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tachord

Junior Member
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Posts: 10
Reply with quote  #1 
(I am fairly certain that) Diamond State Depository is the new storage facilities location where BullionDirect had people ship their orders. If you, like myself, sold any metals and shipped them to New Castle, Delaware, it is most likely that they went to this business. The address on Google Maps and White Pages links to a location where DSD is the only business there that remotely appear to store metals, which is precisely what DSD says they do. Their website reads:

Quote:
Located directly in the heart of America’s primary business corridor, near New Castle, Delaware, International Depository Services of Delaware (IDS) is a state-of-the-art, specialized, LBMA and Intercontinental Exchange (ICE) approved, precious metals depository designed to service bullion and numismatic market participants and investors.


http://www.diamondstatedepository.com/
 
I have yet to contact them, but plan to do so tomorrow. They have emails and phone lines. I plan simply to ask them to return my shipment, on account of BD being out of communication with myself or anyone. If they will not, I will consult some lawyer friends as the best route to move forward. 

The good news is that (I think) I have found my metals. Now I need to recover them. 
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tachord

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Reply with quote  #2 
Here is an email I propose to send the company. Any thoughts or suggestions are welcomed:

Quote:
Hello,
 
My name is Thomas Achord. I shipped to your facilities two packages via USPS registered mail, which has verified you received on 19 June 2015. One package contained gld, the other slv, metals. This shipment was in conjunction with a sell transaction between myself and BullionDirect. 
 
As you may know, as of 19 June 2015 BD has suspended their operations and has ceased any and all communications with their clients. Complaints against the company have been filed to the BBB and the TX Attorney General, in efforts to obtain resolution on accounts and transactions. 
 
I am writing to your company to inquire whether it is possible 1) to prove to you of my ownership of said metals 2) such that I main obtain them from you, on account of BD's failure to fulfill its business transactions. 
 
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JG

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Posts: 991
Reply with quote  #3 
Quote:
Originally Posted by tachord
The good news is that (I think) I have found my metals. Now I need to recover them. 


Unfortunately, it's not that easy.

IDS (formerly Diamond State Depository) almost certainly has a contract with Bullion Direct. IDS cannot give you the metal stored by their client (without legal intervention). Think of it this way: what if you had metal stored at a depository, and I went there and asked for it?

Another issue is that even if IDS said "Sure, we'll give you your metal", how would they knew what metal was yours? There is nothing suggesting that BD had stored metal segregated.

Yet another issue is even if they did have metal identified as yours, what if they have 1/2 the metal they are supposed to? Who decides if you get 100% of your metal, 50%, or some other amount? IDS cannot make that decision.

However, it will be interesting to see how they respond to you (I wrote the above before seeing your next message). That brings up another thought: if you shipped your metal to BD in Delaware, does IDS have some responsibility? And if metal was received after BD suspended operations, could that be considered BD's property? And if not, what would IDS do with it?


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shannon

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Posts: 27
Reply with quote  #4 
Good luck, tachord.  This won't help me because my gold was with them long before they suspended operations, but it seems like you are in a much better position.

Keep us posted.
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jim

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Reply with quote  #5 
Quote:
I shipped to your facilities two packages via USPS registered mail, which has verified you received on 19 June 2015. One package contained gld, the other slv, metals. This shipment was in conjunction with a sell transaction between myself and BullionDirect.


Tachord, I am i a very similar situation to yours having shipped a package on June 19 and it being signed for in Delaware on the 22nd.  Have you sent your letter or gotten anywhere with Diamond State yet?
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shannon

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Posts: 27
Reply with quote  #6 
I am in total agreement here.  If IDS signed for receipt of your bullion, then they have it and I suspect would send it back.  They don't want to get pulled into all the mess by doing something illegal for a bad actor that is no longer doing business.

Let us know if you hear anything.
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tachord

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Posts: 10
Reply with quote  #7 
Quote:
Tachord, I am i a very similar situation to yours having shipped a package on June 19 and it being signed for in Delaware on the 22nd.  Have you sent your letter or gotten anywhere with Diamond State yet?


