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Glenn Beck got it wrong. Coin Industry BBB Ratings Not Full of “F’s”
By now most people, at least in the rare coin and bullion industry, have heard or seen the Anthony Weiner - Glenn Beck - Goldline controversy play out in the print media and on Fox’s Bill O’Reilly Show.
Putting aside the political theater, I was struck by something Glenn Beck said in an exchange with Mr. O’Reilly’s on his May 21st show…….
BECK: “Goldline, yes. It’s a company I represent.”
O’REILLY: “That’s a good company, I think.”
BECK: “A+ credit rating from the Better Business Bureau. In fact, The New York Times was called on it, and they said after they saw Anthony Weiner’s report they decided to go back and look at it, and they rechecked it again. This, according to The New York Times, they have an A+ rating. They’ve retained their A+ rating in an industry that is full of F’s”
Really? The coin industry is full of “F rated” companies?
Now, I was always told that my mother drowned all of her stupid children, and having been involved in the rare coin industry for the past 20+ years, I would never suggest that there are not some bad apples in the barrel. But Beck made it sound like Goldline was an island sanctuary in a sea full of sharks. Having a distaste for hyperbole masquerading as fact, I decided to do our own research of the Better Business Bureau ratings.
Running a Search on Google for “Gold Bullion” and “Gold Coins” we pulled up the ratings for the top search results, and below are the top 20 companies and their BBB ratings:
Blanchard & Co. A+
Gainesville Coins A+
Golden Eagle A+
GoldLine International A+
Apmex A+
CMI Gold & Silver A+
American Gold Exchange A+
USGoldCoins.com A+
Swiss America Trading A+
USA Gold Coins A+
GovMint A+
Austin Rare Coins A+
Merit Financial A+
Monaco Rare Coins A
Silvertowne A
California Numismatic Investments A
Kitco A-
Auruma Advisors B+
Bullion Direct C-
Monex F
Funny, that doesn’t look like an industry full of “F’s”. Just one in 20 of the top gold bullion website search results yielded an F Grade, then a lone C-, B+ and A- and the rest A’s or A+’s. Hardly a snake pit of sleazy scheisters and thieves.
Now to be fair, a BBB rating is not a ironclad guaranty that the company is either good or bad. Often times a low rating is the result of a single complaint that was not responded to, a situation that can make an A rating nosedive to a C in the blink of an eye. The BBB has always been more concerned with responsiveness to complaints than their validity, but nonetheless it is one measure of the company’s reputation and standing.
In addition, the sites reviewed are just a small sample of all the firms selling Gold and Silver bullion coins and numismatic items, but based on the generic search terms used and the positions of these companies within the search results, these are representative of the website selections an average user would encounter first.
In reality, the Rare Coin and Bullion business is populated with hard working and honest professionals that overwhelmingly treat their customers with respect and offer a valuable product at a reasonable and fair markup over cost.
As this “drama” unfolds, I suspect that all of the parties involved will be tarnished in one way or another, but at least let’s get the facts straight. Mr. Beck’s comments, in defense of his sponsor, were just plain wrong and a mis-characterization of the industry as a whole.
Related posts:
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Charles | May 25, 2010 | Reply
The thing that concerns me the most is the comment by Rep. Weiner on the Factor that Goldline purchased their A+ rating from the Better Business Bureau.
CoinLink | May 25, 2010 | Reply
We heard Rep Weiner make that statement as well, but so far have not been able to find any independent verification of it being even remotely true. It is a serious allegation, but unsubstantiated none the less.
Val | May 25, 2010 | Reply
I would think that being able to purchase a rating from the Better Business Bureau would be a bigger story than going after Goldline.
Mark | May 25, 2010 | Reply
Do you know how much they paid? I bet it was a suitcase full of cash !
TK | May 25, 2010 | Reply
What would Rep. Weiner have us belive ? That paper dollars are better than gold ? What happened to good as gold ? Goldline has always delivered to me with no problems. A+++
Maybe Rep. Weiner should look at his states budget and stop wasting time.
Richard | May 25, 2010 | Reply
Interesting you took a small sample – just the largest companies – for this article. While Glenn Beck’s statements may have been wrong, a tiny sampling of 20 in an industry populated by thousands doesn’t exactly prove anything.
Beck’s statements are likely an off-the-cuff defense of one of his business associates, and not really much of a story even if wrong.
A congressman attacking Beck in a planned, coordinated way using false information is chilling.
mitch | May 26, 2010 | Reply
My first reaction would have been to investigate the claim by Weiner. Beck is the host of an opinion show. Weiner is an elected official directing false and fabricated allegations at a private company.
jimmie rivers | May 26, 2010 | Reply
Several comments have it exactly right. The bigger story IS that you can purchase a grade from the Better Business Bureau. In fact, according to their own literature, the only way a company can receive an “A+” grade is to buy it. For the complete story on how Goldline got it’s A+ check out http://www.bbbroundup.com/goldline.html
CoinLink | May 26, 2010 | Reply
We tracked down the LA Times article titled “Better Business Bureau grades companies on a peculiar curve” http://articles.latimes.com/2009/jan/21/business/fi-lazarus21 which we believe was the reference source Rep. Weiner (D-NY) was citing in making his assertion that “Goldline purchased their A+ Rating”
Based on the LA Times article, it certainly does not appear that the ‘Facts” support Weiners accusation, but it certainly does raise some questions as to the the reliability of the BBB rating system and if indeed it is something that consumers should put a great deal of faith in.
CoinLink | May 26, 2010 | Reply
Richard:
As stated in the article, the “small sample” was intended to review the companies that would appear in the search results from Google for a generic search run for “Gold Coins” and “Gold Bullion”. These would represent the the most likely sites anyone searching would encounter, hence those they would most likely click through to.
AC | Jun 1, 2010 | Reply
I had to chuckle when I saw the list you published above. Monaco Rare Coins has an “A” rating while Monex has an “F” rating. They are the same company located in Newport Beach, California. What does that say for the reliability of BBB ratings?
CoinLink | Jun 1, 2010 | Reply
AC – Actually they are not the same company, anymore than A-Mark and Teletrade are the same company. Many large corporations have different divisions within them with different management,products and business practices. That is why they can have separate BBB ratings.
Armil @ gold and silver bullion | Mar 22, 2011 | Reply
Coins are ideal as collectible items for several reasons. First, coins last longer than currency bills because of their metal composition. Second, the metal contained in coins usually have intrinsic value in themselves. Many coins are minted using a combination of silver, copper, nickel and even gold. Those that contain silver and gold are usually worth more than the face value, particularly if a coin is rare or old.
erin | Mar 30, 2011 | Reply
In response to the author of this article….there are many many more companies than listed above and they are not as repectible according to customer service or ratings. Those I refer to have C or worse ratings, and customer service issues abound. I agree with Beck’s brief and general comment about the many “bad”companies vs. Goldline. I have used some of the others mentioned above and are happy with them as well. I will say Goldline has more of a professional air and knowledge about them, as I have talked with reps from there, and other companies.