Many gold investors become not clients of the coin dealers they hook up with but become victims of those firms. Over pricing of so-called numismatic and collectible coins is a major problem that Bill Haynes, president of CMI Gold & Silver Inc., has railed against for decades.
In the mid-1980s, he first wrote about these coin dealers’ practices in his hardcopy newsletter, Monetary Digest. His most famous piece, Myths, Misunderstandings and Outright Lies, is one of the most popular pages on this website. Today, Bill is not alone in warning against falling for telemarketers’ stories.
Telemarketers are under attack across the country. In some cases, government agencies have filed lawsuits. In other instances, private individuals are suing. In Texas, a major class action suit was filed against a consortium of firms. And, a member of Congress has gone on the attack.
Over the years, we have heard some absolute horror stories about people who have bought from telemarketers. Some suffered 50% loses the moment they wrote their checks. Telemarketer markups of 30% are in the low range; 70% are probably not uncommon; and, a few firms actually mark up their coins 100%.
Such markups are unconscionable, considering that gold bullion coins can be bought with premiums of 5% to 7% and even lower for large purchases.
We are hoping that the information on this page will alert investors to the dangers of buying overpriced coins.
Articles and Resources to consider:
- The Dangers of buying Gold
Advertisements promoting gold dominate the airwaves, touting gold as the ultimate investment, the place to be in these times of financial and economic uncertainty….more
- Myths, Misunderstandings and Outright Lies
Some gold and silver dealers foster the circulation of many myths, misunderstandings, and outright lies about the purchase and sale of gold and silver. Generally, these misconceptions and falsehoods…more
- PCGS, NGC Coin Grading Scam Alert
Trading on the reputations of the PCGS and the NGC grading services, telemarketers are heavily promoting graded U.S. Gold Eagles. CMIGS sees dangers in “slabbed” Gold Eagles and warns investors against buying those coins…more
How Reputable Are They?
Be certain to use the BBB in your community to research complaints against any dealer you may be considering doing business with.
Read more about CMIGS at the BBB
Use Search Engines like Google, Yahoo or Bing and add words like “fraud” “lawsuit” “conviction” “bankruptcy” to your searches for certain dealers. You might be surprised with what you find.
Be sure to find out who the owners and stakeholders are in the company you hope to do business with. The apple doesn’t fall far from the tree so be certain you are dealing with ethical people.
Have you had a bad experience with collectible coin dealers? You are not alone. Read Horror Stories from other investors like yourself.