A few weeks ago, I warned about pre-1933 gold coins being used by gold dealers as part of a gold scam. Basically, gold dealers will tell you that you need to invest in gold because gold is going to increase in the future, and then they try to get you to buy old coins that are overpriced rather than bullion coins that are fairly new.
The reason for this is simple: gold dealers know that most people have no idea how to buy gold coins, and will probably get ripped off. Hundreds of gold dealers around the country were involved in these kinds of scams.
It’s the old-fashioned bait-and-switch. Convince people they need to buy gold bullion, and then sell them pre-1933 gold coins. It’s a complete ripoff.
The argument that most of the gold dealers pitched was that pre-1933 gold coins won’t be confiscated by the government. Gold confiscation is a problem ever since FDR confiscated privately owned gold in the 30s. But the argument doesn’t hold up. The government can confiscate any gold they want, and there’s no legal obligation for them to make exceptions.
But how was I right? Because this is all over the news. Glenn Beck’s main advertiser Goldline International has apparently taken part in the scam, using Glenn Beck to funnel consumers into their bait-and-switch net. This is sad, because I’ve always been a fan of Glenn Beck… until now, at least.
It just goes to show you that you shouldn’t automatically trust anyone when it comes to your money, and should always seek a second opinion from someone else before trusting an “expert” with your money.
Here’s how you should really buy gold if you want to own some of the yellow metal:
- Gold Coins. If you want to buy gold coins, then buy American Eagle Gold Coins or American Buffalo Gold Coins.
- Gold Income. If you want to have an income from your gold, then buy gold stocks, or some gold mutual funds.
- Gold Speculation. If you want to speculate on the future price of gold, then buy some of a gold ETF or gold futures.
If you have any questions, sign up for my newsletter and send me an email. Good luck!
Tags: buy gold, glenn beck, gold scam, pre-1933 gold coins