When purchasing precious metals, you have to beware of many risks, including people who sell fake coins or run illegal operations. Some sellers have no intention of providing the gold coins, and others focus on finding inexperienced buyers to overwhelm and swindle. Below, the experienced San Diego gold coin dealers from First Nation Bullion discuss some of the most common scams involving gold coins and ways to avoid them.
Low Pricing
Most imposters list fake precious metals online or in stores for unbelievably low prices to attract buyers looking for specials. These buyers often focus more on the price and take little time to examine the gold coins. While deals do exist, some prices are simply too low to be legitimate, and you shouldn’t fall for these scams. Some reputable sellers do offer coins at lower prices if they have excess inventory or want to get quick cash. However, most sellers want to earn a profit from their collection, and they’ll offer competitive pricing that allows them to do that. It would be best to research current market prices for gold coins to avoid scams.
Altered Documentation
Documentation is easy to forge, and not all details and documents are genuine. Some scammers will sell you gold coins that aren’t worth the price or list a shipping company that doesn’t exist. Some thieves also create imaginary storage centers, allowing you to believe your precious metals are safely stored and waiting for pickup. It’s best to verify all documentation before signing any paperwork, as this could prevent you from overpaying or signing away access to the gold coins.
Companies that Vanish Quickly
Some businesses open and shut down quickly. These companies pop up frequently to swindle buyers out of money and close before it’s time to deliver the merchandise. They often target the same groups of people, including new buyers and individuals who are least likely to research the business. To avoid being scammed by phony companies that vanish quickly, research the organization. Post questions in online gold coin groups to learn more about the business. If verified users on message boards have never heard of the business or the company cannot provide real-life testimonials and proof of licensure, avoid making purchases from that organization.
Nonexistent Coins
Other scammers trick people into purchasing gold coins that don’t exist. If the seller continues to make excuses and refuses to let you look at the coins, the odds the gold coins are real are extremely low. If you cannot verify the type of coins you’re purchasing and the seller doesn’t provide you with an opportunity to see the gold or time to conduct research, stop the deal immediately.
Whether they’re looking to purchase silver bars or gold coins, San Diego collectors know they can trust the reliable professionals at First National Bullion. We can answer all your questions and help you find all the information you need to decide whether precious metals are the right investment for you. Give one of our experienced dealers a call today at 858-666-6570.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.