Comment: Nate

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Nate

Nate,

I haven't called any of my clients or prospects for about a year and a half except for a couple of them. My phone rings enough as I write my 2nd and 3rd books. Having worked for a major gold dealer in learning their system, and then later writing a book about how they rip off their clients, and subsequently starting my own company, I can tell you that they don't sit around and short gold. They are all believers in gold.

They do tell their employees to call old clients constantly. Why? Because they are their best source of more sales; their bread and butter if you will.

But most of these outfits on TV that Glen Beck or someone else told you to call, sell high commissioned numismatic, rate, European, proof, collectible coins instead of the low commission bullion coins and bars. That's how they can afford the commercials!

I was involved in a lawsuit against one of these dealers where the city of Santa Monica won a $4.5 million settlement. It wasn't nearly enough to help those that invested. That company had $500 million in sales and they frowned upon anyone who would ask to buy bullion as well as any sales person who sold their clients bullion. You would then be fired for lack of production as in that business, you're easily replaced by someone else hungry to make money from selling crap to people; similar to a boiler room operation.

The price taking a dip right after you buy just means the market is falling. It's not the dealer doing this. Naturally, the last 12 years as the price of gold moved higher, most people who bought were rewarded. The carnage has mostly come of late, so if you bought in the last year to two years, you may have had that experience because of the current downturn in prices.

Author of Buy Gold and Silver Safely
Next book: Illusions of Wealth - due out soon
Also writing book We the Serfs!