Is Goldline A Scam?

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Gold Bars & CoinsGold has always been seen as a nice safe store of value. When the world is in crisis, people turn to gold for stability, which is why the price of gold is around $1,200 an ounce these days. I’m not an investor but one important lesson, repeated by savvier investors, is that gold itself may be an investment but it’s true value is as an independent store of value. Should your home currency ever be deemed worthless (in the case of hyperinflation), you could take your gold to another country and convert it into their local currency. If your government were to collapse, you could go elsewhere and still have purchasing power.

You can see how gold has value when the world is in crisis right? That’s given rise to a lot of companies that are looking to make money from the increased popularity in gold. I’m sure you’ve seen ads from Cash4Gold, looking to pay you top dollar for your unwanted jewelry, but there are also companies on the other side. Companies who have gold and are looking to sell it. One of those companies, made popular by their spokesman Glenn Beck, is Goldline.

People want to know – is Goldline a scam? Representative Anthony Weiner of New York seems to think so.

Is Goldline a Scam?

The short answer is No. Unlike Cash4Gold, which has been shown to employ questionable sales tactics, Goldline is a legitimate seller of gold.

However, that doesn’t mean they’re the best place to buy gold. Fortunately gold, like any other commodity, is traded on the open market and you can get a spot price for it. You can use this spot price to determine the true market value of the coins you’re buying to see if it’s a good deal. When the cost of the coin is significantly higher than the gold value, you are overpaying to own gold. The gold coins might have artistic or numismatic value, above and beyond the metal value, and every business has to add a premium for profits, but at some point you are overpaying.

That’s the principal complaint about Goldline.

Bid-Ask Spread

In an open marketplace, the bid is the amount someone is willing to buy something for. The ask is the amount someone is willing to sell something for. Market-makers, the people who “put” sellers and buyers together, can generate a profit off the bid-ask spread – they buy it at one price and sell it at a higher price. In the Consideration for Investors section of the Account & Storage Agreement, Goldline explains that the bid/ask spread on semi-numismatic and numismatic coins is 30-35%! That means Goldline is making at least 30-35% off each sale… that’s a pretty healthy profit margin.

Goldline is, by their own admission, overpriced.

Here’s a video from the Dylan Ratigan Show on MSNBC that looks at Goldline (includes Representative Weiner, Peter Schiff)

Here’s another video of Peter Schiff explaining why Goldline is overpriced:

Protip from the video: If you want to invest in gold, buy gold through an ETF.

Goldline isn’t a scam, they’re a savvy business. They recognize that people are panicking and they are putting out a product that people think they need. They’re advertising on programs, and using pitchmen and women, that bombard their viewers with doom and gloom (perhaps rightly so). Who is to say the numismatic value of these gold coins isn’t 30-35%? 🙂

Is this any different than someone selling bottles of water at $2 outside a ball game or a concert?

(Photo: bullionvault)

{ 63 comments, please add your thoughts now! }

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63 Responses to “Is Goldline A Scam?”

  1. louielou says:

    gold has always gone up since the beginning of time. if you are buying gold for instant gain look elsewhere. be patient. i have heard from friends when gold was 650 that was the peak then it hit a $1000 that was the peak then $1200.. listen to your heart and most importantly listen to history i bought gold for my daughter who is an infant i could only imagine where i would be if my parents did th same for me as an infant. the pair of nikes you bought for a $100 cost 40 cents to make think about that.

  2. Marc says:

    I have been looking around the Net because I am about to buy gold and I’m looking for info. I notice there are several sites that bash Goldline and Glenn Beck.

    I don’t watch his show, read his books or care much about him however I find it interesting that in the bashing comments above the authors don’t even know how to spell his name! And a “Former employee” is code for Chicken Sh*t. Anyone could write anything. You have a name or it’s likely B.S.

    I especially noted some “complaints” on the Web that curse FOX as well. Like FOX is selling you gold? These types of comments are made by frustrated liberals at best.

    I did ask Goldline a few questions about the buy-back policy and it can be a bit of a loser if you sell 1. at the wrong time, 2. you sell it back to them, 3. you are selling because you have to. I’m going to ask a couple of gold buyers, pawn and jewelry stores about their prices.

    Perhaps my wife can wear a small bullion bar on a chain necklace, it would be the cheapest way to buy her jewelry!

