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Precious metals companies have been doing well over the past few years. As the economy gets more turbulent, more people want gold and silver. And the invention of online shopping has made it much easier to purchase precious metals without leaving the comfort of your home.
Maybe you've heard of Goldworth Financial. They're a precious metals dealer offering gold and silver -- or at least, they were. This company now seems to be permanently closed. But why? Were they a scam? And what do you need to know about investing your money in the future?
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About Goldworth Financial
When Goldworth Financial was operating, they advertised themselves as the premier sellers of silver and gold. They stated that their products were among the best in the industry and had the most competitive prices. In addition, they said they were committed to customer service.
The company aimed to reach people who were new to investing by educating them about the idea of precious metals. They had resources that explained the different aspects of the precious metals industry. In addition, they had bonuses available for people who chose to make bulk purchases.
Today, their website domain appears to be defunct on every browser. The company has also left its presence in West Hills, California, where it was headquartered. You're best off investing with a company that's still active in the industry.
The company shut down quietly. It didn't offer any press releases or explanations. That means that speculation is all that's left to us. The closure appears to be sudden, and it's hard to tell whether the company left anything behind for their customers.
In fact, some reports indicate that people with open accounts were left without answers. There's not even information about the date that the company closed its doors.
Going Out of Business
Usually when a company closes, there's some kind of explanation. They might have a sale because they're going out of business. They might shop around to see if anyone is willing to acquire them so that they don't go bankrupt. They might hold a press briefing to explain the situation.
At the very least, there are usually warning signs. Previously successful companies don't tend to disappear overnight. That's part of why people have been scratching their heads. Goldworth Financial vanished without the competition even realizing that they were shutting the doors.
And the competition would be very interested in them shutting the doors. When a company goes out of business, that's a chance for the competitors to pick up their clientele. But the competitors here didn't seem to know anything was amiss.
One of the most likely reasons that the company vanished so quickly is that it was badly managed. Not only does that mean bad things for the company's structure itself, it means bad things for the clients, too.
It's possible that the company was suffering losses because it did not have a viable business plan. Someone might have done bad math, which might then have led to dwindling resources. The company may have closed its doors because it was no longer profitable to exist.
The mismanagement must have been very serious. Several investors mentioned that they were satisfied with what the company was doing, which indicates that the company must have been making profits.
But mismanagement isn't the only potential reason that the company might have closed. Perhaps even more damning, the company might have closed after one too many complaints led to government scrutiny. If they were involved in any illegal dealings, they might have chosen to close their doors rather than face an IRS audit.
Consumers are free to file complaints through third parties like the Better Business Bureau and the Business Consumer Alliance. There are also state and federal government agencies that exist to monitor businesses. Clients can file complaints with these entities when they believe they have been wronged or scammed.
If a customer makes an allegation against a company, the company needs to be able to respond to it. They must be able to explain what happened and try to make it right. Most importantly, they must be able to show that they did not have any malicious intent.
If any particular complaint has not been answered adequately, the government might scrutinize the operations of the company. They might begin looking for systemic issues in the company's operation and management.
In addition, even if the company has not engaged in any malicious practices, open government scrutiny can be detrimental. If you're being investigated by the government for potential fraud, new investors are much less likely to pay attention to your business. You're not considered trustworthy.
There isn't any proof that Goldworth Financial was the subject of any investigation. We can't definitively say that this is what happened to the company. It's just a scenario that has caused other companies to lose business and close up shop before.
Goldworth Financial didn't offer anything that you can't find at another precious metals dealer. There are several reputable options that will teach you about investing, help you choose your assets, and put you in touch with the people needed to create a precious metals IRA.
Since the company no longer exists, it has been removed from the Better Business Bureau page. There are several online reviews that seem to indicate that the company still exists. But these don't seem to be written by actual customers.
Prior to the closure of the BBB page, the company had a good rating. Their page closure has helped to preserve the company's reputation and the reputation of everyone who worked there.
With that said, the page wasn't perfect. There were some complaints and issues. The company did respond to each of the problems, though their resolutions are hard to find now since the page is gone.
