“If you don’t know gold, you’d better know your gold dealer,” cautions the leader of the Accredited Precious Metals Dealer program of the Professional Numismatists Guild
Dealers who sell bullion gold and silver bullion coins report an increase in new customers who want to own precious metals.
They also are seeing some earlier customers who are selling either because of personal economic conditions or simply want to take advantage of significantly higher bullion values since they purchased, according to members of the Accredited Precious Metals Dealer (APMD) program, a division of the nonprofit Professional Numismatists Guild (PNG).
“Of course, no one has an accurate crystal ball to precisely know the future, but dealers we’ve recently heard from say many of their customers are optimistic that gold and silver prices will continue going up, especially silver. Some dealers say their increase in precious metals sales are being made to investors worried about federal government spending and the uncertainty of the presidential election,” said PNG and APMD President Richard Weaver.
Gary Adkins, a former PNG President (2007-2009), concurred:
“It is anybody’s guess where bullion prices may be headed. There are those who feel that the trillions of dollars of debt the U.S. (and, for that matter, the world) [is] taking on, the uncertainty of the election, and the devastation of COVID-19 would all be very bullish for gold and silver. I tend to agree but believe silver offers the better play for the investor of more limited disposable income.”
“Gold is the psychological metal whereas silver is seen as more for industrial demand. Whatever your feelings, everyone should consider putting a small portion of their assets in something tangible. Don’t spend your milk and eggs money, however!”
“On the selling side, dealers are reporting purchases from estate sales, from buyers taking advantage of profits from [the] years-earlier acquisition of gold and silver bullion and also making purchases from sellers who quickly need cash whether because of unemployment, renovating a home or school tuition for their children,”
Several APMD dealers said they are assisting elderly investors to get refunds from unscrupulous telemarketers who sold them grossly overpriced and, in some cases, counterfeit items.
“To avoid potential scams, such as counterfeits, and to avoid paying too much when you buy or receiving too little when you sell, investors absolutely must know the credentials of the bullion dealer. If you don’t know gold, you’d better know your gold dealer,” Weaver cautioned.
“Know the current spot price of the precious metal you want to buy or sell. Bullion
items, such as the American Eagle, Canadian Maple Leaf, and South African Krugerrand, usually sell for only about five to 10 percent above the current spot price depending on the quantity purchased,” explained Weaver.
He also advises taking prompt delivery of the bullion items you purchase.
“Be wary of sellers who want to keep and store your gold, or claim it will take months to deliver items to you. Also, beware of high-pressure selling prices that would force you to wait for gold or silver to double or triple in value before you could make a profit,” Weaver added.
“A lot of retail customers are seeing TV ads for the ‘full retail up-sellers’ and in this type of market consumers can be easily misled. Be cautious!” warned Adkins.
“Many advertisers, telemarketers, and phone salespeople will try to convince you to make a hasty decision. Many of these people are ‘up-sellers’ which means that they try to convince you to buy something other than bullion coins which typically can have a five-to-ten percent markup above the current metal intrinsic value or spot price. They want you to ‘invest’ in a product where their margins are 25, 35, 50 percent, or even higher because they claim these will ‘perform better’ in the future,” he explained.
“Don’t be fooled, do your homework, shop around. In the end, you will save yourself a lot of money and potential heartache by not making a hasty, uninformed decision. Check with one or more dealers accredited, reputable dealers, such as PNG members, before committing any meaningful money. Precious metals are an important part of your asset protection plan, but be sure you plan wisely,” advised Adkins.
Investors should also not confuse so-called tribute coins with actual bullion items.
Many of the privately created tribute coins are made of base metal and merely coated with a microscopically thin layer of gold perhaps worth only about a dollar, according to the PNG. Genuine American Eagle and Canadian Maple Leaf legal tender bullion coins are over 99 percent gold, and in some cases even .9999 fine.
The Professional Numismatists Guild established its Accredited Precious Metals Dealer program in 2015 to provide consumer and investor protection in the marketplace.
Every APMD member must follow a strict Code of Ethics in the buying and selling of precious metals.
For additional information about the Accredited Precious Metals Dealer program, call the PNG at (951) 587-8300 or visit www.APMDdealers.org. A list of APMD member-dealers is online at www.APMDddealers.org/apmd-dealers.