Shocker: Buying "Commemorative Gold Coins" Not Sure-Fire Moneymaker
A company behind some of those inescapable ads hawking commemorative gold coins as good investments will reimburse customers $5 million because the coins aren't really good investments, the state's Attorney General's office announced.
U.S. Money Reserve Inc., an Austin-based commemorative coin marketer that does business as U.S. Rare Coin and Bullion Reserve, agreed to the settlement and restitution and will agree to comply with the Deceptive Trade Practices Act, the AG's office said.
"Customers who contacted U.S. Money Reserve to inquire about the gold bullion coins featured in its television advertisements encountered sales personnel who urged them to buy more expensive commemorative coins," the AG's office said.
"U.S. Money Reserve's sales team claimed that the commemorative coins would both retain and increase their value more effectively than ordinary bullion coins," they said. "However, the significantly higher prices that U.S. Money Reserve charged for its commemorative coins rendered the products so expensive that customers would not actually realize an increase in value for many years."
WHAT!?! An investment opportunity that advertises on syndicated courtroom shows and afternoon TV might not be as profitable as it seems?
We feel betrayed.
The voluntary compliance agreement causes the company "to fully reform its sales practices," the AG's office says.