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Rare coin and precious metal hawker Monex, which can be seen on television soliciting investments in gold and rare coins, has apparently left many customers unhappy.  If one searches on the Internet, one can find many negative postings about the firm, which makes its money regardless of whether its customers lose theirs.  Lately, the firm has started to defend fraud claims by playing a tape recording of its customers being read boilerplate disclaimers over the telephone.  Customers who feel defrauded and file a lawsuit may be dismayed to find that the telephone sales pitch, which they relied upon in deciding to invest, was not recorded by the firm.  However, if the case otherwise has merit, this defense tactic should not prevent a just outcome, as the firm has difficulty giving a good explanation for why it only tapes material favorable for its legal defense.

If you invested in precious metals like gold or silver, or bought rare coins from Monex, you most likely lost money.  If you are wondering how it happened, the answer is that Monex, unlike other firms, pushes highly leveraged margin transactions, as high as 5 to 1, and has commissions and spreads at 5% or more.  Thus, Monex customers are often liquidated after a surprise margin a call.   Normally, a commodities firm charges a fixed commission and has no spread, so the costs of doing business with Monex is vastly higher than at most firms, and the risks much greater.

Source: http://www.timkaren.com/lawyer-attorney-1305138.html