The Truth About Snake-Oil Salesmen
If you are in the market to buy gold as an investment then you came to the right place. During my own review of trustworthy companies I found only one that lived up to their promises. At anytime you can jump to the bottom of the page to see my recommendation.
Who Can You Trust?
Take a look at the coins below. Tell me what you see? I’ll tell you what I see… I see two gold coins. There are several gold brokers out there that would like you to see something entirely different. They want you to believe that some coins are Collectible making them much more valuable as an investment.
The question is how much more can you expect to get for the collectible coin when you sell it? I’ll tell you, the special coin you paid a premium to own can sell for….. drum roll please…… The spot price of gold just like any other coin.
There might be a few exceptions to this rule such as a mint coin from the 1800’s found in a ship wreck. Other than that don’t expect to get anything more for it when it comes time to sell. The A commemoration coin or a picture of a special event will not warrant anyone paying you more than the actual cost of the gold. Buy gold for gold. Invest in the precious metals not the collectors value and you will have a much safer investment in the long run. Something else to thing about, it is not that difficult to forger old coin.
Concerned? You should be.
The sad fact is the internet world is filled with snake-oil gold dealers and there is nothing you can do about it. Well, almost nothing. You could refuse to do business with them just like I do. However, it is not important to know who to not work with. The list would be long and there are way to many names for you to waste your time trying to remember. It is more important to know who to do business with. Why? Because the good guy list is much shorter. In fact the list only has one company on it. As a reminder you can jump to the bottom of this article if you are ready to check them out. If not continue reading.
The Gold Industry is a Shady Place Indeed
The Gold Industry like any other industry is filled with money hungry opportunistic companies trying to figure out new inventive way to part you from your money. Many of these companies realize they can only sell the gold for its value. However, if they can convince you it has a collectible value they can sell the coins for much more than the actual value of the gold its self.
Take for an example gold worth approximately $1700.00 per oz. Snake Oil companies will sell collectible gold coins well above that value, then make the claim that these coins are worth more than just the weight in gold due to their collectors value.
GOLD is a precious metal. It is not a baseball card, old toy or antique car etc. You will not receive bonus points when you sell the special-coin. You get the current gold spot price and nothing more.
It is extremely important for people to realize that there are several companies out there selling coins well above the actual value. Precious metals are an excellent investment. However, in my opinion these overpriced collectible coins are not a good investment at all.
It is not difficult for you or anyone else to check the current spot price of precious metals. Simply go online and perform a simple search and you will see for yourself that the current prices for precious metals are easy to find. When buying coins, try to purchase as close to the going current price as possible and work with a broker that will buy back the precious metals at a fair price.
A fool and his money will soon be parted
I am not against people buying collectibles, as long as the collectible value will always be higher than the replacement value. However, gold is not a collectible. It’s a precious metal and the value of gold will always be the value of gold. The coin is only a method of measurement. The so-called collectible value of the “special” gold coin does not exist, it is just a way to trick new wannabe investors out of their money. It does not matter what the picture is on the front of the coin. Remember there are very few exceptions to the rule. As for me I would rather own $100,000 in gold than single coin worth $100,000.
There are many shady brokers that make a living out of convincing people certain coins are worth more money. The savvy investor will see right through that and realize that this kind of sales tactic is a scam. If it does not add up don’t walk, run.
I recommend that you stick with government approved coins. Don’t spend well above the value of the metal. When you sell your coin you should expect to sell the coin around the current fair market value. I only recommend working with companies that offer to buy back the gold they sold you at a fair price. Serious investors only care about how much the gold weighs they do not care about the so-called year or picture on the coin.
It is the only company I recommended.
I have found Regal Assets to be honest and they have always been available to answer my questions.
IrasGold 