National Gold Exchange – ring a bell? Phoenix Gold Exchange?
Turns out it was a grubby little sweat shop in Tampa. One of the principals talked a bank into loaning him $35 million which went to building a $23 million house. In 2009, the bank conducted a surprise audit and was given a fabricated financial report that didn’t check out and the company declared bankruptcy.
Shockingly, he was commingling “investors'” gold with inventory. Never ever buy gold then let the seller “keep it in their safe vault”. Never buy rare gold coins. Even legitimate dealers (if there is one) charge up to 50% “spread”. They do it on the back end. You buy an ounce of gold for $1200, then want to sell it back tomorrow – you might get an offer for $700. You protest and say “but the spot price is $1200 in the papers!”. Tha’s the wholesale price for dealers. You’re not a dealer.
Mark Yaffe is headed to federal prison for up to 5 years
Bank of America was also on the hook for over $10 million on the 25,000 square foot mansion. The home finally sold for $5.8 million to undisclosed buyers
The trend in talk radio to scare listenersinto buying survival food, gold, and identity theft “protection” is a large part of why I feel no sense of purpose in helping people listen to the shows.
If you are still convinced that you will die if you don’t own gold, at least follow this advice
If you believe society is going to disintegrate to the point that all law and order will break down and financial assets become worthless, a better investment now would be to buy a gun and learn how to use it. Then you can steal your neighbor’s food and gold, or if you find that morally objectionable – you can blow your brains out.