As Texans are being told to diversify their investment portfolios by investing in precious metals and gold coins, Texas Attorney General Gregg Abbott warns of the gold-related investment scams taking place in Texas.
Gold has been in demand for years, as it is used in computers, cell phones and other technical equipment and medical devices. Because of this, many people believe that gold is a safe haven against an uncertain economic market. However, gold bullion is at record levels, which indicates that potential investors need to be careful when to invest in gold.
Purchasing gold or gold coins is exciting to new investors; however, inexperienced investors should do their homework before investing in gold. Many just want to capitalize on the rising gold prices and end up believing inflated claims by unscrupulous salesmen or precious metal dealers. These claims are intended to take advantage of investors who are not informed.
Steps to take before investing in gold include:
- Research gold prices and values of gold coins.
- Study the market to make a good investment decision.
- Learn about the gold fraud claims that deceive investors out of their money so you can avoid being a victim of gold-related fraud.
It is very important for Texans to study numismatics, which is the study of coins and currency, before investing into rare gold coins or gold bullion. Because there are dealers who will exaggerate or flat-out lie about the coin's potential to increase in value, you should investigate their claims before investing with them. There is a good chance that if they are promising a coin will double or triple in value they may be committing gold coin fraud.
Remember: when buying gold bullion coins, the value is based on the gold content as well as the price of gold that day. When purchasing an old, rare gold coin, the value may be dependent on the condition of the coin, quality, market availability, rarity, and price. Having this knowledge may help in researching a coin's value and grade, but just remember to take your time, study the coin, and scrutinize the seller and their refund policy prior to purchasing anything.
Before becoming a victim of gold fraud, Texans are encouraged to contact the Attorney General's Office and the Better Business Bureau to verify if there are any complaints against a specific seller or dealer.
If you have been a victim of Texas coin fraud, you can contact the Voss Law Firm and speak with experienced Texas gold coin fraud attorney Bill Voss at 888-614-7730 to find out your rights. You will receive a free consultation, and you can request his book, Coin Fraud - Is Your Investment at Risk? for free today.