  3. n8 says:

    I was taken by goldline, if i had trusted my gut & not the snake oil salesman account rep i would have been up 12k rather than 1k! an expensive learning lesson

  4. CR says:

    I lost my shirt buying “rare” numismatic 1oz gold coins. DO NOT BUY THESE COINS UNDER ANY CIRCUMSTANCES. All you will do is PAD the pocket of the coin dealer, sales person pressuring you to buy them. PLEASE educate yourself BEFORE buying gold. I got my education AFTER. I am IN THE HOLE BIG TIME. PAID 2650 for PCGS graded ms 64 liberties. Dates 1900. Gold bullion is at 1509 and oz. and I can’t even break even on the cost of my coins till bullion reaches 1900 to 2000 dollars an oz!!!!!!!!!!!!!!!!! If I had bought gold bullion coins back in september 2011 when gold was 1360 an oz. my profit would be about 1500 dollars a coin instead I have LOST 500 dollars per coin as my coins are only bringing 2150 apiece in todays market! BUYER BEWARE!!!!!!!!!!!!!

  5. AF says:

    I starting to buy gold coins in 1974, when only gold Krugerrands were available. Then along came Canadian Mapleleafs. Bought those around1980. With enough gold to keep in safety deposit boxes, I realized that the REALLY sensible investment today is SILVER. I have bought bags of “junk silver coins.” Today, a pre-1965 dime is worth over $4.00. A quarter is worth $12.00. When US currency soon blows up (hugely-inflated dollars), that old dime might be worth $40.00. Gold is like jewelry. Silver is like future purchasing power and trading forms of money.

  6. maggie says:

    I lost our savings buying from goldline. Their people are very well trained, they seem to be empathetic, caring and genuinely good people. It is all BS. I called to buy bullion and was talked into numismatic coins. I was advised by a very kind,charamistic woman to speak to one of their financial advisors before making my decision on what to purchase (I wasn’t sure whether to go with Eagles, Canadian Mapleleafs etc, some kind of gold bullion.) This guy was so good he convinced me to buy old coins despite the fact I had previously spoken to and left other companies trying to do the same thing! Stupid? Yes! These people are some of the best cons that exists. I cannot explain it, even now. He presented himself as an advisor, in fact when I was transfered to him he was called a retirement advisior or specialist. He was just going to make sure I was not making a mistake with my purchase. STAY AWAY!!!! These guys are trained cons. No one is born knowing how to lie and cheat and hurt people like this. However it takes a special kind of heartlessness and evilness to know what you are doing and continue to do it. Former employee, I have nothing but respect for you for leaving what had to be well paying job. Goldine does a very good job of scrubbing the internet, I have discovered. Don’t stop putting out your message.

  7. Gerrys says:

    On any investment where you are investing significant dollars, you have to assure yourself that you are getting in a a fair price, and have an idea of what you could immediately liquidate that investment at. If you need a 30% increase to break even, it is a suckers trap and there are probably better places to buy that product or better investments to make. Stocks are normally easy unless you are buying penny stocks where the spreads can be enormous.
    When buying bullion coins you need to check multiples sellers and also see what the coins are being sold on Ebay, remembering that sellers must pay fees on expensive coins equal to 3% + $50 plus a smaller listing fee, so a $1500 coin can cost the seller $100 to sell.

  8. CR says:

    I am saddened to see that I am not the only one who was scamed out of the hard earned money I had it invest in gold to try to grow my savings. It makes me wonder with all the people buying so called “rare” coins at HUGE mark ups from gold line, and other companies, how are they still in business? Why isn’t the truth OUT THERE? It is very dishearting and alarming that people are STILL getting ripped off everyday. BUY BULLION NOT OLD COINS! And never pay attention to the shim sham about government confiscation of gold unless its those rare gold coins that are exempt. That is a bunch of gobbly gook.

  9. John Sax, Walter Vera, Paul Land says:

    Goldline is a scam. Plain and simple. They sell bullion Swiss Franks and other coins at twice their value and then tell you their difference between their bid and ask is 35%. BS ! It’s 54%. They sell at 100 and buy back at 65. Do the math. Your gold has to go up 54% for you to make profit by selling back to them. DUH !

    They treat their account executives like crap. The give a few of them all the best calls and give them access to the new class so they get TO’s and make money while treating the rest like crap. If a wire comes in and you’re not there, do you think it goes to your back up? NO. It goes to R. Fazio’s buddies. Calls come in and people say they want to buy right now? Think it’s fairly distributed? NO. Goes to Bobby’s little friends.

    R. Fazio is only there to humiliate and mistreat people because he can. His actions only hurt the company but the company doesn’t know it because they are all in the right place at the right time. Want to know why people go to Mr. Albarian? They are sick of Bob Fazio’s crap. Unfair lead distribution, unfair TO distribution and Fazio giving people crap over petty nonsense and blatant favoritism to his buddies.

