My phone rang yesterday, 10/18/18, and an elderly gentleman told me he had bought metals from me years ago, was glad to hear my voice again, and sorry to bother me, but he just wanted to ask me a question. No problem, of course. The question was, “Are you having any trouble getting gold and silver from the U.S. mint. You know, Gold and Silver Eagles?”
My answer was instant. “Heavens no. We never have any trouble. Why do you ask?”
He then told me his problem, and I still am feeling so sorry for him. It seems as though he had stopped dealing with us (Colorado Gold), and had been dealing with a firm in Florida. He ordered something, and of course paid, but he has yet to receive the things he ordered and paid for.
“How long has it been since you ordered and paid?”
“Two Months.”
He then, of course, remembered that when he dealt with me, several years ago, everything was fine, and he received what he had ordered promptly. I asked him the name of the company, and whether they had an A+ rating at the Better Business Bureau, like we do, and always have now for several decades. He wasn’t sure. I told him that when a business goes broke, they try to get as much money as possible in the till before they shut the doors. I told him that he probably won’t get his metals or his money back. Which makes me think of three examples which happened to me or a client, all three typical.
The first is when I began dealing in precious metals. I had sold my Grand Imperial Hotel in Silverton Colorado, in 1975, was living in Scottsdale, and had bought an old brick rooming house in downtown Phoenix. I was turning it into America’s first non-smoking restaurant, which is an interesting story too, but has nothing to do with this. As I was busy working on the restoration, a man came in, asked me if I was from Silverton, and if I was, I surely knew about gold. He told me that when I got finished with my project, he was starting a gold and silver business at the First National Bank building a couple of blocks away, and for me to please come down and broker some precious metals for him. I’d never done that, but I told him I would, which I did. To compress the next 3 12 years, I did go there, was doing very well, making money, and all seemed to be OK. By early 1979, I noticed that my clients were receiving their metals later and later. A few other things bothered me as well, so I gave my notice and quit. The firm had grown from me and one other fellow, into a rather large business, and everyone thought I was nuts for quitting. I dealt my customer cards to people in the office, and walked out the door, after first writing to all my clients, warning them to never allow anyone to ‘store’ their metals for them, thanking them for their business, etc.
My worries were correct, and within a year, North American Coin and Currency was broke, and its officers were in jail. Millions were lost by customers who had allowed North American to ‘store’ their gold for them. Many, of course, had paid but never received their goods. Obviously, North American had sold the ‘storage’ to try to stay afloat, and millions were lost. The head trader for North American then started his own firm, and that went broke also, and I almost suffered a $10,000 loss from a client who had paid but not received his gold. I solved that, never mind how, and he got his gold. We’ve been dealing with probably the world’s largest precious metals distributor for close to 40 years now, and we love them and they love us.
A few years ago, a really great guy, a client in Texas, who Bonnie and I visited in his sporting goods store, had some Ronald Reagan one ounce silver coins fabricated to give to his best clients. (We don’t do things like that, or I am sure would have ordered from me). He gave me one, and I still have it. He ordered more, and of course paid in advance, but never got them. They went broke.
Maybe that’s why we don’t advertise. Our reputation suffices. I got into precious metals brokering in November of 1977, and no one has ever lost a dime from me, or my kids. I get a report from the Better Business Bureau every month, telling me how many people had checked our reputation by personally calling them or by e-mail. Quite a few. When I formed Colorado Gold, there were no TV advertisers, offering free silver, and lots of other come-ons, as gyp artists will always do. We just work out of our individual homes, with no employees, advertising, or fake, scurrilous offers. 1% to buy, including shipping, and $25 to sell, does fine. Thanks for your business! – Don Stott – 1-888-786-8822