In an earlier blog we discussed the various forms of physical gold that buyers can purchase and invest in and how their value corresponds to the market “spot price” at any given time. Gold has always been valuable, but how valuable it is currently corresponds to any number of factors. In a souring economy or one with unstable investment options, gold can look like a safe haven for the investor. In a booming economy the demand for gold tends to abate somewhat.
While gold is a solid investment choice and Grand Rapids Coins endorses the philosophy of investing 5%-10% of one’s total assets in physical gold and silver as a hedge against the unknown, it’s important to be careful when purchasing. There are many gold scams out there for the untried or unwary buyer. In fact, there are so many that the Federal Trade Commission has a page on its website addressing questions about buying gold, and recently the office of the Texas Attorney General issued its own tips for avoiding fraud in the gold market.
Grand Rapids Coins encourages our clients and gold purchasers everywhere to do their research about coins and bullion and especially about individual coin dealers. This would include researching the background of coin dealers, how long they’ve been buying and selling coins and bullion, and their Better Business Bureau (BBB) ratings. Reputable coin dealers will have memberships in leading industry organizations such as the American Numismatic Association and will be certified with grading services like the PCGS (Professional Coin Grading Service) and the NGC (Numismatic Guaranty Corporation).
Seniors are most at risk for gold scams, and should be especially careful in their transactions with all dealers, whether in person, through the mail, by phone, or online. Counterfeiting is an issue in both the coin and currency market; many counterfeit coins enter the U.S. market from foreign coin dealers selling via the internet. It is wise to use credit cards when making coin purchases because credit card companies offer extended fraud protection to their cardholders.
Remember that gold fluctuates in value and gold coins do as well. Neither is guaranteed to gain value immediately or even over the short or longer term. Do not buy coins from any dealer who uses pressuring tactics or plays on fears of government gold confiscation.
Grand Rapids Coins is a member of the Better Business Bureau of West Michigan (A+ rating), ANA, MSNS, CSNS, and FUN and a certified dealer with PCGS, NGC, and CAC. We are always happy to talk to coin collectors about our experience, our ratings, and our clients’ testimonials. We buy coins and evaluate coin collections. It is our business to know value and recognize authenticity, and we want that for our coin clients as well.