    Goldline can increase its sales immediately and retain it’s employees just by changing Fazio’s behavior or firing his ass. Look at the rash of AE’s going to other gold companies. Why? Robert Fazio.

  10. Paula, Gaye, Sean, and others says:

    I work for Goldline right now and I agree with the above post. Robert is an ass. On the one hand, he has a hard job and Mark Albarian gives him a hard time and over manages but Robert walks around and harasses people and demeans them. Then he comes back and apologizes. He knows he’s an ass. I’m surprised he hasn’t been punched out by someone there. One of these days, Robert is going to get decked.

    The lead distribution is so unfair. I get one lead a day while the guy across from me gets 15. But he’s a ‘superstar’ and earns 7 times more than I do. Gee, he gets 15 times more leads yet earns 7 times what I earn. Who’s the superstar?

    No wonder people go to Merit.

  11. Buddy Bubba says:

    I to have been suck in by goldline i bought 62 of the 20swiss franc for $402 i will have to make it up to at lest $804 to break even and that’s not to mention 1% lucdtion fee $15 and 28% TAX i have to pay so i guess i lose out.

  12. Anonymous says:

    I was overcharged by Goldline. What are my options….

  13. Buddy Bubba says:

    To Anonymous: I think the best thing you can do is like a lot of folks you just keep your fingers crossed and hope the gold market will go up, I still think it can, we will see in 2012.

    But what about these Cental Banks..?? are they keeping gold price’s down.

  14. MG says:

    “If you don’t “have” your money, you don’t “have” your money.” If you do not physically have your cash, your gold and/or your silver in your possession, you DO NOT HAVE your money. Whether gold et al is overpriced or whatever, or Goldline or whomever is or is not the best place to purchase precious metals, at the end of the day you must have physical control over your money. Electronic funds, stocks, etc. can easily go “poof!”

  15. Mel Lahmann says:

    I was one of those who decided to buy gold & silver from Goldline after watching Glenn Beck & Fox News. It was not until I got a statement from Goldstar where my coins are stored, did I question the markup. I was ignorant about the gold market.I called Goldline more that once and was given a run around storey. I didin’t understand and it has taken me a long time to figure out what they did to me. I am on a fixed income and this was supposed to be an investment for me but it turned out to be exactly the opposite. I was told there was a law suit against Goldline but as of today May 10, 2012 I have not found it. I tell everyone. Don’t buy from Goldline!
    This is in my IRA so I can’t really get it although I am ouve 701/2 so I have to start taking from my very small IRA”S. Anyonw have any suggestions as to what to do?

  16. SteveV says:

    Goldline salespeople work on commission. Its prices are way too high. Buy elsewhere.

  17. no3gods says:

    I hate it when they don’t put a date on their article….that is Journalism 101

  18. terry says:

    Prter u almost had me untill…u said GL. price was $270.& Other price was $230 for same coin & said that was 70% difference!!!!i’m only a Truckdriver & i turned u off after that blatant LIE…!!!u DEMOCRATTT make up s/thing else or just Demonize ME IF U CAN !!!!!!!!!come on!!!

  19. brenda says:

    Where is the best place to buy gold and silver

  20. VeryUpset says:

    Goldline employees, training and company culture is HELLLLL. They steal, lie and cheat for every last dollar out of people. They bait and switch and rip people off. Robert Fazio was the worst person I have ever met or worked for. I dream of the karma they have coming back to them in HELL!!!!!

  21. Russell says:

    This is why it’s important to do some research on the various types of gold that are active in the current market and also meet regulations set by the IRS. Calling around and asking several gold and silver dealers about the types of gold that can be stored legally and there estimated current value will help to avoid these kind of pitfalls.

  22. Michael says:

    Please tell me, do they charge this premium on BULLION? Why are we even talking about coins?!?!

  23. Pete says:

    Goldline International is NOT a Scam. Are they the BEST company to use for your IRA rollover? Not in my opinon… They’ve been around for a while and have racked up their share of criticism. We’ve researched and reviewed all of the top companies and Goldline was not one of our top choices. Check our site, or check with TrustLink and the BBB to get a better idea which company to go with.

  24. Matt says:

    Goldline is definitely not a scam. In fact, they are one of the more reputable companies when it comes to investing in gold & other precious metals.

    What I will say is that any person considering a five or six-figure investment in PMs should definitely do their homework and check out consumer feedback and reviews.

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