Finding gold coin dealers is relatively easy, thanks to the internet. The web allows anyone interested in gold coins to do extensive research and to shop around without driving around or making lots of phone calls. Google is your friend when you want to find current prices on the Gold Eagle coin and to find out if a specific dealer is a reputable choice.
Before you begin, think about what your goals are for gold coin collecting. Are you looking to invest in gold as an alternative to investing in the stock market? Do you expect the investment to make gains in the next few years or are you willing to wait it out? Or maybe you are simply looking for gold bullion to collect as an exciting hobby. Displaying gold in your home can really jazz things up.
The whole point of thinking about your goals is to help you decide what kind of gold coins to buy. Each coin has a slightly different market so knowing what you intend to do with your gold will help you pick the best specimens for your particular collection. For example, a hobby collector may just pick coins for their looks or style, while a gold investor is going to buy coins that are traditionally stable in value.
What about being scammed?
One of the easiest ways to be scammed is to be led to believe your coins will increase in value very quickly. Everyone knows the current market is unstable and it is actually very hard to forecast how it will be in the near future. Use the latest editions of numismatic magazines and journals to learn as much as you can about the gold coins you would like to acquire. The more you know, the more power you have over high pressure sales tactics.
Investigate dealers online first before calling them or walking in to their shops. A quick search of the company name will reveal information on any possible scam incidents. If you plan on making a big purchase, it is also wise to consult an investment lawyer about the conditions of the purchase deal. Sometimes a dealer may be arranging things to their benefit and a law expert can help you spot this before the deal is made.
How to pay for Gold Coins?
Something to consider, is that some gold coin dealers do not take credit cards. Do your homework in order help in your search of finding gold coin dealers who accept your preferred payment. Checks and cashiers checks are often used to avoid the fees associated with processing credit cards. Other dealers do not take checks at all and insist on cash-only transactions. Fully research your dealer so you can plan to pay for your gold in a way that is comfortable for you. It would be entirely frustrating to find the perfect coins but have trouble with payment.
Finding An Accredited Broker
Some popular and trusted dealer choices with a good track record are Gainesville coins, ITM trading, and Goldline International.
It is always recommended to buy coins from an accredited gold broker listed in the Professional Numismatist’s Guild (PNG) directory. The PNG specifications require fair and ethical transactions and also keep strict guidelines. Additionally, members of the guild are reviewed by their peers to monitor ethical behavior. By keeping within these bounds, you will have an experience that is pleasant and worthwhile.
The American Numismatic Association’s (ANA) directory is another place to go with accredited listings. They are considered less strict than the PNG, but they keep a tight watch to prevent all forms of coin fraud. As a side note, there have been a lot of recent complaints about a national dealer named Lear gold, so be careful when dealing with them. Look online for the most recent information you can find on your selected dealer.
10 Other Tips for avoiding scams
- Don’t rush in to quick. Investigate investment claims and get second opinions.
- Find out how long a dealer has been in business. A good track record of many years signifies someone who does business the right way.
- Don’t be fooled by the sales pitch that a dealer will buy back your coins when the value goes up. Realistically, you know this does not work for their business plan and is only an attempt to get you excited.
- Have a plan for dealing with grading and value discrepancies. Have another professional rate your coins as soon as you get them. If a major difference in value surfaces you should have a plan and an agreement with your dealer for settling the difference.
- Check the quality of the grading service being used. Be specially cautious about grading done in ‘slabs’ and make sure the grading service is not taking shortcuts. Not all grading services are viewed with the same level of respect, meaning that a 60 or 70 grade at a lower tier grading service is not the same as a top tier grading.
- Shop around for the best price and quality. If a price seems too low for the quality being offered, it’s probably not in as good of condition as claimed to be.
- Make sure you take your coins home. No need to let someone store them for you. At home, you can set up a special area to preserve them perfectly.
- Never give out your credit card information until you have begun an actual purchase.
- Walk away from high pressure sales tactics. If the business is reputable they will wait for customer to come to them and will not gain any value from selling under pressure.
- Be cautious about the Salomon Brothers Index. Dishonest dealers use the numbers to make untrue claims about coins that are not likely to be valued by the Salomon Brothers Index.
Going through this list can make it seem like a real hassle to find a good gold coin dealer. There are risks involved, but many people invest in gold and are very happy about the gains they are able to make. The key is in doing your research and becoming an educated buyer of gold coins. Though the price of gold does fluctuated like the dollar, it is generally more stable over time and is looked upon favorably as an investment medium.