Gold Buyers Guide: How To Avoid Getting Ripped Off
by Peter Schiff
321gold.com
Euro Pacific Precious Metals
Posted Nov 28, 2011
Below is a summary of my 15-page special report, "Classic Gold Scams and How to Avoid Getting Ripped Off." If you'd like to learn more and receive a free download of the full report, go to www.goldscams.com.
I've always advocated that investors hold at least 5-10% of their portfolios in physical precious metals. With major Western nations now defaulting on their debts, more and more investors have decided it's time to take my advice and own an asset that doesn't depend on the solvency of an ETF, bank, or government.
Unfortunately, with all these news buyers in the gold market, there is ample opportunity for dishonest firms with big advertising budgets and celebrity endorsements to make a quick buck.
If you are thinking of buying gold or silver for investment, diversification, or asset protection reasons, this quick guide will help you avoid common scams and pitfalls.
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If you want to invest in precious metals, you want bullion coins or bars. If you want to build a coin collection for sentimental or historical purposes, you want numismatic coins. A buyer should always know which is which, and purchase accordingly.
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Unless you're a very serious coin collector with specific knowledge of the numismatic world, stick with bullion coins like the American Gold Eagle, Canadian Maple Leaf, or Krugerrand.
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Be wary of anything using the term "collectible," "proof," or "commemorative," as they often indicate a severe rip-off.
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In a leveraged account, the dealer lends you money to buy gold. This can be very hazardous.
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The simple rule is: you shouldn't purchase financial services from a metals company.
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Grading ("MS-70", etc) is only meant for collectors buying genuine old and rare coins. When it comes to bullion, all you need to care about is the weight of pure precious metal. After all, do you care if the change in your pocket has a bright, shiny finish? No! Because it is meant to circulate as money. Gold and silver bullion coins are money, not collectors' items.
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Details here: http://www.321gold.com/editorials/schiff/schiff112811.html
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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