Holey Dollar compo fight https://au.news.yahoo.com/thewest/a/23045138/compo-for-inflated-coin-valuation/ The investor has done quite well considering the way the market has gone
Well there you go. This is the only article I have read on this story and I am sure there is much missed out on both sides but on the face of it... Business man didn't do his due dilligence, belived that he would make an easy 20% in two years for doing nothing, and knowing nothing about numismatics, trusted a retailer with a lot of money. Sales man made claims and offers he couldn't back up in order to pocket $370,000. Greed all round. Doesn't make the hobby look too good though.
Hmm the Rare Coin Company... Isn't this the coin company that conned people into buying way overpriced coins?
Well, they were overpriced compared to other coin shops, but you don't mind paying a bit more if you are guaranteed to be able to sell it back to them for more money than you paid for it. That I think is where they became unstuck because when people saw the market going down they returned the coins and the company didn't have enough new money coming in to buy back all the coins.
Their coins and notes were massively overpriced and sold to farmers with SMSF. When they ran out of farmers to sell to or too many wanted to cash out the business folded. If the coins had of been fair market value it wouldnt have been a problem as they could have sold them and paid their bills. As they were over valued by their 'in house experts' when it did come time to sell asset X for price Y nobody would pay anything close to that and so debts were bigger then assets.
Noooo!!!!!!!!!! Regulation will just put all the prices up. People commiting fraud will carry on committing fraud, there are already laws to prevent that and they were used in this case. People acting stupid will carry on acting stupidly, sadly, no laws exist for that, you can't regulate stupid. Plus if a business overcharges then everyone is entitled to go elsewhere and make their purchases. Seriously, if you think a salesman can predict the future and guarantee a 20% return then you probably won't be holding your money for long anyway, first magic bean seller who comes along will fleece them. Was this mob a member of ANDA?
I believe they were. I know coin dealers who would travel to WA just to sell "the man in the west" coins and notes to. Typically for twice the items purchased value and then 'the man' would double it again. Yes he sold to farmers but miners too! Lots of them. Most lessons get learnt the hard way.
