14 Responses to “Are American Eagle Gold Coins from Blanchard and Co. a Scam?”

1. Chris Dowd
   June 24th, 2008 @ 1:53 pm

   I don’t see the “scam”. Gold goes up and gold goes down. Generally gold investors are not in it to make a pile of money but simply as insurance- a hedge against fiat currency. People who hold a substantial amount of gold generally don’t look at the daily fiat currency price of gold. Gold has intrinsic value regardless of its price in paper currency.

   That is the point of holding it. Sure- some people want to speculate on gold in boom times and think they are going to strike it rich- but they are idiots.

   Buying 500 bucks worth of gold a year isn’t a bad idea. It comforts a lot of people to know they have something of real value if the proverbial feces hit the fan.

   Got more money to play with? Then buy more.

   And of course Blanchard would buy back the coins at the current market value? Does that really have to be announced on a radio ad in which they pay by the word? Reminds me of that old Saturday night live skit about a bank that only makes change. When asked how they make money- the announcer says “volume”. How do you think Blanchard makes money?

2. Joe
   June 24th, 2008 @ 3:57 pm

   Thanks for stopping by Chris!

   You make many great points.

   I think Blanchard makes money by selling gold coins to interested consumers, and if said consumer buys gold $800 an ounce only to have it fall to $500 by the time they sell it back to Blanchard and Co., then viva la capitalism. I don’t begrudge them their profit. I just think people are getting caught up into riding the gold bull and Blanchard may be taking advantage of them.

   I want to be clear that I don’t think Blanchard is running a scam per se, but the tone of their radio ad is definitely “scammy.” That’s why I asked the question, “is it a scam?”

   I see many people who think “intrinsic value” means it’s worth what they pay for it and will only increase in value from there. They view intrinsic value as insurance against loss, and that simply isn’t true. The commercial builds off this belief and strongly implies that the value of gold only increases and that their gold coins are a risk free investment. In fact, they never once mention the word “risk.”

   Buying gold as an inflation hedge is a sound strategy, as we’ve seen over the last 3 - 5 years, but I think too many people have bought into the notion that intrinsic value
   will keep them from losing their shirts speculating on gold.

   If people want something of some value to have and to hold, and they like the sheer beauty and artistry of gold or gold coins, then by all means buy some - just don’t do it to make a killing in the gold market.

   If Blanchard had highlighted that aspect in their radio ad, I wouldn’t have had a post. But as it was, they hyped investing in the gold bull instead.

3. Rosland Capital - U. S. Gold Eagle Coins in Your IRA. | Simple Debt-Free Finance
   January 12th, 2009 @ 9:32 am

   [...] while back, I posted my thoughts on the American Eagle gold coins from Blanchard and Company radio ad I was hearing daily. Well, now it seems like every time I turn on the television, I see a [...]

4. Gerry Dalton
   May 15th, 2009 @ 2:12 pm

   WHOA. Blanchard will “only” buy your gold back at “current market prices”and this is a SCAM?!? When you sell stock you bought from Fidelity that has fallen since, do they pay you “current market value” or do they reimburse your loss?? If your gold RISES in price, then Blanchard buys (and gladly) at the higher price. Just as Fidelity buys your risen stock at the higher prices. That’s how free markets work..THANK GOD. Gold peaked in early 1980 after skyrocketing in the 70s and dropped precipitously from that peak throughout the 80’s as inflation was brought under control. (I presume mentioning the 90’s positively and not the 80’s when growth, lowering inflation, falling gold prices all occurred big time was merely an oversight not an idealogical evasion). Your charts are indeed accurate for the truncated periods they cover. They show that, yeah, gold was a bad investment for years but a stellar one for the most recent five years (at least an intermediate time frame). Can it turn on a dime and fall off a cliff, sure- as did Warren Buffet’s Berkshire Hathaway. However, what has proven to be the greatest threat to individual wealth historically? The debasing of the currency. By government paper money at an insane pace, they’re lowering the value of ALL dollars, we are doing this NOW. (The last administration was pretty good at this silent confiscation of wealth, also). If monetary policy makes dollars drastically head south,then hard currency alternatives have to rise in dollar terms. This is a mathematical FACT. Therefore, no smoke and mirror “bubble”. I realize that contrarian investing often has merit but I see no hand brake on the horizon to stop this policy of transferring private wealth to public hands, so I anticipate gold continuing its steep rise. This is a trend not some ten-day aberration. The only other thing to worry about for potential gold holders (very highly improbable but NOT impossible) is that the prez emulates his idol, FDR, and imposes a clone of the jack-booted executive order to confiscate gold held by individual citizens. By the way, for full disclosure, I hold gold stocks not physical gold (at the moment anyway) and when I do buy, I’ll stack up the Blanchard (can’t find dissatisfied customers despite extensive googling) and their competitors before deciding where to buy it.

