Diversifying your assets with precious metals is a move championed by many financial gurus. Given their scarcity and global demand, these metals are stellar choices to cushion against unpredictable market shifts.
Over time, the value of these metals has shown promising growth. What's more, when the time comes to convert your holdings back to cash, it's a breeze. Their universal allure ensures a swift sale, often letting you pocket the cash on the day you decide to sell.
It's quite evident that integrating precious metals into your financial plan is a wise move. Yet, the hurdle many face is choosing the right firm to facilitate this investment. With many firms touting their expertise, pinpointing a trustworthy one can be daunting.
One name that popped up in your research is Metals.com. Let's delve deeper into their offerings and ascertain if they're the right partner for your investment journey.
Launched in 2008, Metals.com swiftly became a premier precious metals retailer within the U.S., dealing exclusively in physical bullion. You might also recognize them by names such as Chase Metals, Tower Equity, or Barrick Capital.
They specialized in facilitating the direct purchase of gold and silver coins or bars sent straight to one's doorstep. Moreover, they extended IRA offerings, collaborating with IRA custodians to guide clients in initiating a new Precious Metals IRA or transitioning an existing retirement fund into one.
For over a decade, Metals.com was heralded as a reliable giant in the sector, gathering glowing reviews and nods from diverse firms and groups as an excellent pick for individuals eager to diversify with precious metals.
But come 2020, a cloud of suspicion formed over them. Accusations surfaced about deceptive practices at Metals.com. By September 2020, the firm was in receivership with assets on hold. We'll delve deeper into the intricacies of this in the ensuing segments.
Currently, Metals.com's online presence is dormant. Attempting to visit their site will reroute you to an advisory page detailing the ongoing legal processes and highlighting that any correspondence claiming to be from metals.com or barrickcapital.com breaches court directives and should be dismissed.
Regrettably, numerous warning signs surround Metals.com. As previously touched upon, their online presence is currently dormant. The firm faced suspension due to entering receivership following significant grievances raised against them.
These grievances weren't trivial. Investigations suggest Metals.com might have duped over 1,600 US residents, costing them $185 million. Reports indicate that Metals.com priced their precious metals at rates soaring up to 300% over the prevailing market rates.
Glancing at esteemed review platforms can offer more insights into Metals.com's troubling history. Contrary to several gold investing entities, they never secured BBB accreditation.
From bodies like the Better Business Bureau and Business Consumer Alliance, Metals.com received a dismal F grade. Observing even a B or C grade when peak attainable grades are A+ (BBB) or AAA (Business Consumer Alliance) is concerning. But an F grade signals caution.
Furthermore, the Better Business Bureau's portal cites 24 grievances against Metals.com over three years. Over half of these critiques pertained to the company's product or service quality, while others highlighted disputes with their promotional tactics, sales policies, or delivery issues.
Navigating the authenticity of a company can be complex, especially discerning between a genuine business with lesser service quality and an outright scam. However, with Metals.com, the scales lean heavily towards it being a scam. The company is embroiled in lawsuits over fraudulent activities that have affected 1,600 individuals, amounting to financial misdealings of over $185 million. This casts a dark shadow, making it hard to see Metals.com as anything but a scam that prudent investors should avoid.
A deeper look into customer testimonials reveals a disturbing trend. A significant number of their alleged victims are senior citizens. Numerous accounts have emerged of elderly folks being misled into pouring substantial chunks of their life savings into precious metal investments or Precious Metals IRAs. This was done under deceptive pretenses, with Metals.com misrepresenting investment procedures, undisclosed tax implications, and other vital details typically clarified during investment discussions.
To better illustrate the extent of their fraudulent activities, here are personal anecdotes from families affected by their actions:
In one instance, a lady recounts the ordeal her recently widowed mother underwent. Metals.com incessantly contacted the grieving senior, bombarded with claims of her savings being insecure in banks, insinuating potential total loss. Falling prey to their pressure tactics, she purchased gold and silver coins at rates grossly exceeding current market values. When the daughter intervened, reaching out to Metals.com became a two-month-long endeavor. Upon finally connecting with a company representative, they proposed a buy-back, but at a value of $50,000 less than the initial investment. What's even more disconcerting is that market prices for gold and silver had noticeably risen during this period.
Another grievous account is of an elderly gentleman duped out of $250,000. Persuaded by Metals.com's false promises of assured high investment returns, he transferred nearly all his financial assets. These deceptive assurances fell flat, leaving him lacking the funds necessary for his daily needs and healthcare.
These narratives serve as stark warnings, emphasizing the caution needed while dealing with such entities in the financial realm.
Currently, considering an investment with Metals.com isn't even an option. Their website has gone dark, and the company's hands are tied to reaching out to potential clients. Still, even if circumstances shift, I'd advise caution and keep your funds away from Metals.com.
In a striking move, the Commodity Futures Trading Commission (CFTC) and a whopping 30 states initiated a lawsuit against Metals.com in September 2020. This collaborative action is unprecedented in the annals of state regulators teaming up with the CFTC, shedding light on the severity of the allegations. It's claimed that Metals.com lured investors to part with a staggering $185 million for exorbitantly priced bullion.
Digging into the details, this alleged deceit may have begun as far back as 2017. Disturbingly, out of the whopping $185 million allegedly swindled, a significant chunk—around $140 million—was sourced from individuals' retirement nest eggs.
The company's modus operandi was alarmingly manipulative. They persuaded unsuspecting folks to buy into precious metals, only to sell these metals at sky-high prices, nowhere near their genuine market value. Shockingly, they jacked up prices to almost 300% above the going rate in some instances.
What's more concerning is Metals.com's seeming penchant for targeting the vulnerable, especially seniors unfamiliar with the intricacies of precious metal investments. Tragically, many of these individuals saw almost their entire investment evaporate.
During its operational days, Metals.com showcased a variety of gold and silver bullion. Investors could pick coins or bars for individual investment or incorporate them into their Precious Metals IRA.
Some of the standout items Metals.com provided were:
Metals.com operated an online platform where folks could independently select and buy their desired products. The user-friendly platform allowed customers to select silver or gold items, adjust quantities, input delivery and payment details, and finalize their orders without mandatory interaction with an agent.
Yet, for those who preferred a personal touch, Metals.com did provide the option to purchase directly via a phone call to their representatives. These agents were well-equipped to guide setting up Precious Metals IRAs and coordinating with IRA trustee firms.
Moreover, they deliberately exploited older clientele, who weren't well-versed in the nuances of precious metal investments.
Diversifying your investments with precious metals can be smart for your financial portfolio. But it's vital to steer clear of Metals.com when considering this route. They are embroiled in lawsuits from 30 states and the Commodity Futures Trading Commission, accused of duping clients of a whopping $185 million. Rest assured, and numerous reputable firms can guide you safely and confidently in gold, silver, and other precious metal investments.