Rick
Castle Rock,#2Consumer Comment
Thu, April 28, 2011
I just have a few questions regarding this complaint. I am not an "investor" myself, just someone who has heard the radio ads a thousand times.
1. Why was Mr. Rockwell pushed into the "numismatic" gold coins rather than bullion, which is apparently what he wanted to purchase? There is a big difference, most notably the objective value of the gold. In general, buillion has a very objective value based entirely on the weight of the gold and the spot market price on a given day. For example, gold is at $1,490 today? Fine, then that ounce of 24kt bullion you have is worth...about $1,490. On the other hand that 1906 double eagle $20 piece you have is worth... well who knows, it depends on the grade, quality etc. could be $1440, $1540, $1840. In other words, its value is totally subjective, apart from the fact that objectively it's worth at least 96.75% of the spot price because that's the real metal content. But there's that vague "collector's premium" that really jacks up the price after which it comes down to being worth what someone else is willing to pay.
2. The radio ads feature Kevin speculating on the price of gold, how high it could go, etc. Okay, fine - so far so good. He's obviously referring to the SPOT price when he's throwing out numbers like $1300 an ounce, $1500 an ounce and so on. Yet the last thing Lear wants to do, apparently, is sell bullion, whose value is based on the metal itself where the per-ounce prices Kevin talks about are meaningful. They seem to only be interested in selling collector's coins that incidentally happen to be made of gold. Coins whose perceived value have little to do with the SPOT price.
3. Who the heck is "Larry"? What is Larry's last name? What else does Larry do? Is Larry a famous person? A celebrity, maybe? A talk show host? If you've not heard the ads, Larry interviews Kevin, and Kevin calls him "Larry" several times. The point is, why does Kevin bother to call him "Larry" if Larry is a total nobody? Larry does not APPEAR to be a person that anyone other than Larry's wife would recognize. Larry uses language like "on this show" (what exactly is Larry's show?), and "we've interviewed" (who is "we"? Larry and who else?). Why does Kevin pretend that Larry is somebody important, when it seems that Larry (which may or may not be his real name) is just a voiceover actor who is hired for no other reason than to pretend to interview Kevin?
Manager of Customer Relations
Los Angeles,#3UPDATE Employee
Thu, March 24, 2011
On February 9, 2011 Mr. Rockwell responded to an ad and requested gold information. Lear Capital sent Mr. Rockwell the information as requested, then Lear Capital contacted Mr. Rockwell to discuss a metals purchase.
On March 3, 2011, Mr. Rockwell entered into a Verbal Confirmation recording with intentions to secure a purchase. On the Verbal Confirmation several questions were asked as are with every Verbal Confirmation Lear Capital records on behalf of each client. The initial questions reference having the correct name on the account, address and email address. Then there's a series of questions to initiate the purchase. The first question being, Do you understand that numismatic coins are a long-term investment and should be held for at least 3 to 5 years? And Mr. Rockwell responded, Yes. Another question asked was, Do you understand that our Numismatic cost to ask spread currently averages 25% and that there is a risk of market fluctuation. Mr. Rockwell responded, Yes.. And the final question was, The information package you received includes a transaction agreement. You must read the agreement and then sign and date it and send it back to us along with your funds to open your account. Do you agree to this?, and Mr. Rockwell responded, Yes..
The transaction agreement clearly outlines in bold our fees on the first page. Mr. Rockwell signed the agreement on March 2, 2011. This transaction agreement was included in the information package Lear Capital sent to Mr. Rockwell on February 9, 2011. Almost a month prior to his purchase! This is not a complicated agreement and is only two pages long!
After these questions, Mr. Rockwell's purchased was specifically outlined to him on the recorded line, so that pricing could be locked in. Each item was detailed with an explaining of the type of the metal, quantity, and price, along with a total.
On March 14, 2011, Mr. Rockwell was emailed this Verbal Confirmation. Mr. Rockwell agreed that he did indeed agree to the terms of the purchase.
Mr. Rockwell mentions a 6.5% commission in his complaint, however the Verbal Confirmation clearly states the, ...spread currently averages 25%.... On March 17, 2011, Mr. Rockwell was asked why he didn't stop the recording and inquire about any perceived discrepancy and Mr. Rockwell didn't give an answer.
Mr. Rockwell claims in his complaint that he's down $10,000.00. This is not the case. Mr. Rockwell is down $6,343.00 as of March 24, 2011.
Mr. Rockwell is welcomed to call Lear Capital anytime regarding the status of his purchase.