I emailed the company yesterday morning (6 June 2015) to inquire about my shipment to them. I have yet to hear back from them, but will update this thread when I do. 

In response to the admin's reply: it is likely they will no easily return my metals, but I'm trying all avenues at this point (even prayer...). I can prove to them what they have of mine by shipment receipt which I have and for which they signed, and also by screen shots of the order I placed with BD which I printed out and submitted with the physical shipment. I also assume they log the shipment in order that BD would register I made good on my end of the order (counting the bullion, etc). Anyway, as I said, I'm trying all my options here.
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nobody

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Posts: 360
Reply with quote  #8 
tachord - for your sake, I hope you succeed, but I would bet you a shiney silver proof they won't.

You shipped /bd/ your silver, by way of delivery to IDS.  They have the contract with BD, not you, and by way of their contract, accepted your freely (they didn't pay to rx) delivered goods.

They're operating a storage/security warehouse -- for them to release someone else's property to someone claiming it was theirs ---- even if your name is on the box ---- without a court order, would end their business.

I believe your bars are sitting there unopened, but here's the thing - nobody would ever use IDS again if they released a random package to a stranger.  You shipped it to bd,  and thus presumably released it to bd.  It's (in their eyes), not your property any more, it's bd's, to be processed by the terms of their agreement with bd.

The simplest fraud risk is that I ship to the warehouse, you release the cash because the warehouse said it's been rx'd.  I go to the warehouse, put up a fuss, get my items back, and now you're short both the items and cash.

That said, if IDS  _did_ do that, it could explain bd's current predicament :-).

We're now headed into the weekend, and if JG checked PACER earlier, I don't expect I'll find anything later.  Sit tight, there will be news soon.

Happy weekend,

-n
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JG

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Reply with quote  #9 
Quote:
Originally Posted by nobody
We're now headed into the weekend, and if JG checked PACER earlier, I don't expect I'll find anything later.  Sit tight, there will be news soon.


Yes, I did check a few minutes ago (prompted by your post), and nothing yet for "Bullion Direct", "Bulliondirect" (the official corporation name), or "Nucleo" (several related companies).

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shooter magaven

Senior Member
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Posts: 138
Reply with quote  #10 
So I have some(most) bullion in the "Legacy Storage " . This was stuff bought/traded on Nucleo or shipped to them back in 2010-2012.

Yet some bullion is in the "undelivered" catagory. (Nucleo trades after 2012)

How will these differ in trying to recover. Do they fall under different rules as far as proof of ownership for instance?
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JG

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Reply with quote  #11 
Quote:
Originally Posted by shooter magaven
So I have some(most) bullion in the "Legacy Storage " . This was stuff bought/traded on Nucleo or shipped to them back in 2010-2012. Yet some bullion is in the "undelivered" catagory. (Nucleo trades after 2012) How will these differ in trying to recover. Do they fall under different rules as far as proof of ownership for instance?


I wasn't aware that they had "Legacy Storage". Without further details, I would guess metal stored either way would be classified the same outside of Bullion Direct.

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shooter magaven

Senior Member
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Posts: 138
Reply with quote  #12 


QUOTE=JG]
Quote:
Originally Posted by shooter magaven
So I have some(most) bullion in the "Legacy Storage " . This was stuff bought/traded on Nucleo or shipped to them back in 2010-2012. Yet some bullion is in the "undelivered" catagory. (Nucleo trades after 2012) How will these differ in trying to recover. Do they fall under different rules as far as proof of ownership for instance?


I wasn't aware that they had "Legacy Storage". Without further details, I would guess metal stored either way would be classified the same outside of Bullion Direct.



Thanks JG,
I don't know the significance of Legacy vs any other storage. It is not something I paid for nor asked to have. I just noticed that when I clicked on "acount details". It appears that all purchase/trades I made after the notice about taking immediate delivery within 28 days, is classified as "undelivered".

Just curious about the distinction.

Facility: BD-Legacy Storage Program
Facility: BD-Undelivered
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