Mike S.'s review of Capital Gold Group, Inc.

Capital Gold Group, Inc.

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Customer Reviews & Ratings
Complaint Posted 5/19/2016
. 1
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I got scammed.
Hi Ken, At this particular time I am not in any hurry to hand over another dime to the Capital Gold Group. I still have a bad taste in my mouth over the business I have already done with CGG. A few years ago, I was communicating with another one of your colleagues and he convinced me to move $75,000 of my retirement money into gold. I really should have run when he recommended that I move my entire retirement fund into gold, but he seemed so sure of himself and so believable, that he did convince me to at least move a significant amount (for me, $75k is a significant amount of money). He claimed that CGG charged some of the lowest fees in the business and could be trusted. Gullible me; I believed him. Also, with interest rates being held low artificially by the government, I had a feeling that the price of gold had a chance to appreciate sometime in the next couple of decades and I still feel that could be true. I figured gold could be a good way to diversify and protect against runaway inflation. Looking back, I think I made a mistake with CGG. I should have just gone with gold bullion and a company like JM Bullion or someone like that. A couple of months after I handed over my $75k to CGG, I received my first quarterly statement. I cannot recall the exact number, but that statement said that my account was valued at about $32k. CGG had recommended that I purchase American Eagle gold coins. I was quite disturbed when the account statement was only $32k. I knew there was going to be commissions involved in the transaction but CGG insisted that they charge low fees (I expected fees totaling a few thousand dollars). Over $40k in fees seemed outrageous; there had to be a mistake. When I called CGG, the gentleman told me that my coins were not worth just $32k. He said that the $32k figure was the per ounce gold price and that my coins had more value if I were to sell. Gold was around $1250 per ounce at the time of the purchase. I took his word for it; not believing that CGG would have taken so much of my money. At some point, gold rose to around $1800 per ounce and I can remember my statements reaching $42k or so. Based on what the CGG rep told me previously, I was thinking that the value of my coins was over $75k at this point. Of course, this did not last long and gold eventually dropped below the $1250 that it was at when I bought my coins. My statements dropped to around $28k. Now gold is back to about where it was when I bought my coins. The correspondence that you and I have been having lately is very disturbing to me and confirms to me that I have been ripped off. You want me to sell my gold and buy silver or platinum. I think buying silver might be a good move at this particular time. However, what you are telling me about what I can sell my gold for is not jiving with what your colleague told me in the past. I was led to believe that my gold had more value on the market than what my quarterly statements have been saying. Your numbers do not say this. The numbers you are showing me look like you would be selling my coins for a price near the per-ounce market value. Gold is about the same value now as it was when I first bought my coins. Based on what CGG told me back when I first bought my coins, the value of my coins should now be near their original value and they should be valued at a better price than my quarterly statements say. I am more certain than ever that I have been at least misled and possibly swindled. I will be investigating as to what my options are regarding this matter. I think you may have been honest with me about your recommendations, but I think there were some shady dealings going on with the CGG individual(s) I have dealt with in the past. Mike St Jean
 
 
Business's response - by Marketingon 5/23/2016
Michael, I was able to locate your specific order and would like to address your concerns. You initially purchased with CGG in June 18, 2010. The coins you purchased have two values, the gold melt down value and intrinsic value. The melt down value is the spot price of Gold that we are accustomed to seeing on the NYSE. The intrinsic value is determined by supply and demand of the metal/coin in the market. If the demand for the metal is high and the supply low the intrinsic value will rise. If there is low demand with a high supply the intrinsic value will fall. When you initially purchased although the spot price of gold was roughly $1250 the intrinsic value at that time was about twice the value of the melt down value. In addition, this was the initial time gold had broken $1200 high. It was this event that led to a strong bull market in gold. In regards to your custodian quarterly statements, they only report melt down value which is the value of the weight content of your metals you had originally seen on your quarterly statements. Most recently although the value of gold is down at $1200 the intrinsic value has fallen due to the large supply in the market with the low demand. CGG representatives have been recommending a lateral movement into silver since it is at a very low price. CGG prides itself of being transparent with its clients and I am happy to further assist you with understanding how the market changes have effected your portfolio position. Please feel free to reach out to our office directly to discuss your specific concerns. (800) 510-9594 Ext. 245. Siniva
 
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Additional Business Information
Hours   Mon 7am to 5pm PST Tue 7am to 5pm PST Wed 7am to 5pm PST Thu 7am to 5pm PST Fri 7am to 5pm PST Phone   (800) 510-9594 Address   21700 Oxnard Street, Suite 600
Woodland Hills, CA 91367
Website   http://capitalgoldgroup.com Email   pr@capitalgoldgroup.com
Contact   J. Sobry, Marketing Director Other  
 
 
 
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