Log InJoin 

Free Creative Commons Images

Similar Articles

Random Articles

5 Gold Coin Scams

5 Gold Coin Scams

Just as it is important to research gold investments and the gold broker you work with, there are a number of gold coin scams that you have to avoid. Even if the broker seems professional and trustworthy it is always good to protect yourself and your money. Below are five popular gold coin scams you should avoid.

You Will Double or Triple Your Money

In rough economic times many professional gold dealers will promise you the world. They will claim that their coins will double or triple their worth. While gold prices have increased dramatically, particularly since the downturn in the stock market, nobody can guarantee the future. Be wary of anyone that over promises anything. It is often extremely difficult to separate the professional dealers from the scam artists.

Charging More Than It's Worth

This is another simple scam that takes advantage of consumer ignorance. Just like bringing your car to a mechanic who can tell you know nothing about the value of car parts, some gold dealers operate the same way. If they know you have no clue what the actual value of the gold is that they are selling you than they have every excuse to try to overcharge you. What is the solution? It's easy, be an educated consumer. Research the price of gold and sound educated about the product you are looking to buy when you arrive at the gold dealer. Also remember to shop around and speak to several gold dealers before you make your purchase

They Will Buy Back the Coins At or Above the Price You Pay

Do not believe this one for a second. Nothing is guaranteed except for the quality of the coin you are purchasing. The coins condition, its future price and other promises the dealer makes are not guaranteed. Use a third party to grade the coin's condition and make sure they certify it.


I am sure there are plenty of legitimate gold telemarketers out there but why risk it? Make you sure you can see the product you are purchasing so you know it exists and what you are actually getting. Plus for your safety I would advise against giving your credit card information to anyone over the phones - especially is they are calling you! Telemarketers try to scam you with high pressure sales and illusory promises.

Quoting the Saloman Index

The one thing gold dealers will not tell you about the Saloman Index is that it is based on the value of 20 extremely rare coins. Common coins like American Eagles, Canadian Maple Leafs and Krugerrands are far more common and do not appreciate like rare coins. Keep this in mind the next time sometime tried to guarantee a return by quoting the Soloman Index.

The best way to protect yourself is to be an educated consumer. There are numerous trade groups and manuals that can provide the information you need to be an informed consumer of physical gold, and seller for that matter.

Image by: Lawrence OP