Here’s the catch: Customers looking to cash in by investing in gold coins and precious metal products are left in the lurch. Many investors nationwide paid thousands of dollars for coins to The
Tulving Company, Inc. (“Tulving”) and never received anything. To make matters worse, not only have consumers lost their money, but Tulving filed for Chapter 11 bankruptcy on March 10, 2014. No doubt some of these investors feel like they purchased fool’s
gold instead of the precious metals they sought to invest in.
Tulving, an Orange County business, is allegedly one of the largest retail precious metals dealers, with some 35,000 estimated customers and approximately 200,000 orders taken since 1995. Early investors became repeat customers because of the company’s initial
low prices and delivery of orders. However, Tulving’s reputation has been soured by the numerous recent complaints that they took investors’ money and provided nothing but empty promises.
The company’s former website boasted, “Free, faster overnight shipping of all products at low prices" and stated, “Every order is shipped UPS Next Day Air Saver for free.” While early customers appear to have received their orders within one to two weeks
from the time they wired their funds, some of the more recent customers waited several months to finally get their order, while others received nothing at all. Business Consumer Alliance has processed over 300
complaints against Tulving since 2013, with the majority of the allegations being non-delivery and refund issues.
For a while, complainants saw light at the end of the tunnel. The company would respond to complaints by providing a future delivery date. Unfortunately, the light grew dim when those dates came and went with no delivery or further information when investors
would receive their order or obtain a refund. Then the company stopped responding altogether, not just to complaints filed, but also to calls and contacts.
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local newspaper reports that Tulving is under investigation by the Secret Service, the U.S. Attorney General, and other government agencies. Tulving reportedly owes one to ten million dollars to as many as 49 creditors, according to a bankruptcy document
filed, and authorities have stated the business defrauded clients of more than $40 million dollars. Class action lawsuits have also been filed against the business.
Hannes Tulving, Jr. (“Hannes”), the owner of Tulving, is no stranger to government agency investigations.
In 1992, a $1.3 million dollar settlement agreement was reached with the Federal Trade Commission (“FTC”). At the time, the FTC charged Hannes and his company, Hannes Tulving Rare Coin Investments, with overpricing coins and failing to honor guarantees.
While it’s yet to be seen what becomes of the investigations and lawsuits that seem to be mounting against Tulving, it is certain that careful consideration needs to be taken anytime you are looking to make an investment.
Kim’s advice: Buying rare coins, or bullion coins, can be risky because of limited consumer protection standards. Before making a buying decision, consider the following information:
- Remember that coin investments carry no guarantee of a profit and don’t pay interest or dividends. These types of investments don’t appreciate rapidly and investors should expect to hold on to their investment for several years before possibly realizing
a profit.
- Be cautious of unsolicited phone calls or offers made over the Internet through pop-up ads, in newspaper advertisements, and on radio and television ads. Also, avoid falling for high-pressure sales tactics.
- Research the business by obtaining a
reliability report from Business Consumer Alliance. Also, conduct an online search for reviews or complaints about the business and check with your state’s Attorney General or the Federal
Trade Commission (“FTC”) for any enforcement actions or information they may have on the business.
- Investigate how long the company has been in business and ask for references from previous purchasers.
- Review the purchase agreement or contract prior to making deposits or paying any monies. Check the agreement for refund, exchange, and cancellation policies, plus a buy-back option in the event you need to liquidate.
- Review the shipping terms to make sure they are compliant with Commodity Futures Trading Commission (“CFTC”) regulations. The CFTC’s Commodity Exchange Act requires the delivery
of commodities within 28 days. The seller must physically deliver the entire purchased commodity directly to the buyer or a depository that does not belong to the seller or any of the seller’s affiliates.
- Contact the CFTC at (866) 366-2382 or the National Futures Association at (312) 781-1300 to check
the registration status, background, and any disciplinary history of a broker or firm.
- If you have made a purchase and have yet to receive your order, or you are experiencing some other problem with a company, file a complaint with Business Consumer Alliance.
Investing in precious metals is highly risky so it is important that anyone interested in pursuing investments arm themselves with as much information as possible. For more information on Gold Investments, check out our Resource Guide on “Investing
in Gold” found on our website.
About the Author:
Kim Burge is Business Consumer Alliance’s Vice President of Business Practice. For media inquiries, Kim can be reached by phone at (909) 835-6094.