One of our clients sent us a quote from Martin Armstrong (Armstrong Economics) and asked us what we though about it.
Here is what Armstrong wrote:
“Dealers will not ship any coins, even collector coins, to Minnesota. Why? Because the politicians have defined “bullion” as ANY COIN containing more than just 1% of gold, silver, or platinum. Bullion is defined in Minnesota Statutes §80G.01, subd. 2 and means any coin containing more than one percent by weight of silver, gold platinum, or other precious metal.
Minnesota’s law has shut down ALL COIN BUSINESS in its state, even rare collector coins. When I warn that readers should buy COINS rather than BULLION, I am deeply concerned about this hunt for money. Governments are DEAD BROKE and instead of reforming, they are without question sending us in the direction of COMMUNISM and/or a pure DARK AGE. They are destroying the world economy so rapidly all because of this Marxist theory. This is not a joke.”
There is a grain of truth in what Armstrong wrote, but let me state in the strongest of terms, he is bass-ackwards in his comments. Contrary to what Armstrong writes, Minnesota is the BEST place to do business – not a place to be worried about. The law (Statues) he refers to is designed to make it difficult to do business in Minnesota. Among other provisions, a dealer cannot hire felons, and has to post a bond. It is meant to insure that the bad apples, the snake oil boiler room operations, cannot do business here in Minnesota. Yes, it is inconvenient for us, and other dealers, and it does cost a bit of money, but in the end, it is a law that was designed TO PROTECT THE BUYER.
It has come to my attention that a large national coin dealer refuses to ship into Minnesota. The reason is because they refuse to comply with the Statutes and to post a bond.
If anything, our clients and our readers should feel more comfortable than ever before about doing business with us, due to the fact that we have passed all the requirements set up to protect the customer and are a very credible source of gold, silver and platinum.
Martin Armstrong’s comment that you should buy coins rather than bullion is ridiculous! American Eagle, Maple Leaf and other major mint coins are bullion. The only difference between a one ounce gold American Eagle and a one-ounce bullion bar is the SHAPE. If you are worried about the government getting their hands on your coins or bullion then the shape of the item is not the major concern; talk to us about how to store your gold out of the country. Many of our clients do just that. So do Andy Hoffman, Bill Holter, my son and I. It may prove to have been unnecessary, but I like to hedge all my bets. So should you.
Armstrong’s comments that the government is broke and will look wherever they can for revenue is a fact. That is one of the reasons so many people are leaving the system and moving into precious metals – and even storing them offshore.
We wrote Armstrong and admonished him for publishing this trash but to no one’s surprise, he did not reply. He had no idea about the intent of this law or its affect on the coin-buying public. It was put in place to protect Minnesota residents (from fraud), not to keep them from being able to buy product.
Frankly, I liked what he had to say more when he was publishing hand-written commentary without access to the Internet a few years back.
Comments from one of our suppliers on the Armstrong commentary
Good morning my friend. I read this garbage the other day when Andy forwarded me this piece. My first reaction was how can this information get out there without any verification from anybody in the trade. The point that creates a sense of disengagement is the fact Armstrong claims in his piece that it has killed Minnesota coin business. My reaction is that what I do know is that most of the large coin and bullion companies have decided not to register and do any Minnesota business. They have clearly made a conscious decision to eliminate doing business with Minnesota consumers. My conversation with several of the “big” guys was we feel that the new law is not fair and total BS. What I feel that our lawmakers have done is to make the decision for Minnesota consumers who they can do business with. This is not allowing a free marketplace for consumers to choose whom to do business with.
With probably near six to seven thousand entities that do what we do, only (164) entities or individuals have registered. Believe me when I say this, there are names on the list I wouldn’t touch with a ten foot pole. As you probably realize, wholesale business is exempt for dealers to do business with other dealers. This law is primarily targeted for retail consumers. The other aspect that is not discussed is the unfair disadvantage Minnesota consumers are faced with if they decide to purchase precious metals, bullion and or coins in state. It’s called sales tax!