Gold coins – whether they are gold bullion or collectors items – are frequently bought and sold by investors and governments on markets world-wide. From American-issued coins like the Gold Eagle and Gold Buffalo to internationally minted coins like the Canadian Maple Leaf and the Chinese Gold Panda, gold coins have gained popularity because they are comprised of the one of the rarest precious metals in the world and, thus, hold their value.
When purchasing gold coins, it is important to verify that the gold composition has not been compromised and that the gold is real. Often, after purchasing a fake, it is impossible to return the coin, get your money back or even trace the seller that sold it to you under false pretenses.
Here is set of Do’s and Don’t to help you avoid scammers and ensure the gold you are adding to your collection or portfolio is real.
- Check with a knowledgeable consultant if you are considering investing in a rare coin for your portfolio or collection.
- Make your purchases from respected and reputable coins dealers – buying on eBay or from other personal sellers cannot guarantee authenticity. If you are interested in purchasing from such sellers, make sure you take all possible measures (read customer reviews, get all the sellers info) before you buy.
- Research the coin seller online to see what other customers are saying, especially if buying from an individual seller
- Buy from sellers with a no-return policy, especially from those sellers who make the claim that the coins are from an ‘estate sale.’
- Purchase a gold coin if it is highly undervalued (a ‘good deal’). If it seems to be good to be true, it probably is.
- Invest in rare or antique coins if you do not have the expertise. While certified and commemorative coins can be valued greater than market price of gold, it takes an expert to recognize historical authenticity and monetary value.
If you do find yourself in a situation where you have been sold unauthentic gold coins, contact the United States Mint to file a report. The Mint consistently gets an influx of inquires from consumers who are trying to evaluate authenticity of their coins. To help out consumers and the public, the Mint posts items that have proven fake as well as questionable items on their website. Check latest news prior to making your purchase.
While taking these precautions can ensure you are buying from a credible source, you should also take the time to research reputable coins dealers and find the one that can fit your needs, whether you are a gold investor or collector. Consider outside expert ratings, like from the National Inflation Association and buy with caution until the coin dealer earns your trust.
This information is provided for general reference purposes and does not constitute professional advice. For detailed coin collecting or investing information, please consult with a professional expert.