Gold & Silver Scams to Avoid

GoldSilver.com


Gold & Silver Scams to Avoid

So perhaps you’ve decided to invest in gold and/or silver; but wait! 

There are a few things you need to know before you begin your journey with precious metals.

At GoldSilver.com, we have spent years educating our customers on the virtues of investing in gold and silver, and we believe those who have made the choice to invest in precious metals, specifically silver and gold, are going to be on the winning side of a massive impending wealth transfer. But that doesn’t mean all precious metals investments are the same.

We personally invest in gold bullion and silver bullion right alongside our customers, so we have a vested interest in not only figuring out the optimal timing in the marketplace, but also figuring out the best vehicles in which to make an investment in precious metals.

Over the years, a vast number of precious metals-type investments have proliferated in the marketplace, but are they the real deal or are they dangerous to your long-term financial health? Many precious metals-type investments offer some benefits, but can also multiply your risk.

Rest assured, we at GoldSilver.com have done the research, we can help streamline your learning process and hopefully, help you to make the right investment choices the first time you commit to buy.

Before people invest in precious metals, they must understand their reasons for doing so. For most of us, the goals are wealth preservation and the chance for spectacular gains. There are easy, safe, and low-cost ways to accomplish those goals. 

Shortly, we will tell you the best way to invest in precious metals, but first, it’s important you learn the worst possible silver and gold scams.  By knowing about potentially dangerous precious metals investments you will better understand the stakes and more easily make the right investment decisions for yourself and your family.

 

1. Numismatics

A numismatic coin is a collector coin that has value in excess of its metal content because it is historical or rare. As a gold and silver bullion dealer, people often expect us to carry numismatics coins—but we don't. Why? Because collector coins are a different investment than gold and silver bullion.  

When you invest in a numismatic coin, you are taking a major risk because you are already deep in the hole as soon as you purchase the coin. If you don’t believe us, try buying and immediately selling a numismatic coin—you’re likely to lose anywhere between 20 and 50% of your purchase price right off the bat.

Consider this: when you buy a numismatic coin you pay three different layers of costs—1) the cost of the metal, 2) the dealer’s spread, and 3) the numismatic premium. The numismatic premium can range anywhere from a few bucks to a few hundred thousand bucks.

That means before you are “in the money,” the market price of your coin must have gone up more than enough to cover the numismatic premium. Until then, your collector coin will be a loser.   

Over the years, gold and silver dealers have build a mythos around numismatic coins—as if they offer some mystical advantage to plain gold and silver bullion. Those myths have been created, not because numismatic coins are good for the buyer, but because they are good for the seller.

The biggest myth about numismatic coins is that the government can never confiscate them.  The second biggest collector coin myth is that they do not have to be reported to the government. Less-than-scrupulous precious metals dealers have made a living selling


The information, opinions, and financial data presented are for educational purposes only and are not intended as investment advice. No guarantees are made as to the accuracy of the information provided herein. Situations can change from day to day. Every investor should do their own due-diligence to determine which investments are best for them.
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