Infographic by The Big Picture
Ritholtz explains it in a humongous graphic.(Click to view it full-sized.) Basically, it’s bait and switch. Customers call for bullion and get pushed into collectible gold where the spreads and commissions are much higher (plus collectible gold is much harder to sell. Bullion is easy.) Goldline also charges way for gold coins than do competitors.
Goldline International is under investigation by the Santa Monica City Attorney’s office, jointly with the Los Angeles County District Attorney’s office, as well as being the subject of a separate investigation by Congress into the possible criminal practices