![]() ![]() Yes, it is true that in 1933 President Roosevelt issued an order to collect gold from U.S. "In some cases, these are outright scams and no gold exists," Brown says. “It surprises me, the number of people who will go ahead with a sale when dealing with someone who has already violated the Do Not Call list,” she says.Īlso, these outfits don’t give you physical possession of the gold, but claim to hold it for you in a vault. (A boiler room is filled with salespeople who cold call prospects and use high-pressure sales tactics.) Dama Brown, staff attorney for consumer affairs in the FTC’s Atlanta office, says that these operators usually make inflated claims about the potential profit from gold, such as “tripling your money in 30 days.” Such claims are often coupled with warnings about the weak economy and how gold, as a hard asset, is less risky than stocks, she says.īrown says your first clue that these aren’t calls from legitimate sources is if your phone number is in the National Do Not Call Registry but the gold salesmen call anyway. The Federal Trade Commission reports a rise in boiler rooms hawking gold coins or bars. Don't buy gold from a cold caller over the phone. The only real reason to own them is if you believe in a future meltdown of society, at which point paper money will be worthless and you’ll need small (gold) change to buy, say, ammo, freeze-dried food or a latte. You’ll pay a higher markup for such coins than for one-ounce coins. These coins come in fractions of an ounce, such has a half-ounce, a quarter-ounce and even one-twentieth of an ounce. So, for investment purposes, stick with regular coins. The premium you pay for proof coins may be inflated and may disappear, depending on the market. Proof editions are usually valued more highly than regular coins - by collectors. The dies used to make them are often finely polished and yield particularly pretty coins with mirror finishes. Proof coins are special editions struck for collectors and often mounted in a special case. In addition to the American Gold Eagle, the best-known coins typically bought and sold for their gold value alone are the Canadian Maple Leaf, the Australian Gold Nugget and the South African Krugerrand. For example, Goldline and some other dealers push a French gold coin, the 20-franc “Rooster.” Weiner says Goldline charges 69% more than the melt value of the Rooster, which has no numismatic value. Representative Anthony Weiner (D-NY) for the high markups it charges on such coins. Goldline International, a major dealer, has come under fire by U.S. In fact, these coins usually have little or no extra value above their “melt value” - the value of the coin if it were melted and sold as metal. Some gold dealers engage in a classic bait-and-switch: They offer gold coins or bullion, then try to sell customers on coins with historical, or numismatic, value. Then the authorized purchasers - some of whom sell directly to the public and all of whom sell to other dealers - add their own markup, as do the dealers who buy the coins. The Mint marks up the price of the coins to cover the value of the gold and the actual minting, as well as shipping and other costs, White says. If you’re new to buying gold, they are a great place to start.) Gold coins are also sold in commemorative editions directly to the public, but these are more expensive. White says that American Eagle Bullion coins, one of the most popular coins for investing in gold, first make their way into the market when they are sold to the Mint’s “authorized purchasers.” (See the list below of the authorized purchasers and their prices, terms and conditions. The day you buy, check the spot price of gold (available at many Web sites, such as pay more than a 5% to 8% markup over the spot price - that’s the typical premium, according to Michael White, spokesman for the U.S. If you’re investing in gold, remember that it’s a commodity, and it’s up to you to make sure you’re not overpaying. Here’s how not to buy gold coins (some of these tips also apply to bars) if all you’re after is gold’s investment value: Don't pay too much. Regulators say the number of rip-offs is rising with the price of the precious metal. But some of us like to possess the lustrous stuff by buying it in coins or bars - and that’s when you can get ripped off. Most of the total was invested in gold mutual funds or exchange-traded funds. Given that $52 billion worth of gold was sold last year for investment purposes, according to the World Gold Council, it’s not surprising that shady dealers have lined up for a piece of the action. ![]()
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