process an order when the product is in stock and the funds have been received?? I understand they are a very large company, and business is booming for bullion dealers, but 4 weeks is outrageous. After I got over the initial shock I started to wonder if this dealer even had the coins in stock, or where they just accepting a nice short term loan from me interest free. Is this common practice in the bullion business????

SilverEagles92 · October 1, 2008 9:41AM

If it takes 4 weeks, I doubt they are actually in stock. Or, if they are, they didn't have enough to fill your large order, so they would have to order more coins from their suppliers.

Stella · October 1, 2008 9:43AM

I think that SilverEagles is on the right track. I know from experience that certain dealers are always "out of stock" during a temporary downswing in metals prices, so there are surely a variety of reasons to explain how they will not send you the coins for 4 weeks.

Swampboy · October 1, 2008 9:44AM

Gotta watch that google machine.

Sorry, I couldn't resist.

rgCoinGuy · October 1, 2008 9:54AM

I've never heard of goldline, but that doesn't really mean anything.

I would suggest going to the PM forum for advice on this, as there are some really good and smart people there.

I would look at Kitco or Apmex for this large of a purchase, but you may get other ideas on the Precious Metals Forum also.

Link

derryb · October 1, 2008 10:03AM

Try these guys. 10 oz. minimum gets you free shipping.

Only Gold

cinman14 · October 1, 2008 10:05AM

teletradedirect.com

See ya on the PM forum...

nickel · October 1, 2008 10:12AM

smaller orders are easier to fill .
large orders usually send sellers into a frenzy.
buyers keep calling our B&M for precious metals.
eventually stability will return.
everyone wants to buy low , no one wants to sell low .

DoubleEagle59 · October 1, 2008 10:42AM

Sounds ridiculous to me.

You wire 100,000 dollars (which is almost instantaneous funds in their account) and you have to wait 4 weeks!!

I'd recommend the following. In any major city there is a wholsale jewelry district consisting of a block or two of jewellers, diamond dealers etc....and gold refiners and suppliers. The gold suppliers supply the jewelry business in a big way and would have plenty of gold kilo bars available.

A kilo bar of gold (1000 grams) is approx. 32 ounces of gold.

At $900 per ounce, a kilo bar of gold would cost you approx. $29,000.00

If I were you, I'd go directly to one of these gold suppliers, make arrangements for the transaction and personally pick up the three to four kilo bars of gold.

Forget 'Goldline' and do it yourself.

Edited to add: my Toronto gold supplier charges about $350 (total) over spot price for a kilo bar of gold.

mrearlygold · October 1, 2008 11:03AM

I hope you did not wire them any money and I don't think I need to comment on that type of sales tactic.

While there is a shortage of some bullion products it's not across the board in terms of gold products. You can easily buy gold buffalos for example and not pay an insane premium. There's also deals of the day that if you are prepared to wire funds, you'll get a good deal and have it in your hand in a matter of a couple of days.

Let me say however that the momentum does seem to be building in gold , for example a colleague who had roughly 1300 $10 Liberties that he had a great difficulty in moving, sold them all within a few days this past week. So if you are offered product at a fair price today, get it as it might not be there tomorrow.

Far as deferred delivery, I have had to place deferred delivery orders for 100 oz silver bars. I don't like it but that's the way the cookie crumbles. But that's a different product too.

mnmcoin · October 1, 2008 12:40PM

Nobody has that many gold eagles right now. As long as you are locked in on price though, what does it matter. Sort of like short term free storage.

morris

MoneyLA · October 1, 2008 2:59PM

the whole point about buying gold is to have immediate delivery to protect you.

anybody remember Internationl Gold Bullion Exchange of Ft Lauderdale, Florida that went bust in the early 1980s ??

When the feds showed up (after so many complaints) they found their vault was filled with blocks of wood painted with gold paint.

buying gold means you want immediate delivery.

otherwise, you want to buy gold assets on a stock exchange where you have other forms of investment protection.

Amigo · October 1, 2008 3:00PM

I would be mad as H*E*L*L

No way would I let them get away with it. You can't sell them 100k with a promise of sending it to them in 4 weeks. That is outrageous. I would demand an immediate refund. If they don't comply, I would call Law Enforcement to pay them a visit.

KentuckyJ · October 1, 2008 4:26PM

Wouldn't it be much easier to buy the GLD or options on the GLD? (NYSE ETF for gold)

stevek · October 1, 2008 6:06PM

Sorry to say but me thinks if gold goes up in price in four weeks you won't ever receive your order, and if gold goes down you would receive your order....and I am completely ignorant about this company but it is sincerely hoped that you receive either your order or your money back, which as mentioned with another post here, isn't a guarantee....because "4 weeks" could turn into another "4 weeks" or possibly never. Hope I'm completely wrong.

stevek · October 1, 2008 6:38PM

The OP uses Google.- well Google "goldline" "scam" and you'll notice quite a few hits as well as a Youtube video.

segoja · October 1, 2008 8:30PM

What did you pay as a premium over spot?

