Consumers must be savvy and educated when making a purchase, especially within the investment and collectible worlds. When it comes to precious metals, this is especially the case because there are a lot of scams. Before you buy gold coins from a dealer, you should be aware of the bait and switch techniques some employ.
Gold dealers rope customers into gold coin scams using a common technique. These unscrupulous individuals entice customers through their doors by offering extremely low prices. Once the customer is within their confines, they attempt to switch the attention to “rare” collectible gold coins. Unknowing customers can lose hundreds, if not thousands, of dollars if they fall victim to this scam.
Legitimate gold dealers often lose business to these con artists who list selling prices as little as one percent above their cost. Consumers make the decision to go with the cheaper company only to find out that they are now being roped into a discussion regarding high-priced and so-called rare collectible coins. If they do not stick to their guns, individuals can walk away spending a lot more than they bargained for a coin that may not have a comparable resale value.
In general, it may take a while to gain equity in a gold coin because the dealer charges a premium over its own purchase price. Consumers should research this wholesale purchase price, also called the spot price, to determine whether the dealer premium is competitive. Some dealers issue free newsletters containing the spot price, so individuals can sign up to receive one of these.
Once a competitive dealer has been found, consumers should make sure that there are no bait and switch scams involved. The sales price can then be locked in and the individual can pick up the coin. New investors should start with small gold coins first, such as those that measure 1/10 of an ounce.
Tags: avoid gold scams, buy gold coins, collect gold coins, invest in gold