One scam that consumers need to beware of is the use of the Salomon Brothers Index. Although the Salomon index was originally a list of 20 very rare coins that appreciated around 12 to 25 percent each year, the same is not true anymore. At one time Salomon Brothers, a New York investment bank, maintained an annual index that tracked the appreciation of certain rare coins over several years. During that time period, the majority of the coins on the list did greatly appreciate in value through the years.
In present times, coin values do not appreciate as drastically as the ones did on the Salomon index; yet, some shady gold dealers still quote rates for rare coins from the Salomon Brothers Index hoping to make a sale to a novice coin investor. Beware of the dealers that are using the Salomon index still, as they are skewing the facts and values associated with rare coins.
Rare Coins Sold By Dishonest Dealers Using the Salomon Index Will Not Appreciate at the Same Rate as in the Past.
These dishonest dealers who are misleading buyers by quoting appreciation rates off the Salomon Brothers Index are taking part in a gold coin scam by providing false claims about value. When coin dealers take part in this unethical behavior, they entice buyers to invest in coins that will not increase in value as much as the coins that were on the index list. However, novice buyers are not aware of this scam, and some dealers still get away with using a skewed Salomon index when they compare a certain rare coin to that list.
In order to not be taken advantage of by an unethical coin dealer, it is wise to shop around, buy from a reputable company and do your homework and research prior to purchasing a rare gold coin. If you have been a victim of a gold coin scam including: the Salomon index, false value claim, false appreciation claim, high mark-ups, unethical business practices and not receiving the same coin you purchased, you may have a claim against a fraudulent coin dealer.
To report problems with a coin dealer, you can contact the Federal Trade Commission (FTC). You can also call Bill Voss, a skilled Texas coin fraud lawyer at the Voss Law Firm, at 888-614-7730 for a free consultation today if you believe you were a victim of a rare coin scam.
Also, make sure you download a FREE copy of attorney Bill Voss's book: Coin Fraud - Is Your Investment At Risk, for more information on this subject.
