As the price of gold has steadily climbed upward, more and more people are interested in buying and owning gold. Unfortunately, folks who want to profit unfairly from the gold boom are also getting into the game, and gold coin investment scams abound. Knowing how to avoid gold coin investment scams is important to protecting your wealth should you choose to buy gold.
For starters, the best way to avoid gold coin investment scams is to avoid investing in gold coins. There are many other ways investors can profit from the gold boom, including buying gold bars or purchasing gold investment products such as stocks, ETFs or ETNs.
However, if your heart is set on gold coin investing, as there are some benefits unique to this form of gold investment, here are a few tips to help you avoid being taken advantage of by shady dealers.
Make sure the gold coins you’re investing in are authentic. Do not invest in gold wash, HGE, gold electroplate or other bogus gold coins. Make sure that you understand the purity and weight of any coins you are investing in.
When considering buying in to a gold coin investment strategy, check out the references of the people who you are dealing with. Check Internet forums, Google the group’s name and talk with your fellow investors.
You should also not be shy in asking questions of the person running the investment plan or who is selling you gold. You’re the customer, you’re in the position of power. Ask all the questions you like about past performance, expected returns, etc.
Gold buyers should resist high pressure sales tactics. If you feel a sales person is pushing you toward a sale without giving you time to adequately review the deal, just walk away. High pressure sales tactics are commonly used to push marks into buying bogus materials before they have time to think about it.
If you’re buying gold directly, buy only from dealers who have a return policy. Gold dealers with a return policy are less likely to be involved with shady dealings than those that don’t allow returns.
When buying gold coins, insist on documentation of authenticity. Documentation should come from a respected coin evaluating outfit, such as the Professional Coin Grading Services. Documentation ensures that the coins you buy are what their sellers claim them to be.
Gold coin investment can be a great way to invest in gold. Gold recently passed the $1,300 per ounce mark, and is expected to continue to climb. By buying into valid gold coin investments, you can ride the gold boom upward, earning money from gold’s ascent.
