We've uncovered information raising the possibility another ugly blow up may be coming in the retail precious metals industry...
A somewhat known online bullion dealer recently had its BBB accreditation revoked amid a pattern of complaints alleging 1-3 month delivery delays, poor communication, and other service issues. (There are no reports of actual financial losses.)
The retail bullion market is relatively slow at present, with inventory highly plentiful. That's also why premiums today are low compared to most of 2020-2023.
As such, there is simply no good excuse for multi-week shipping delays after a customer's payment has cleared.
Regardless of market conditions, there is NEVER a reasonable excuse for multi-month shipping delays.
As a general matter, if lengthy shipping delays are occurring right now, it could "just" mean a company is poorly managed. But there is a strong possibility it could be financially underwater, using new customer payments to make good on prior orders (akin to a Ponzi scheme).
In the latter scenario, the lower the sales volume, the longer the delays will typically become. Such a dealer might then resort to dropping their premiums to super-low levels in a desperate attempt to stimulate transaction volume and keep the money flowing in (to meet prior unfulfilled orders), even as business losses and working capital deficits increase.
We won't "name names" here today, but we once again implore metals investors to stay highly alert to the many red flags we've written about time and time again over the years.
It's important to do business with a trusted, reliable bullion dealer – while also avoiding any dealer with a pushy sales team that tries to upsell you on supposedly rare, limited-edition, proof, and other high-premium coins.
You can certainly trust Money Metals – with our 14-year track-record as a family-owned business, A+ BBB rating, and Best Overall U.S Dealer accolades from Investopedia. We are on a mission not only to provide great value and services to our customers, but also to educate the public and policymakers about the importance of sound money.
Even if you do business elsewhere, though, PLEASE be alert for the red flags we've repeatedly outlined. It's distressing when we see people get abused, and it erodes public trust in our vital industry.
