About one year ago, in January, I contacted Sterling Trust Company about investing in precious metals, that is, gold and silver. They made the arrangement with Fidelity to transfer investment at Fidelity into a Gold IRA.
They said they would purchase the metals and asked if I wanted it shipped to me (whereupon I would pay taxes on it) or have them store it (where no taxes would be paid). I opted for them to store it (at $100/year). I did not direct them to purchase the metals from any particular company, although they may have mentioned Superior Gold. As I had no experience in purchasing a large amount of gold in this way, I trusted them to make the purchase from a reputable company.
I received quarterly statements from Sterling Trust showing a balance in my account. I contacted Sterling Trust to draw out a portion of the money I had entrusted to them, only to find out that they never received any metal from Superior Gold. They said I would have to contact Superior Gold.
Superior Gold, as it turns out, is not answering their phone. The call is redirected, followed by a busy signal. Sterling Trust's attitude is that it's my responsibility to contact Superior Gold, because it was a "directed purchase"directed by me. But I did not direct them to make the purchase from any particular supplier; I only agreed with what they said they would do.
Of course, according to Sterling Trust, they have done nothing wrong. They are just the "middle man" with snow-white hands. However, I find it unusual that they charged me $100 last year to store the metals, but they never received the metals, they never bothered to tell me they did not receive the metals, and I have not been refunded the $100 they charged to store metal they did not have. And they wrote to me saying they would be charging $125 in 2010for metal they do not have?
The person who took my call hesitated and could not give a direct answer to anything I asked. She just kept circling the wagons and saying it was a "directed purchase" and she couldn't tell me anything else. It looks like Sterling Trust was aware or is now aware of Superior Gold's failure to deliver (while Superior sails off in the sunset with all my investment) and has thoroughly covered their own ass from liability. However, from where I sit, they are complicit in what appears to be a scam bu Superior Gold. They are still holding $100 of my money under false pretense.
One thing is certain about Sterling Trust Company, they do not claim any responsibility or loyalty to their clients. Whether they are legitimate or not, it is clear that they will show you their covered backside if things don't go as they should. This is not a company upon which you want to rely.
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