With the ever increasing price of gold, scam artists crop up everywhere hoping to take advantage of you. Based on the Why Invest In Gold article and the Sleazy Gold Coins Scams article at InvestorPlace, we want you to be aware of 5 scams that unscrupulous con men an women are up to.
3. The Salmon Index Head-fake
4. Fake Bullion
5. Non-Existent Bullion
Some dishonest gold coin dealers lie about the grade of the coin. The best grade is MS-70. That’s “mint state” – and never handled. But, it’s easy for a dishonest gold dealer to lie about a coins condition. If it was really an MS-63 grade (very clean condition), but you’re told it’s a perfect condition MS-70, you can up paying nearly a thousand dollars over what you should have paid for it.
Tip – Get a the coins appraised by an independent source.
Consumers get distracted by shiny things – and pretty packaging. That’s just what some dishonest gold dealers would like to have happen to you when you decide to invest in gold.
If the coin cannot be examined without packaging, watch out. The packaing could be hiding something – like inferior coins. You could even be buying a coin that’s really a gold-copper alloy that looks just like pure gold in the case packaging.
Tip – Serious coin collectors don’t care about pretty packing for their investments. Make sure the coin is real – and is the grade that you paid for.
The Salmon Index Head-fake
The Salmon Index is sometimes quoted by disreputable gold dealers as proof you can get rich quickly. The index is dated – and really was only for twenty very rare coins. Gold scam artists reference the index and use math tricks to trick you.
Tip – If it sounds too good to be true, it probably is. Have realistic expectations – and don’t succome to high pressure sales tactics.
Other gold scam artists will make coins and bars out of lead and clad them in a gold-copper alloy. They look and feel like gold to you, but you’ve been taken – and you money is gone.
Tip – Make sure you are buying your gold from a highly-rated gold dealer.
Some really brazen gold scam artists sell you gold that they don’t have – and won’t have. You end up buying nothing. Scam artists know that some gold investors are afraid to have gold in their home. What if it gets stolen…then what? So, you feel better about the dealer holding your investment in a secure vault. You’ve been had.
Tip – Take possession of you gold. Put it in a secure safe at your home or put it into a safe deposit box at the bank.
What To Do
You should always buy gold from a highly-rated and well respected gold dealer. To find out where to buy gold online safely, visit http://wheretobuygoldonline.org/.