The following is the transcript, word for word, of a conversation between me and a guy trying to recruit me into an obscure Gold Silver MLM company selling Gold/Silver numismatic coins (Basically, Numismatics = Collector's ). I deleted his first message sent to me...which is quite unfortunate, but the real important stuff is in my last message to him...after which he went silent lol..
I thought it would be interesting to share. Enjoy the message. TL:DR? Check the summary at the bottom.
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Silver and Gold is great.Between Stanley TheGreat and You
Aaron Loy January 5 at 3:26amBut gold and silver..as MLM...is not what it seems.
Have you done your research before joining this company of yours? Did you just join because a friend of yours did?
"Limited Edition" premiums are not guaranteed, and Gold/Silver investments are (at this moment) meant to be a hedge against fiat currencies. In other words, it is meant as a medium of exchange, which means what you want is it's real value as it will be used like cash, only heavier.
You don't transact with limited edition notes on a daily basis, do you?
Stanley TheGreat January 5 at 3:49am
Yes I did my research, and Historically, Numismatic Coins don't loose their value like fiat currencies, it is a Collectible item. If you have a problem with MLM that is fine and I understand that.
Sent via Facebook Mobile
Aaron Loy January 5 at 4:30pm
1. Is it Numismatic Coins that don't lose value? Or is it Gold/Silver that doesn't lose it's value?
The problem with numismatics is that the premium placed on it is only by those who really appreciate it's value. In other words, unless you get the right buyer, you will not get the price that you want and when the shit finally hits the economic fan, you want your silver/gold to be liquid, which what normal gold and silver is.
Also, when that happens, all these numismatic coins will start hitting the market at the same time as people attempt to convert gold/silver into cash. Numismatic premiums only come into the play when fiat currencies are doing well
Often, MLM based Numismatic dealers often over-hype the real numismatic value, unlike say, the official Olympic coins of year 19xx by the US treasury or something.
A simple video to explain - http://goldsilver.com/player/id/54/cID/4/
2. I do not have a problem with MLM. Read my message properly. MLM is one of the best industries to be in with the right products, system and leadership. Never in my message did I even hint at any biasedness against MLM.
Problem with gold silver MLM business opportunities is that there's no repeat order. You must make a new sale every time. And if you get a new consumer (not a business builder), it is very unlikely that he will make predictable repeat orders unlike consumables like health products, where even non builders will order monthly, giving you predictable income.
The thing is, why would I want to get gold/silver from MLMs when I can get them from any vendors online/offline? They're margin is only about 2-5%, which ensures that I'm buying as close to its real value as possible.
MLMs operate on products that have a minimum 200% margin. I'm not gonna pay such a high premium on something that will have difficulty maintaining such a premium and its liquidity on the open market when the market crashes, which will then defeat the purpose of buying gold/silver in the first place.
Anyway, I truly and sincerely admire your goals. Prove me and MLM legends like Randy Gage and Yanik Silver and other failed gold silver MLM companies selling numismatics like Goldquest wrong by succeeding in this one.
All the best
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Summary:Legality
Multi Level Marketing or Network Marketing companies are legitimate businesses.
High Margins
These companies must sell products with high margins in order to pay out the commissions. That's why most successful ones sell consumables like supplements and detergents.
Repeat Sales
The secret to MLM success is repeat sales. Gold Silver MLM opportunities are terrible at getting repeat sales. Also why most successful ones sell consumables
Inflated Numismatic / Collector's Value
Many of these sell 'collector's' items that's not being collected by anybody. They don't make, for example, official Olympic gold medals for a specific year. Where's the value in something that nobody's collecting?
Also, Gold and Silver are usually used as a hedge against inflation and market instability. Nobody's going to be interested in the 'pedigree' of a limited edition coin when they're trying to hedge against a crashing economy.
Numismatics that are in demand (i.e. true collector's jewellery, famous art and aged wine) are only good investments in a growing economy.
Metal Value
The inflated numismatic value and the need for high margins mean that you're paying far above the actual value of the metal, which makes it a terrible investment.
Hope this quick and dirty exchange has helped opened the eyes of some of you into the world of gold, silver, fiat currencies and non-traditional investments.
