Avoid gold coin investing scams that are prevalent now that the price of gold is over a thousand dollars an ounce.
"Gold" coins are advertised on television and in the newspaper, in the magazines and even on billboards. Many of the ads sound like this is such a great investment.
Can a nickel be worth $19.99? Yes, if it is gold, but the advertised nickel is not gold. It is gold clad, or has a gold finish over another metal.
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Difficulty:
Moderate
Instructions
1
Buy gold.
Invest in gold if you choose, but be sure it is gold, and not gold wash, gold clad, HGE or gold electroplate, gold filled, goldtone, or any of the other .9999 percent pure gold clad advertisements.
2
Listen to the advertisements carefully.
Hear that "Gold has never been worth zero." The dollar has never been worth less than a dollar in the USA either. Maybe we should be investing in dollars.
3
Beware of the sideshow.
Watch the clever language of the ads like "Based on the famous design by James Earle Fraser." Yes, he designed the buffalo nickel in 1913 and was an American portrait sculptor, but that will not add value to a gold clad coin that is based on the original nickel.
"Purest gold coin ever struck by the U. S. Government." This coin is not struck by the U. S. Government--the reference is obviously to the ORIGINAL $50 gold coin.
4
Watch for other points of deception.
Listen for terms like non-currency or non-monetary minting, copy, and
pure gold clad masterpiece. Also listen for certificates, strict limits, early registration, and the importance of acting immediately to not miss out.
The actual value of the 31 milligrams of gold advertised is about $1.10 on a good day. Remember that 31 milligrams is far less than a gram.
5
Buy pure gold and do not buy from high pressure sales.
Select coins that are made of gold, coins that have the approval of the U.S. Mint, or the South African Kruggerand or similar one ounce gold coins, or buy gold bars, or gold bullion.
6
Purchase gold from reputable dealers with a return policy.
Buy gold carefully, and remember that a guarantee is only as good as the dealer. Gold is easily sold on the market today, so beware of bargains in the gold market. Bargains in gold are often gold coin investing scams.
Reputable dealers will probably be willing to electronically test gold in your presence. Ask for electronic testing before you buy.
Tips & Warnings
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Buyer beware. The market for gold coins is infested with scams, multi-level marketing schemes and other unsavory business practices. GoldQuest ensnared millions...
