Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
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It was a special kind of alt investment--- a metal that vaporized after purchase
"Philosophically, the disappearance of their precious metal has left many Bullion Direct customers, who turned to gold as a safe port in a turbulent financial world, with a crisis of confidence. Attracted to an investment specifically because of its detachment from a government and financial system they didn’t believe in, now that their treasure has disappeared they find themselves wondering what, really, is permanent. “What’s safer than some bars of metal in a vault?” said Kenneth Burns, a South Carolina physician. “They can’t print metal out of thin air. It can lose value. But it can’t get to zero. At least that’s what I thought.”
"To some, it has been just as crushing to acknowledge the pieces of metal they thought would shield them from an uncertain world might have been only a glittering illusion. {The bankrupt company's new lawyer] said he continues to field calls from Bullion Direct customers who can’t grasp their gold and silver doesn’t exist."
I have never thought of gold as an investment. We hold, physically, a few eagles and maples against some bizarre occurrence and when we travel abroad we each carry one. I think at ages 75 and 73 the chances are are slimming that such an occurrence will happen in our lifetimes. BWTFDIK? The greatest moments of owning the stuff have come at the dinner table when we and the kids try to figure out where to hide it. A compendium of comedy... I feel bad for the folks who 'rented' a vault. No fun. Take care...it's a zoo out there. best, hawk
Alas and alack. This sounds like pure fraud and theft. However, it's still sad for the folks involved.
However, there is possibly a looming bit of a problem in the gold and silver arenas with a lot more paper bullion existing than the real stuff. It works as long as everything gets rolled over, but more and more holders are taking possession not unlike UofTx.
Possession is not really hard. You can go with a safe, or a safe deposit box. Geez, you can take a tube of American Gold Eagles (20) that is a little larger in diameter than a quarter and about 2" tall and hide it in a box of oatmeal. Er, that's about $23K per tube.
And I'm still of the same mind that everyone should have a small stash of bullion as a security blanket if you will. I consider that an investment in sleep.
In the late 70s there was a Florida (Ft. Lauderdale?) company called International Gold Bullion Exchange (IGBE). . Did a huge business for about a decade. Their glossy literature was impressive, showing a modern high rise headquarters and big vaults stuffed with bullion. I bought a couple 1-oz gold coins from them by mail. Nothing wrong with the coins. But they somehow got over-extended and began selling more coins than they had.
They did this by selling paper "certificates" claiming to be storing your coin in the vault free of charge. HA! Once they called me and asked me to mail them my coins for "safe keeping" and offered to pay 15-20% interest on their value while they held them. Even than, this was about double what they should have been able to borrow money for in the market. Something smelled fishy.
A year or so later they went bankrupt. All those vaults supposedly full of peoples' coins were found by Federal investigators to be empty. This must be an oft-told tale. Read MFO. Be very careful with your money. If it sounds too good to be true it is The world is full of scams.
Comments
Sad story for those investors
The greatest moments of owning the stuff have come at the dinner table when we and the kids try to figure out where to hide it. A compendium of comedy...
I feel bad for the folks who 'rented' a vault. No fun.
Take care...it's a zoo out there.
best, hawk
Alas and alack. This sounds like pure fraud and theft. However, it's still sad for the folks involved.
However, there is possibly a looming bit of a problem in the gold and silver arenas with a lot more paper bullion existing than the real stuff. It works as long as everything gets rolled over, but more and more holders are taking possession not unlike UofTx.
Possession is not really hard. You can go with a safe, or a safe deposit box. Geez, you can take a tube of American Gold Eagles (20) that is a little larger in diameter than a quarter and about 2" tall and hide it in a box of oatmeal. Er, that's about
$23K per tube.
And I'm still of the same mind that everyone should have a small stash of bullion as a security blanket if you will. I consider that an investment in sleep.
and so it goes,
peace,
rono
They did this by selling paper "certificates" claiming to be storing your coin in the vault free of charge. HA! Once they called me and asked me to mail them my coins for "safe keeping" and offered to pay 15-20% interest on their value while they held them. Even than, this was about double what they should have been able to borrow money for in the market. Something smelled fishy.
A year or so later they went bankrupt. All those vaults supposedly full of peoples' coins were found by Federal investigators to be empty. This must be an oft-told tale. Read MFO. Be very careful with your money. If it sounds too good to be true it is The world is full of scams.