Investors wanting to enter the gold and silver markets or add to existing portfolios should be wary of potential counterfeits, plated “gold coins”, or overpaying for any purchases. This advice comes from the Accredited Precious Metals Dealers (APMD) division of the nonprofit Professional Numismatists Guild (PNG).
“The new ‘Gold Rush’ of significantly higher prices this year for gold and silver have resulted in new customers entering the market as well as current or former customers now adding more precious metals to their investments. To avoid potential scams, investors must know the credentials of the bullion dealer, not just what the dealer may tout on TV advertisements or a fancy website,” cautioned PNG-APMD President Richard Weaver.
All APMD members must adhere to a strict Code of Ethics in the buying and selling of precious metals.
“Many of the base metal replicas, advertised as ‘tribute coins’ in the marketplace, are plated or layered with just a microscopically thin coating of gold — only about $1 worth of actual precious metal. They may have limited secondary market value and should not be confused with genuine, legal tender gold bullion coins, such as the popular American Eagle or Canadian Maple Leaf,” explained Weaver.
He said investors can take precautions to avoid counterfeits by exclusively dealing with knowledgeable experts.
“If you don’t know gold, you’d better know your gold dealer,” Weaver emphasized.
He also cautioned against high-pressure sales tactics and excessive selling prices that would force buyers to wait for gold or silver to double or triple in value before they could make a profit.
“Don’t make any purchase until you have shopped around and learned the competitive prices for bullion items sold by reputable dealers who don’t have high marketing expenses. Make sure you are not getting ripped off,” he advised.
For additional information about the Accredited Precious Metals Dealer program, call the Professional Numismatists Guild at (951) 587-8300 or visit www.APMDdealers.org. A list of APMD member-dealers is online at www.APMDddealers.org/apmd-dealers.