- Report: #718018
Complaint Review: Capital Gold Group - Woodland Hills California
Reported By:
Rod -
Cape Canaveral, Florida, United States of America
Submitted:
Updated:
-
Author Not Confirmed
Why?
Capital Gold Group
5850 Canoga Av.ste.400 Woodland Hills, 91367 California, United States of America
Phone:
800 510-9594 ex.350
Web:
www.startwithgold.com
Categories:
Business Rating:
(0)
Tell us has your experience with this business or person been good?
Capital Gold Group The Price of Gold is going through the Roof My account with Capital Gold Group is headed for the Basement ! Woodland Hills, California
In December of 2009,I decided to make an investment in Proof,American Eagle gold coins.I contacted Capital Gold Group in California and arranged for my IRA to be liquidated and moved into a self directed gold IRA,they were the sales agent for the coins abd the amount I was investing was $54,208.92
I was informed by the salesman,Mr. David Parnes that a second Company,Sterling Trust in Waco Texas would be the "custodial agent" for my gold coins and that I would be receiving quarterly account statements from Sterling.
My first quarterly statement arrived in April 2010 and covered the period of 1/31/10 - 3/31/10 and reported that my initial $54,208.92 had an "Account Value" of only $27,889.49 ? I called Capital Gold Group to inquire how it was possible that my account had lost over $26,ooo. dollars in three months?
I was informed by Mr. Parnes that I had bought my gold coins at "the Top of the market" and that the value of Proof American Eagles had gone down.I asked him how it was possible that gold bullion and gold "proof" coins were increasing in value on the "precious metals market"but my account was loosing money at an alarming rate. He told me that the federal government had recently minted new American Eagle coins and that had lowered the value of existing coins.
Over the next year,I paid various custodial fees to Sterling as I watched my account drop in value.
In June of 2010,I had taken two "distributions" from my account,the first for $542. and later $10,542.to pay medical bills I had incurred. When I got my next quarterly statement,It informed me that my account now had gone from a value of $34,369.27 to $19,689.29
I once again called Mr. Parnes to ask how after taking a $10,542. distribution my account how had it gone from $34,369.27 to just $19,689.29 lwhere was the missing $4,137.98 ?
Now with my last statement in hand covering the period of 9/30/10 - 12/31/10 my account value is showing at $17,928. ? In the last year gold has moved to an all time high of over $1,400. per oz.on the world market,yet my account continues to lose thousands of dollars.When I asked Mr. Parnes what I had paid for the original purchase of my coins,I was told $3,202.50 and what was the price Capital gold group sold my coins for when I took the $10,542. distribution ? I was told " around $1,800.per oz.
At this rate,I'm going to owe Capital Gold Group money in a short time...I believe that I've been swindled big time.
3 Updates & Rebuttals
Rod Crews
Cape Canaveral,Florida,
United States of America
All that Glitters...is not Gold
#2Author of original report
Thu, April 21, 2011
** Recently,I filed a Rip Off report,detailing my account history with Capital Gold Group of Woodland Hills ,California.I have reviewed my comments and wish to add that in all fairness,I do not hold Mr. David Parnes personally responsible for any market conditions beyond his control.
As with any investment,one should never get involved in a market or investment they know very little about. It has been expensive for me to discover that,"all that glitters" is not gold.
Flynrider
Phoenix,Arizona,
USA
Investing without doing homework.
#3Consumer Comment
Sat, April 16, 2011
From your report it looks like you had very little understanding about what you were investing in. In any investment it pays to know what sort of a commision you're paying for a product, as well as its common market value before you buy.
I don't know if you were ripped off, but to have lost that much while the price of gold was climbin steadily, you would have had to have been paying some seriously high commissions to still be on the downside. Your choice of "proof" coins over standard bullion would indicate that this may be the case. Proofs are more a collectible investment rather than a pure metal investment and the overhead (price above spot) tends to be about 5 times more than regular bullion Eagles.
An accounting of what you paid for each coin (including commissions) and what they were sold for (minus commissions) should show you where your money went. There are numerous sites on the web that will give you the spot price of gold on any of your buy and sell dates.
" reported that my initial $54,208.92 had an "Account Value" of only $27,889.49 ?"
This is where you should look for commissions. That's nearly a 50% drop when the spot price was down less than 10% from its highest point in December '09.
". He told me that the federal government had recently minted new American Eagle coins and that had lowered the value of existing coins."
The U.S. Mint puts out new coins (including proofs) every year. That's their business. The value of previous years coins are not significantly affected.
Jim
Millbrook,Alabama,
U.S.A.
Sounds to me that you need to get your gold OUT before it's all gone.
#4Consumer Comment
Fri, April 15, 2011
They're f**king you.
