Gold coins represent a big investment for many, as a growing number of people are moving their wealth from stocks and bonds to gold assets as a safe harbor against the current stagnant economy. However, if you’re looking to buy gold coins, it’s important to find a reputable dealer.
While the majority of gold coin dealers are honest, there are a few shady characters out there who are unscrupulous in their business practices. There are quite a few ways a shady dealer can cheat you, including fudging on the weights and falsifying information about the coin’s purity. That’s why ensuring that your dealer is honest is so important.
Here’s five tips to help you ensure your dealer’s a reputable businessperson:
– Determine the level of experience of your dealer. An experienced dealer is more likely to be honest, as shady dealers are often exposed and run out of business fairly quickly. Experienced dealers are also more likely to be competent dealers, as they have a great store of knowledge to draw upon and can give quality advice on the coins you wish to buy. When doing business with a coin dealer, check his credentials and education and years in the business before making a deal.
– How profitable is he? If your coin dealer is on the up-and-up, chances are he has a few of the trappings of success. Avoid doing business with folks in run-down store fronts. When you buy a coin, you want to buy it from an established dealer so if a problem crops up (for example, if the coin turns out to be a fake) you can go back and get help. Financially struggling dealers won’t likely be there when you need help.
– Reputation. What do other coin dealers have to say about the dealer you’re working with? A dealer’s professional reputation can give you a good idea of whether the dealer’s reputable or not. Before doing business, ask other dealers what they think of who you’re about to do business with.
– Refund and return policy. Dealers who are legitimate usually give their buyers some recourse if they’re unsatisfied with what they’ve purchased. If your dealer doesn’t offer some sort of refund or exchange policy, don’t do business with them.
– Look them up. The Professional Numismatists Guild has an online directory that consumers can use to find coin dealers in their area. By using the guild’s database, you can ensure that the dealer you select is a reputable, well-established coin dealer.
Gold coins are becoming increasingly popular as the wold economy continues to struggle. Gold prices have dramatically increased in the past few years, and more growth appears likely in the near future. Buying gold bullion or numismatic coins from a reputable dealer is a great way to catch a ride on gold’s bull run.
