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Sunday, 28 August 2011

Cold calls: excellent advice from Tony Levene (lovemoney.com)

'Never, never, ever respond to anyone who phones you with an investment proposition of any sort.





It does not matter what they say! Real financial advisers do not and are not allowed to do this.





Now, if everyone were to remember that, then no one would lose a penny to fraudsters like the Wilmots.'




27 comments:

  1. Absolute Rubbish, in the US you are allowed to call the only difference is that you get a licence to do so....

    people like Levene seem to have a pole up the rear end when it comes to cold calling, how else are you supposed to generate business

    What a bunch of Jokers ban it in the UK but you cannot prevent people from abroad doing it into the UK make it legal and regulate it

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  2. Anon. I'm sure Tony Levene is commenting about the situation in the UK. Obviously regulations vary from country to country.

    However, irrespective of country I would not consider buying anything from a cold call, especially an investment offer.

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  3. Dear Jim

    You may top people in the UK cold calling but will have it near impossible from people outside the UK cold calling the UK, if you charge a licence fee and regulate it, that is much easier and allow companies in the UK to legally do it

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  4. Anon. Although I object to cold calling, particularly in relation to investments, I would go so far as advocating executing them!

    The crux here is not what I think but a requirement that financial advisers are not allowed to cold call in the UK.

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  5. I was recently cold called by Crimson Fine Wines with an investment opportunity: As they're not on any of your lists, I'm tempted. I've no problem with cold calls if the investment makes me money. And I wouldn't have known about wine investment if they hadn't called me in the first place.

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  6. Anon. I have heard of Crimson Wines, a new company. I would want to know more about this company before buying from them. I would be interested to know what wines they have suggested and at what price. Thanks Jim

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    1. I have received a call from Crimson Wines too and agreed for them to send me a brochure. This is the first time I have heard of wine investment.

      There was no list of wines supplied but they did say that for new investors, they suggest investing around £3000 minimum up to £25000. When I received another call from them, I said I did not have that kind of money. He came up with another price of around £1500 for a wine of 2008 vintage (I cannot remember the name of the wine).

      In their brochure they quote their charges as " All purchases include a static service charge of 15%, 5 years storage at London City Bond and 5 years insurance (renewable from year to year)."

      I have read that you are not keen on any company that claims wines are free from Capital Gains Tax. They certainly claim that in their glossy brochure because UK tax law considers wine a "wasting asset".

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  7. I recently purchased a case of 2009 Pontet Canet from Crimson Fine Wines and found them to be neither the cheapest nor the most expensive around. I too had never heard of the wine market but they were very helpful and not at all pushy. I decided to go with them as they opened me a private account at London city bonds which noone has access to apart from me where my wine will be stored for up to 5 years paid for by them. I was indeed charged 15% but i would rather that than be charged a percentage at the other end when i sell my wine and have hopefully made some profit i appreciate every company needs to make money somehow. Wine is actually free from Capital gains tax as it is kept in bond from what i understand and has a shelf life so profits should be tax free. From what I understand you only pay taxes if you take the wine out to drink. So far I have not had any problems with Crimson fine wines. Hope this is helpful.

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    1. "Neither the cheapest, nor the most expensive"? "I would rather that than be charged a percentage at the other end..."? This sounds very much like the mantra the sales staff are told during training to repeat during a sales pitch! Are you in any way connected to Crimson Fine Wines?
      Why would a reputable company open so many websites (purporting to be impartial and independent) praising Crimson Fine Wines from a "neutral" standpoint?

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    2. I see what you mean:-

      investinfinwines.com
      ultimatewineinvestment.com
      londonwineinvestment.com

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  8. Anon: 'Wine is actually free from Capital gains tax as it is kept in bond'. Sorry this is not correct. Most wine is free of capital gains tax but wine that has an expected life of more than 50 years is subject to capital gains tax on profits made if you come to sell irrespective of whether it is in bond or not.

    Wine is also subject to inheritance tax.

    'I was indeed charged 15% but i would rather that than be charged a percentage at the other end when i sell my wine and have hopefully made some profit.'

    You have to assume that the company that charges an upfront fee is still in business when you want to sell...

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  9. Moreover, whilst wine is exempt from CGT you would almost certainly be trading in wine, and so subject to income tax and national insurance.

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  10. Anon – Thanks but once again wine is not invariably free of capital gains tax. Liability to income tax depends on the frequency of trading.

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  11. JIm,you make this sound a tad confusing for the average man, it does not depend on the frequency of trading at all, i mean you buy a case of wine then you sell a case of wine, why then would you buy it back. You only ever make two decisions on any one case of wine when to buy and when to sell SIMPLE and as long as you trade any one case within a fifty year time period from the day purchased you ARE free from CGT....

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  12. I Notice Crimson Fine Wines aren't on your "I wouldn't Buy Wines" List - even though they charge an upfront commission. Why not?

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  13. Jim, what details? The above posts show clearly that they charge an upfront fee of 15% - not something you approve of - so why are they not on your list of companies you would not buy wine from? And if you don't believe the posts, why not ask them yourself?

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  14. Anon. You are correct I would not buy from Crimson Fine Wines Ltd due to upfront commission and incorrect tax and consumer protection claims.

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  15. They flog diamonds too ...

    http://www.crimsonfinediamonds.com/companyprofile.html

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  16. Genesis Rare Diamonds also uses the same address.

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  17. They appear to all be backed by the same Canadian set up who run Genesis Rare Diamonds in Toronto!

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  18. Crimson is run by some Canadian guys, who own genesis rare diamonds, look them up...

    you get a diamond...is it worth the money you paid....i doubt it, like investing in rare earth metals- big companies arent interested in buying small baskets of this stuff....who you gona sell your diamond to if they cant,wont etc....avoid the hasstle in my opinion. someones getting rich...is it you or their brokers

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  19. For anyone seeking further information on the man behind this operation see: Momentas Corporation and/or Howard Rash a.k.a. Howard Rush!

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  20. Whilst on the subject of Mr Rash and the beneficial owners of Crimson, see also Graycliff Resources and Discovery Biotech, two other companies, in his native Canada, good old Howard Rush (nee Rash) has had a hand in!

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  21. Jim, interesting data. I ended up here after getting a brochure from Crimson about wine investment. Their literature 'implies' returns of 136% to over 1000% over a 7 year + period. I would suggest anyone looking at this look at this article: http://www.bbc.co.uk/news/business-17703269 where it is estimated that around 50 UK based wine investment companies have collapsed in the 2008 to 2012 period.
    So, buyer beware.

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  22. I do have an investment with Crimson Fine Wines, Any
    contact is either difficult or details will be sent out by post, But never arrive.
    I have asked to sell my wine and have received no paper work or phone call from them.
    I did speak with a receptionist once, who was going to get my call returned, Still waiting.

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    Replies
    1. The annual return for Crimson Fine Wines has been overdue since 21/03/2013.

      Delete