5. Joe
   May 15th, 2009 @ 2:23 pm

   @Gerry,

   No, Blanchard buying your gold back at current market value is not a scam. Blanchard spinning Gold as a “safe” investment is.

   What would you say to someone telling you that stocks are a safe investment and, as a means of proof, offering to buy back your share at any time at market value?

   I’d call that dishonest, at the very least.

6. Alex Laudner
   June 7th, 2009 @ 9:18 pm

   Joe,

   Unlike anyone else on this thread, I HAVE had bullion transactions with Blanchard. They executed in a timely fashion and (my only complaint)is that they send a ton of brochures on other products to my mailbox. So does Charles Schwab, Vanguard and other firms I deal with, I might add.
   As to the other issue, I find it a “non-starter”. Any adverts from the firm seem to stress gold as a haven of safety in a volatile financial enviroment, not something that can’t go down like other financial instruments. Do they spend much time telling you it can fall sharply in alternate enviroments. Nope-but who does? Before throwing around terms like “scam” and “dishonest”, I suggest you put other financial institutions to the same test. Like banks, who after the stock market plunge, touted how ABSOLUTELY safe, FDIC insured etc. savings accounts and CDs are. Yet, look at today with the gov’t funding “stimulus” by running the printing presses on those same dollar bills

   I’ve had a trip to Australia planned for months,a lifetime dream. In the last 90 DAYS, the dollar has fallen 25% vs world currencies!My lodging and dining expenses will now be through the roof.Did the local bank say poor economic policy can savage the worth of those dollars in savings accounts that they touted as ultra safe? They did like hell. The difference I see is that my tax dollar didn’t have to bail out Blanchard.

7. Gold
   July 31st, 2009 @ 1:21 am

   I dont think there is a scam, I just want to say that the price of gold is also affected by the market condition, whatever investment is that, it will definitely affected by different factors. But based on the charts that you provided, the gold is performing well in the industry. So, I think its good to invest for this year.

8. Stephen Voith
   August 31st, 2009 @ 11:42 am

   Hi, i’d like to point out that i have purchased gold elsewhere (not from Blanchard), BUT even the folks i did purchase from had positive things to say about Blanchard, which in the Gold market is VERY uncommon! And the Rep from Blanchard whom i’ve discussed buying/selling Gold has always been very honest and admits openly that Gold has risk and can go South in the twinkling of an eye. But, in the current climate of $trillions$ being added worldwide to the currency mkt., it does seem very doubtful that Gold will suddenly plummet, esp. because there are such an excess number of dollars and other fiat currencies (seemingly unlimited in number) vying for the proportionately limited amount of physical Gold.

9. dan
   November 3rd, 2009 @ 1:44 pm

   who actually knows if they buy back bullion at real time market price even ifsold to you for a loss ! this is the question .do they reserve the right to deny any more gold due to over stock and how could they assure that ?

10. Bruce
    December 8th, 2009 @ 10:46 am

    In response to Blanchard or any other dealer buying back gold. They are in the business of buying and selling. In order for them to sell gold they need inventory. They have to constantly buy gold to meet demand. The law of supply and demand works when they have too much stock. They will lower their spread which is the only way they make a profit. The most important thing to look at is does the merchant deliver the product as promised.

11. John G.
    December 10th, 2009 @ 4:00 am

    Paul Cohen, who featured American Sierra Gold back on 11/05/09 has just issued a research recommendation for VHGI Gold. For the full report please visit Cohen Independent Research Group’s Website http://www.grassrootsrd.com , or visit VHGI Gold’s website, http://www.vhgigold.com.

12. gold coins
    January 1st, 2010 @ 4:18 am

    if your worried about it being a scam why dont you look up a gold bullion dealer in your local area there should be plenty.

13. Michael Kafir
    January 21st, 2010 @ 3:10 pm

    What a pathetic WHINER!!! I have personally purchased coins from Blanchard for five years and found them to be reputable and honest, which is more than I can say about the Federal government and its “transparent president”.

    If you don’t like Blanchard’s commercials,
    1) You can turn them off 2) Nobody is forcing you to buy gold from Blanchard and 3)Man up and quit your whining. This is still a CAPITALIST society and “profit” isn’t a dirty word, unless you are a Socialist lap dog!

    MY gold profits have averaged 600 percent over the past five years; How’s that HOAX -and-Change with its 1 percent intertest rates doing for you?

14. Joe
    January 21st, 2010 @ 8:04 pm

    WOW! You guys need to learn to read the whole post…

    I have nothing against making a profit, and I said as much in the post.

    I also said that what I have a problem with is the way in which they portray their buy back program as though it’s impossible to lose money.

    There’s no denying that gold has had a terrific run, but there is also no denying that you can lose money on the deal.

Leave a Reply