Goldline, LLC was a retail seller of gold and silver coins, and other precious metals for investors and collectors. Goldline traced its formation to a Deak & Co. subsidiary created in 1960, a firm that in the late 1970s was the largest storefront gold retailer and later went into bankruptcy in the 1980s. The company was later bought and sold several times in the ensuing years. The company sold its assets to A-Mark Precious Metals, Inc. in August 2017.
History
Nicholas Deak, a Hungarian immigrant, founded Deak & Co. in 1939 and served in the OSS (precursor to the CIA) during World War II. Deak & Co. specialized in foreign exchange, gold coins and bullion, and was considered a pioneer in the business.
By the early 1980s, the company was the largest retailer of gold bullion and the oldest and largest retail foreign exchange dealer in the United States. While Deak described himself as a gold bug, the company felt the strain of growing too rapidly during the gold economic bubble which burst by 1982. At that point, they planned on expanding into the wholesale market, offering services to companies instead of the public. The company was the country's leading seller of South Africa's Krugerrand before it was pressured to halt sales because of South Africa's apartheid system in 1985.
In 1984, Deak & Co. faced allegations from the President's Commission on Organized Crime that they laundered money for Latin American drug traffickers, facilitated the Lockheed bribery scandals, and smuggled currency from the Philippines. As a result, shortly thereafter, Deak & Co. declared bankruptcy in order to reorganize. In 1985, the company was purchased by a Singapore lawyer for $52 million — the most valued asset was Deak's Swiss bank. In 1986, the foreign exchange and gold business was sold to Australia's Martin Properties Ltd. (later renamed Deak Morgan) for $12 million. In the following year, the company was transferred to New Zealand based NZI and expanded its gold coin dealerships by one-third. At the same time, Deak Investor Services, Inc. changed its name to Deak International Goldline Ltd.
Due to the 1987 worldwide market crash, the company foundered, and was sold to the London-based Thomas Cook Group in August 1990 for $10–$12 million. Several months afterward, Deak International Goldline (US) Ltd. was bought by A-Mark Precious Metals Inc, a wholesaler dealer in precious metals, thereby adding a retail presence. In 1992, Deak International Goldline (US) Ltd. changed its name to Goldline International, Inc. and Mark Albarian became president. In 1994, Goldline acquired the assets of Gold & Silver Emporium, and in 1998, acquired Dreyfus Precious Metals, Inc., the precious metal brokerage and storage subsidiary of the Dreyfus Corporation.
In 2005, the A-Mark Corporation sold Goldline to three investor groups, each of which acquire minority stakes: Prudential Capital, Goldline management, and Goldline’s former chairman. Two years later, Goldline moved its headquarters and trading floor across Santa Monica, California to offices at the Water Garden complex. In 2009, CIVC, a Chicago-based private equity company, acquires controlling interest in Goldline by purchasing the stakes owned by Prudential Capital and Goldline’s former chairman. Goldline management also increases its stake. This transaction was worth over $50 million.
In August 2017, Goldline sold its assets to A-Mark Precious Metals, Inc. The newly formed company is called Goldline, Inc., a wholly owned subsidiary of A-Mark Precious Metals, Inc.
Business operations
Overview
Goldline was a retail seller of gold coins, silver coins, platinum, bullion bars and bullion coins, special collections, currencies, and other precious metals for investors and collectors. According to the Los Angeles Business Journal, in 2009, Goldline had more than 300 employees and sales revenue of $825 million which the newspaper said made it the "6th fastest growing company" in Los Angeles County, California for 2010 Goldline later sold its assets in 2017 and ceased business as a precious metals dealer.
Marketing
Goldline advertised through a variety of marketing channels including the Internet, radio, and television. Former Director of the United States Mint and Democratic Congressman Jay W. Johnson was Goldline's television spokesperson from June 2009 until his death in October of that same year. John Mercanti, the retired 12th Chief Engraver of the U.S. Mint, was also a Goldline spokesperson. Goldline's television advertising included cable networks such as CNN, CNBC, Fox News, History International and Fox Business.