News Combat Gold Coin Fraud by Knowing What to Look...

Combat Gold Coin Fraud by Knowing What to Look For

-

When it comes to investing money, many people want to make sure they have adequate exposure in multiple areas. However, when events like the Great Recession hit, millions of dollars fly out of the stock market and are invested in gold. This makes a pool of victims for anyone who would want to scam those out of their money. If you are thinking about investing in gold, know these four major scams before you do so.

Pretty Packaging – Human psychology tells us that if something is in a fancy package, it is worth a lot of money. This weakness is preyed upon by scam artists who put gold coins into fancy packaging and claiming that the packaging protects the gold and cannot be removed. The packaging, in actuality, obscures the coin so you can’t tell that it isn’t pure gold.

Phantom Gold – When you read about this one, you may see the US monetary policy in the mix. Suppose you buy $100,000 worth of gold. Naturally you don’t want to transport that much gold to your house (although if you do buy that much, you ought to have a safe!). The dealer offers to store the gold on-site in their high-tech safe. In actuality, there is no gold. The dealer gives you a certificate saying there is gold, but really none is present.

Miss-graded Coins – Coins, whether they are gold or not, are graded to determine how much wear and tear they have experienced. A mint condition coin, obviously, is worth more than one that has been handled often. Some dealers will claim that a gold coin is a step or two above its actual grading in order to convince you to pay more for it.

Inflated Values – Much like the stock market, the value of gold fluctuates throughout the day. To get you to pay more for your gold than it is actually worth, a gold dealer may give you data showing the value of gold is worth more than it actually is.

Combating these deceptive practices is actually very easy. Before any payment is finalized, insist that a third party (of your choosing) inspects the gold. The dealer will have your check, but before it can be cashed he has to wait a few days while you get an inspection. Any dealer that does not agree to this is trying to hide something, and you should take your business elsewhere.

Investing in gold and gold coins can be a great way to boost your portfolio. But if you get scammed, you can find yourself in dire straits. You should know how to spot “fools gold” before you put up your hard earned money.

Combat Gold Coin Fraud by Knowing What to Look For
General Contributor
Janice is a writer from Chicago, IL. She created the "simple living as told by me" newsletter with more than 12,000 subscribers about Living Better and is a founder of Seekyt.

Latest news

Japanese Owl Meaning and Symbolism

If you're wondering about the Japanese owl meaning and symbolism in Asian cultures, the Owl, along with Maneki Neko...

What Are the Signs of Depression in Women

Gender and depression have long been the scope of research in the field of emotional disorders; most authors believe...

Top 7 Superfoods for Men to Stay Young

Superfoods are generally regarded as targeted foods that provide the maximum nutritional benefit - thus these foods are nutritionally-dense...

Best Brain foods for Kids – Boost Brain Power and Keep Sharp

A child's brain is developing rapidly and if you want them to improve their performance in school and their...

7 of the Best Brain Foods for Studying

The foods that you eat can improve the functioning of your brain. Just like drugs, foods have amino acids,...

B12 Shots for Dogs – 10 Key Benefits

The end of 2010, my little dog -- a 7-pound Papillon -- became very stressed after a flood in...

Must read

Eletric Impact Wrench

Most mechanics do not like to go without...

Where Does Hog Roasting Come From?

Hog roasting, or spit roast cooking (as the...
- Advertisement -

You might also likeRELATED
Recommended to you