The report examines Goldline's assertion that customers should consider buying collectable coins to protect themselves from having the government confiscate their gold. That pitch appears to be a central feature of the company's effort to persuade customers to buy coins, despite a mark-up that can run as high as 35 percent.
Company sales associates told the Consumer Reports caller that after the Great Depression, the U.S. government seized peoples' private stashes of gold, and warn that history could repeat itself. In fact, the report notes, the U.S. government paid market price, and took that unusual step to prevent people from hoarding bullion while American currency was on the gold standard, the Consumer Reports article says. An expert quoted in the report called confiscation today "a non issue."
"Are you worried about the government confiscating your coins? I'm not," Perrotta told ABC News.