Beware of 1% Gold Selling on TV
Let us be perfectly frank, anyone who advertises heavily on cable TV is often a gold buyer’s biggest nightmare. These firms use celebrity endorsements because they have no reputation of their own. While their ads are quite persuasive to the new gold buyer, in our opinion, they often use deceptive trade practices in s elling gold to you later.
What they don’t tell you is about their high pressure tactics they use to move you out of their 1% gold price come-ons.
We feel they often offer products unsuitable for investors. The BBB has told us some gold sellers on TV often sell back-end products with 50% to 100% mark-ups saying their gold coins are unique or special. No one should pay $2,400 for a $1,200 bullion gold coin. We’ve even seen cases
where the price of gold doubled and the client who bought gold from these dealers was not able to sell their gold to just break even.
Avoid Official Sounding Company Names
Another rule of thumb is to avoid a company with a government-sounding name, like United States this or that. Avoid gold sellers names that sound like the U.S. Mint or a stock trading firm. This is often a ploy used by inexperienced gold sellers or con artists over the years to deceive new customers by using official-sounding names. When you don’t have a reputation of your own, you try to borrow “good faith” from others. Please avoid these gold sellers.
No Santa Claus in the Gold Business
We urge you to avoid "looking for a great deal" on auction sites. There are no big discounters who sell gold or firms who can consistently sell gold at 1% margins and stay in business long. Too often you get less than you paid for or problem coins you can never resell. Be careful, you may also be offered a good deal on the Brooklyn Bridge by these unscrupulous characters.
Avoid Little Coin Dealers
Anyone can sell gold on the Internet. Watch out for small-time coin shops that pop-up in your city when gold selling is hot. Most new guys have little experience managing a business and very little knowledge of the gold industry. Worse yet, they have no idea of the laws governing the buying and selling of gold and silver.
Austin Rare Coins have been in business for 27 years, they know the laws, are long-term members of the BBB, and are most likely to quickly resolve any problem that may arise. Most importantly, they are likely to be in business to buy your gold back next week or years from now when you’re ready to sell.
Never Let Anyone Sell Gold to You and Store It
There is an added layer of risk anytime you allow someone else to store your gold. Neither the S.E.C. or any U.S. government agency inspects or monitors gold storage companies. There is little peace of mind and no guarantee that you didn't trade your money for an empty storage locker. We feel it's best to take personal possession of your gold. A $35 a year safety deposit box will hold a million dollars’ worth of gold where it can be accessed immediately in a financial crisis. Gold stored a thousand miles away could be useless. (We could write an essay on storing gold and why we don’t trust ETFs and companies that take your cash and send you a paper receipt. In the end, you may end up with nothing.)