The BBB has confirmed that no legal actions have ever been taken against Goldworth Financial. It's possible for there to be an investigation without any action, but it seems likely that the government would be open about this in light of the closing. That makes the internal mismanagement more likely.
Trustlink also confirms that Goldworth Financial has gone out of business. They display a screenshot of the company website, which no longer loads now that the domain is defunct. Because the company doesn't exist anymore, all of the Trustlink reviews and ratings have been removed.
Goldworth Financial was first established in 1999 and operated out of headquarters in Woodland Hills, California. Their main point of business was in their access to foreign markets. They were able to obtain precious metals from foreign suppliers at lower than the US market price.
This also allowed them to cut out the middle man. As such, they didn't need to mark the metals up the same way their competition does. Their business had some of the most competitive prices in the market. It's possible that their prices were so low that they were selling at a loss, which would have led to detrimental effects on the finances.
They also offered fully insured storage by partnering with a variety of independent depositories. Since those depositories haven't gone out of business, anyone who invested with them should still have an open account. Your precious metals are safe in your vault.
Goldworth Financial shipped all over the United States. If your order reached a certain threshold, you were able to get your order shipped for free. Shipping was insured and packages needed to be signed for when they arrived.
This is similar to many other companies. It's common for companies to ship to the US at a flat fee, regardless of the weight of the package. If the package is worth enough, they'll waive the fee. International shipping options tend to be more complicated, since they can get pricey fast.
Is Goldworth Financial a Scam?
There's no concrete evidence that Goldworth Financial was a scam. In fact, there's a fair amount of evidence pointing to the opposite. But the company did shut its doors very quickly, which leads to some suspicion. Why didn't they explain what was happening? Why didn't they try to sell the company? Why didn't they contact any of their previous investors?
We may never know what happened to Goldworth Financial. We know that they had a solid BBB rating and made an effort to address complaints. We know that there were never any legal charges brought against them, though we don't know whether they were ever investigated for anything.
The most likely reason for the closure is financial mismanagement. The company sold their products at extremely low prices. This attracted a lot of clients because their prices were the lowest in the industry. But they might not have been generating enough profit to stay afloat, especially in the turbulent economic times we've had lately.
Fortunately, the company only functioned as a precious metals dealer. They worked with independent depositories, all of which still exist. If they had IRA services, they would have worked with a licensed custodian. Your assets are safe if you've invested here. You'll just need to find a new precious metals dealer.
There are quite a few options out there. Different precious metals dealers specialize in different things. You should look for the one that best suits your current assets and long term investment goals.
Pros & Cons of Goldworth Financial
Goldworth Financial managed to operate for more than 20 years, but they've recently closed their doors. Since they didn't make any announcements about their closure, it's difficult to say what caused it. There may have been a combination of economic factors and financial mismanagement.
When the company was working in the industry, they sold at astronomically low prices by cutting out the middle man. Their suppliers came directly from foreign markets, rather than being other dealers. This allowed them to sell products with a lower markup than the competition.
This low markup might have been part of what killed the company. The Better Business Bureau and Trustlink have both removed their pages. The company has vacated its headquarters and is no longer operating online.
If you worked with one of the depositories the company partnered with, have no fear. Those depositories are independent companies that still exist. The same is true of any custodian you've worked with if you opened a precious metals IRA.
It's strange how a company can disappear seemingly overnight. But there are other options available if you want to invest. The right precious metals dealer for you will vary depending on whether you're looking to make a personal investment or open an IRA.
You'll also want to consider how much you want to invest. What kinds of precious metals are you planning to buy? If you're going to invest in a retirement account, it's best to work with a company that specializes in this. There are strict IRS regulations you need to comply with.
Goldworth Financial offered low prices, but they aren't the only company to do that. Though their loss is unfortunate, you have other options.
Although we do think that Goldworth Financial was a solid company, they don't seem to be around any more. If you want to make an investment in precious metals, here are our recommendations:
Or you can get a free precious metals investment kit from our #1 recommended company right now!
Or, see for yourself that Goldworth Financial is no longer around...