So-called “rare coins” are almost always way, way overpriced.
There is a common misperception that all gold bullion coins are rare. This is certainly not the case, but the coins that are rare are usually overpriced. While gold bullion coins have at least a 0.900 fineness, commemorative or minted coins range in fineness and are classified as numismatics. Antique and rare numismatic gold coins are usually purchased by collectors but some investors also add them to the portfolio. This is very risky because these coins may be overpriced and investors may not even realize it.
Many websites about gold coins are acting as wolves in sheep’s clothing. They are actually sellers of the coins they are writing about and these sites are rife with scams. Swindlers use the fact that gold confiscation occurred over 75 years ago to make people afraid it may happen again. These shysters claim that the only safe action is to invest in gold coins minted before 1933, the year President Roosevelt issued the executive order for the initial confiscation. This gives an unscrupulous gold coin dealer a way to sell old, rare gold coins for much more than they are worth.
This is just one of the scams that fraudulent dealers run regarding rare gold coins. These dealers are difficult to identify because they often have nice offices, staff a team of supposed “experts,” and use the same marketing techniques as legitimate dealers. Instead of purchasing rare gold coins and risking being taken advantage of, individuals should invest in gold bullion coins at no more than one percent over spot prices. By doing this, investors will get a good buy and hold an item whose value is estimated to increase.
In the last few months, these gold “wolves” have been all over the mainstream media, mostly because they’re promising financial security to would-be gold investors, and then ripping them off — often scamming people out of retirement savings.
Whenever you see a gold dealer advertising pre-1933 “rare” coins, run away — they’re making stuff up to rip you off.
Next Part: Cash for Gold