ML-Implode News - An Agonizing Look At BullionDirect's Collapse [OR: WHY NOT TO BUY "PAPER GOLD" & SILVER]

Beneath the surface, however, financial documents from Bullion Direct's bankruptcy depict a startlingly different picture. James Hoeffner, an Austin attorney representing a Florida customer missing an estimated $250,000 in cash and metal from the company's vault, said Bullion Direct filed only a single income tax return, in 2010, covering the previous decade.
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Yet even if McAllister wasn't siphoning off customers' gold and silver for his own use, and was trying to prop up his failing business, "this appears to have been going on 14 years,"

Sad that people could be so critical of our fraudalicious fiat money system, but simultaneously so trusting in some Joe Random bullion dealer. It should go without saying that if you are buying precious metals as pool or depository receipts, sight unseen, you are pretty stupid. But more subtle is the point that you should not buy physical PMs from a dealer that doesn't have a sterling record of selling only what they have in inventory, and prompt shipping.

Relevant:

An Agonizing Look At BullionDirect's Collapse [OR: WHY NOT TO BUY "PAPER GOLD" & SILVER]