Whether you are looking to purchase collector or bullion coins such as a Gold Eagle, Silver Eagle, Canadian Maple Leaf, Chinese Panda, South African Krugerrand, or the Saint-Gaudens Double Eagle, you need to know two things critical to your purchase in order to avoid being a victim of gold coin fraud.
Rule #1 – Evaluate Coin Dealers
Finding a coin dealer isn’t difficult, but locating a coin dealer that is qualified and honest is. Not all coin dealers are financially stable, knowledgeable, credentialed, ethical, and respected by their peers. This is why it is critical that you take your time evaluating coin dealers before you make a purchase from any particular one.
The Professional Numismatists Guild (PNG), an association of coin dealers that has strict standards for the dealers who join, is a great place to start your search. Coin dealers who belong to PNG subscribe to a code of ethics – they agree to grade coins honestly and represent their merchandise fairly. Not all precious metal dealers behave this way, so take your time when choosing a coin dealer to do business with.
Rule #2 – Take Possession of Your Purchase Immediately
If you are buying large quantities of gold coins or bullion, many companies offer you the option of having them store your purchase in their vaults for you. Although this sounds tempting – knowing that your gold will be locked up and in a safe place – do not fall for this. It is important that you take delivery of your gold as soon as possible. What if a coin dealer or company goes bankrupt or is being dishonest? You will be left holding a paper note that isn’t worth anything.
If you do not feel safe storing your gold at your own house or somewhere you have control over, then take your bullion or rare gold coins to a bank safety deposit box for storage.
Even following these two rules will not fully prevent you from becoming a victim of a coin scam. If you somehow got a fake somewhere down the line or your coin was graded or slabbed incorrectly, you may have a dispute and need the help of a knowledgeable coin fraud lawyer Coin Fraud – Is Your Investment at Risk?
