What You Did Not Know About Lear Capital
Lear Capital halts in time in 2011. This is because, during the period encompassing the last three years, silver and gold have dropped in value with silver dropping at 60 percent and gold dropping at 33 percent.
The company is just interested in profit making from sales of precious metals. They will pitch to you so that you get into business with them and finally give you a two-page contract when you agree. However, they will not provide advice on tax, law, and investment. The contract also indicates that their sales representatives do not have licenses and the knowledge they have on precious metals and the marketplace for precious metals differ. This means, that the highly paid sales people do not have to know anything regarding precious metals to close you.
The price quoted to you when buying precious metals inclusive of the company’s profit margin that also encompasses the salesperson’s commission. The contract states that these profit margins differ and can be negotiated. Also, the margins vary depending on what you are buying. Therefore, if you are a Lear sales person, you will have to sell the precious metal with the highest profit margins since they give the highest commission.
Back in 2012, Evelyn Irelands, at 81 years old, called Lear Capital after hearing one of their ads on the radio. The sales person on call advised Ms. Ireland to buy rare numismatic silver and gold as this investment was superior to regular gold bullion. In 2011, Ms. Ireland sued the company for misrepresentation since her investment was worth between $179,000 and $190,000 while a similar investment in gold bullion would be worth $600,000. She sued the company and the case was settled out of court. This proves that salesperson will not sell the most lucrative precious metal but the ones with the highest profit margin.
The company has an A+ rating but however, the BBB has gotten 27 complaints and the Business Consumer Alliance has gotten 30 complaints against Lear in the last 3 years. On Yelp, Lear has a 2-star overall rating with one 5 stars, one 2 star rating and three 1 star ratings.
Many of the online complaints regard to the time the company takes to deliver coins. However, the company has a provision on its contract on this. According to the contract, after you order for precious metals, you have to deliver the payment within 5 days. Then the company has 28 days to deliver the precious metal to you. But if you pay via check, the delivery won’t be initiated until the check clears, which might take 12 days or so.
The company’s advertisements state that you will get $500 worth of free silver coins. This is false.
Some other read worthy provisions on the contract are:
-It is the client’s decision to buy or sell the precious metals and to choose the metal to buy or sell.
-Clients should be ready to hold the purchased precious metals for at least 3-5 days. However, it is preferred that clients hold the metals for 5-10 years.
-Clients should not spend more than a fifth of their investment money in precious metals.
-Precious metals do not earn revenue and are therefore inappropriate for buyers looking for current or future revenue.
It is, therefore, important to do your research before getting into any contract or investment and not to rely on information from the seller. This can be attested by the above information. We can, therefore, conclude about Lear, a gold giant, that all that glitters is not gold.
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