Rosland Capital Files for Bankruptcy- William Devane is Sad

from Money Metals newsletter…. excerpts:

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Since Money Metals was founded in 2010, we've warned investors that how you buy precious metals can be just as important as what you buy.

Last week's bankruptcy filing by Rosland Capital – one of the industry's most heavily advertised names, familiar through its Fox News commercials featuring William Devane – is another powerful reminder of why.

What Happened at Rosland Capital

Last week, Rosland Capital filed for Chapter 11 bankruptcy following years of mounting financial problems. According to sworn court filings submitted by the company's newly appointed Chief Restructuring Officer, Rosland dismissed nearly all its employees last month and hopes to liquidate its business under court supervision. According to the filing, some 617 customers are owed at least $60 million in undelivered orders and repurchase obligations.

For years, Rosland had achieved decent revenues. According to the bankruptcy declaration, annual sales exceeded $150 million in 2021 and remained near $100 million even through 2025. And since it often sold supposedly “rare” or special coins at extremely high markups and paid huge commissions (15% to 35%) to its high-pressure sales team, it generated gross margins ranging from approximately 18% to 9%.

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According to the bankruptcy petition, when gold continued rising in recent years, Rosland often found itself paying substantially more for replacement inventory than customers had originally paid.

This suggests Rosland didn’t even offset its price exposure through hedging or other risk-management practices.

The filing also states that the company is the subject of a Securities and Exchange Commission (SEC) investigation concerning its precious-metals IRA business and that the New York Attorney General has been investigating the company’s sales practices as well.

Perhaps the most startling statement appears later in the declaration. According to the Chief Restructuring Officer: "The Debtor no longer possesses any inventory of precious metals, coins, or bullion..." Instead, he says the company's principal remaining asset consists largely of its customer lists, marketing records, and related customer information, which it hopes to sell through the bankruptcy process.

This adds insult to injury for customers who entrusted the company not only with their purchases, but also with their personal information.

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As I’ve stated many times, there’s no reason to buy physical metals from a dealer that advertises on tv, or a dealer that pays its sales staff high commission.

And, as always …. “If you don’t hold it, you don’t own it”