With the recent, rapid jump in the price of gold, investors should beware of scam artists trying to lure them with urgent claims of too-good-to-be-true low prices and quick, guaranteed bullion market profits, cautions leaders of the Accredited Precious Metals Dealer (APMD) program, a division of the nonprofit Professional Numismatists Guild (PNG).
“Don’t make a hasty decision based on slick advertisements. Don’t make any purchase until you have shopped around and learned the competitive prices from reputable, accredited dealers,” advised Robert Brueggeman, Executive Director of the Professional Numismatists Guild.
“If you don’t know precious metals coins, you’d better know your precious metals coins dealer! You don’t want to unwittingly buy counterfeits or send money to an unscrupulous seller who completely fails to deliver ordered merchandise,” warned Brueggeman.
“To avoid paying too much when you buy or receiving too little when you sell, and to avoid potential scams, investors absolutely must know the credentials of the bullion dealer, not just what the dealer may tout on TV advertisements or with a fancy website,” cautioned Barry Stuppler of Woodland Hills, California, President of the PNG.
“The second step investors must take is know the current spot price of the precious metal they want to buy or sell. Bullion items, such as the American Eagle, Canadian Maple Leaf, and South African Krugerrand usually sell for only about three to five percent above the current spot price depending on the quantity purchased. 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,” warned Stuppler.
“The third step is to take 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. The reason many people buy precious metal coins and ingots is because of their liquidity, but if you don’t have possession of the items then you can’t act quickly when you want to sell,” said Stuppler who also is President of the California Coin and Bullion Merchants Association.
Members of the PNG Accredited Precious Metals Dealer (APMD) program must adhere to a strict code of ethics in the buying and selling of numismatic bullion items and guarantee the authenticity of the merchandise they sell.
A directory of PNG/APMD members can be found at www.apmddealers.org/apmd-dealers. For additional information, contact the Professional Numismatists Guild at (951) 587-8300 or by email at [email protected].