There are some pretty strong buyers on CCE for Eagles.

I hope you get free delivery!!!

garsmith · October 1, 2008 11:26PM

<< no problem filling my order all I needed to do was wire the funds within 24hrs. I assumed once the funds were received my coins would go out. When I asked the shipment day the woman on the phone told me it would take 4 WEEKS to process my order >>

That want your funds within 24 hours because they are filling for bankruptcy in 36 hours

CptCrunch · October 2, 2008 2:25AM

Thanks a lot for all the help. I feel a bit out of my league on this. They quoted me roughly 8% after I broke down all the fees.

ProofCollection · October 2, 2008 2:11PM

Goldline is a scam! They have an army of high pressure phone salesman. Good bullion dealers don't need to hire or use high pressure sales tactics. There are some good sugestions on here, and another good one is allamericangold.com. They are local for me, honest, and their prices are VERY competitive. They also have a PM savings plan.

NumbersUsacom · October 2, 2008 2:17PM

SEGOJA,

That is sure one beautiful IKE. I'm not into Ikes in general, but that one is supreme. Thank you for sharing.

BAJJERFAN · October 2, 2008 8:29PM

i'd try here

fishcooker · October 2, 2008 10:29PM

Sending $100k today... so that maybe, someday, possibly, 4 weeks from now... something might be sent to me?

My money management strategy says "No, Never in a million years." A different person with a different strategy might be willing to gamble, though.

CoinHusker · October 2, 2008 10:46PM

$100K = lifetime telephone solicitations.

Seven · October 3, 2008 12:46PM

If you are buying for investment buying coins isn't a very good idea. The spread is too large- and that goes with any coin of any metal. The SAE were selling $2.99 over spot 6-8 weeks ago- its even higher now and the buyback is less than $1 over spot. If you buy the bars the spread is very low. Why piss away your profits on huge spreads!?!?

BTW, Monex has the best prices for ANYTHING!!!! They would have shipped much quicker. NWTMINTBULLION will give you a great idea on the buy/sell price for any coins and are the most generous with letting you send your check in by regular mail (albeit Monex pays for the overnight shipping). Apmex is by far the worst company to deal with.

jimmcwho · October 4, 2008 11:02AM

jimmcwho · October 4, 2008 11:03AM

jimmcwho · October 4, 2008 11:09AM

I've bought from Goldline many times and have never had a problem with them. Right now I believe they have some kind of guarantee if the price drops within two weeks of purchase they will refund the drop.

ProofCollection · October 4, 2008 12:39PM

<< <i>I've bought from Goldline many times and have never had a problem with them. Right now I believe they have some kind of guarantee if the price drops within two weeks of purchase they will refund the drop. >>

I'm sure they have fine service, but their prices are outrageous and their high pressure/agressive sales tactics are a big turn off.

stevek · October 4, 2008 1:23PM

<< <i>Goldline is a scam! They have an army of high pressure phone salesman. Good bullion dealers don't need to hire or use high pressure sales tactics. There are some good sugestions on here, and another good one is allamericangold.com. They are local for me, honest, and their prices are VERY competitive. They also have a PM savings plan. >>

If reading their disclaimer on their website, they even admit they have commission salespeople working for them.

stevek · October 4, 2008 1:26PM

<< <i>

<< <i>Goldline is a scam! They have an army of high pressure phone salesman. Good bullion dealers don't need to hire or use high pressure sales tactics. There are some good sugestions on here, and another good one is allamericangold.com. They are local for me, honest, and their prices are VERY competitive. They also have a PM savings plan. >>

If reading their disclaimer on their website, they even admit they have commission salespeople working for them. >>

ACCOUNT EXECUTIVES: The Account Executives at Goldline are generally commissioned salespersons. Their commissions are usually greatest on rare coins and semi-numismatic coins and least on bullion related products. Their work experience, knowledge, background, and training vary widely. They and/or Goldline may receive, from time to time, undisclosed compensation for recommending specific coin or currency products (including but not limited to contests, cooperative advertising, and trading profits in coins that they may own and/or sell). Goldline's employees are not licensed as investment advisors and are not authorized to recommend the purchase or sale of any product or investment other than the products specifically sold by Goldline. Check with a licensed professional with expertise in a particular market before making a decision to buy or sell any security, bond, annuity or financial instrument.

Buying bullion from the big boys

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