When you buy rare gold coins or any other valuable commodity for that matter, you want to do everything in your power to avoid being scammed, swindled, or gypped.
Con artists and scammers want to do everything they can to squeeze an extra few dollars out of you, and you will find that identifying these scammers is not as easy as you might believe.
The best con artists may often hide in plain sight, and unfortunately for those who have fallen victim to scammers, the best way for others to avoid being put in these same positions is to learn from the mistakes of those who have already been hit.
Scammers come in many different disguises, and to educate you and equip you with the knowledge you need to deter them, listen to these common gambits and tactics that have been employed by con artists.
Many dealers may appear to be friendly, trustworthy folks. Appearances can be misleading however, and one dealer proved that to an all-too trusting woman, who, over time became close friends with her coin dealer, who later convinced her to vacate her savings by investing in rare coins. Once the coins were purchased, this woman brought them back to her home for storage, and with the “friend’s pass,” the dealer walked right on in and swiped the coins, single-handedly conning this woman out of her life savings. This woman learned never to take a business relationship back home, and to keep things strictly professional when it comes to coin investing.
A popular scam that is seen all over the world is the phone deal. This widely practiced scheme can be conducted in a number of ways, but generally includes contacting potential buyers through advertising, often on television, and listing a phone number to call for a great rare coin deal.
These scammers shove all sorts of phony deals under your nose right when rare coins are at their peak, and once they have you on the phone, will con you into sharing your credit card information so they can sell you coins at a “great deal.” The one good thing about the phone deal is that it is easily avoided by sticking to the rule of only buying coins in a face to face setting. Do yourself a favor and never buy coins over the phone—if a deal is that good, there’s something wrong.
Many people claim to have gotten amazing deals through online auctioning, but this form of buying is also suspect. Anyone can create an online auction, include a picture of a coin they don’t actually own, and ship you a product that isn’t what you bid for. Do your best to avoid buying coins through online auctions, but if you feel as if you absolutely must do so, only enter auctions set up by reputable sellers, and take exceptionally cautionary measures, ensuring that you only use a credit card, and never, ever wire the money or pay with debit.
Another scam that is far less common but seen from time-to-time, nonetheless, is the investment scam. This duplicitous strategy can fool even the most cautious investor, and involves groups that advertise investing your money in various rare coins. Like the Madoff scandal however, these phony investors will use money they don’t actually have, and will throw your money into investments of all sorts, and may or may not have a single penny of yours when it comes to a return.
Rare coin scams plague the market and despite attempts to keep this trade clean, scammers will always make their way somehow. The best way to rid this fun, fast-paced market of scammers is by starving them, and educating yourself in opposition to their inimical, greedy ways.