Coraliesbookcorner
What to you need to know before you buy
If you understand the market well and understand exactly what you need then the purchasing of gold or silver is a smooth process. However, for newbies who are looking to invest your 401K, be very careful. My advice is to do your own research before engaging with Birch Gold and make sure you do not commit to any purchase until you know exactly what you are buying and for how much. There are many variations of the same coin that hold significantly different values. Therefore make sure to identify the exact coin you are purchasing. I was mis-guided during my purchase and in hindsight I would never have invested into Silver with Birch Gold. At the time of my purchase I was a newbie to purchasing coins and I was heavily reliant upon their guidance and advice. I was advised to purchase more silver than gold due to the potential increase in value of silver in the future. I later learned this was because they make significantly higher margins on silver than in gold. In addition, I was told I would be buying the coins at the current market price. However, I later discovered that the actual market price was in fact not even close. I have spoken in detail about this with Birch Gold and through this discussion I later understood that I was given a 40% mark-up in price over what they paid for it. They claim this was due to market volatility. However, I could go out today and buy at the same price they paid for it. Don't get me wrong, I expect there to be some mark-up but 40% was not even close to the market price at the time. After more discussion with Birch Gold and clarification on the coins I purchased, their internal paperwork mentioned a 25.5% mark-up over their purchase price, but this was evidently not the case and instead I was given a mark-up of 40% of their purchase price. Please note that 401K investors will never get to see the coins physically nor are you provided with a link to it's description. I received a subsequent call from a Birch Gold representative who explained a very different way on how they calculate their mark-ups. This too was inaccurate and I thought this was very disingenuous of them to do so. Their response has been that I had signed a contract and that nothing can be done to correct the oversight. They are aware that the paperwork says one thing and my final price was something different. I have made the following suggestions to the organization and I hope this serves to help other folks who are looking to invest in precious metals. 1. Birch Gold needs to move away from 100% verbal communication with it's customers. Today everything is done over the phone and there is no visualization of exactly what you are buying and the prices they are offering. 2. To be a trusted advisor, they need to clearly explain their margins on the coins you are purchasing and why they are suggesting one coin over another. Again, this needs to be in writing. 3. They need to inform the buyer of the exact coin they are purchasing. Coins can vary wildly depending on where it was minted or if there is proof of authenticity or does it come in a presentation case. They all matter. 4. I would then advise the consumer to do your own market research on current market prices before committing to any purchases with Brich Gold. 5. They need to provide better communication to the customer on when they intend to call and "Make the Deal". If they wish to be transparent with their customers they need to start using email. 6. Customers need to double-check which organization will be managing the account. I requested a specific organization that suited my needs. However, this was later switched without my consent or being notified. I later discovered this was due to the high volume of business coming through and they were not able to set me up with the firm I requested. I hope this helps other buyers to avoid the same pitfalls. I do not wish others to lose the value of their 401K like I have.
Response from Birch Gold GroupSep 24, 2024
Hello, Thanks for allowing us the opportunity to speak with you back in July to address your concerns and ensure you had accurate information. As a friendly reminder, here are some points that we clarified during our conversation. We want to reemphasize that your purchase did not incur a 40% markup. During our call, we went into depth about our cost to obtain the metal, your unit price, and the calculation of spread. We hope this was informative. We agree, it’s essential for consumers to conduct their own research before making a purchase and to have full transparency regarding products and pricing. To ensure this, we communicated pricing clearly on at least two occasions prior to your commitment. First, in writing through our Shipping and Transaction Agreement that you signed, and then through our Voice Confirmation on a recorded line. We also have an in-depth precious metals educational segment in our process that covers the various metals available and their characteristic traits. Customers then choose what they want to purchase based on their goals and needs. Customers with precious metals in their IRA have several options for viewing their metals. This can include a visit to the depository or request photographs of their items. Education and transparency are fundamental to our process, and we look forward to continuing to be a resource for you. If you have any further questions or need assistance in the future, please don’t hesitate to reach out.