We wish we could say pitfalls related to gold/silver are few but this is not the case. Unfortunately not everyone associated with gold/silver has your best interest in mind. Thanks for following our series “Keeping Gold Simple” at www.theprospectorsite. Our goal is to make sure pitfall victims don’t include you. Precious metal experts agree that higher metal prices equal more scams and misrepresentation. Let’s take a look at a few pitfalls all too common among new gold/silver buyers.
The Prospector Site receives plenty of promotional emails from precious metal traders jumping onto the band wagon. Recently one jumped out at us from an online company selling gold and silver bullion. At first the prices seemed competitive, so competitive we had to take a second look into what exactly this company sold. Upon further review, the one ounce bullion coins looked very real but actually were only silver/gold clad. This means buyers who believe they’re protecting themselves with gold and silver are not. We’re not sure how much precious metal is in “clad” bullion but it can’t be good.
EBay is a legit auction site where gold/silver trades by the boatload. EBay has gone so far as to set up a category for precious metal in which some online stores trade only through this auction site. There are a few very creative sellers on EBay selling one gram silver/gold bullion at affordable prices. The problem is one gram bullion is not one once bullion and the difference is huge. Most buyers don’t complain for one reason, embarrassment. It is very important to realize if a price of gold/silver is too good to be true it’s a scam, 100% of the time. No one will discount gold and silver in a market like today.
Private mints now coin gold, silver, and copper coins, as flawless as government mints. The confusing part is some rounds (coins) look like legal tender coins but aren’t. If you’re wondering how this is legal the answer is simple. The rounds are not minted exactly like legal tender coins and most sellers disclose somewhere that these coins are not bullion but rounds. The problem is most buyers assume they are what they look like unwilling to question. The copycat rounds are still made of gold/silver but they certainly aren’t worth government minted bullion.
Fractional rare coins are fun and easy to own. The problem is many fractional rare coins floating around today are not really rare or old. They are made of gold but are not coined by government mints. They are nothing more than black market rare coin replicas worth what ever scrap gold is worth. We advise all rare coins be examined by a reputable coin dealer or expert before investing your money. You may be asking why would someone go to the trouble to make a knock-off coin using real gold? Rare coins carry a premium over gold value with in the coin and sometimes this premium is 15% to 40% over spot gold.