Last week, I received an email from Larry—a thoughtful investor who made a decision five years ago that many of you have made or are considering: he bought precious metals to protect his wealth.
Larry had the right idea. He recognized that gold is a store of value, a hedge against uncertainty, and a tangible asset in an increasingly digital world. He did his research, set aside $186,000, and took action.
But five years later, Larry discovered something that left him frustrated and disappointed: while his decision to buy gold was sound, the company he chose to buy from had cost him dearly.
Larry’s Story
In March 2020, at the start of the COVID pandemic, Larry purchased 60 Pre-1933 $20 Gold Liberties and Saint Gaudens coins for $186,000. That’s about $3,100 per coin—roughly double the spot price of gold at the time.
The dealer told him these coins were:
- Rare collectibles that would appreciate independently of the gold market
- Tracked by the “PCGS 3000 Index,” a separate bull market for numismatic coins
- Protected from government confiscation, unlike modern bullion
- A smart investment for the “upper 1%” who knew better than to buy regular gold coins
It sounded compelling. Larry trusted the dealer and made the purchase.
Fast forward to today. Gold spot is around $4,000 per ounce. Larry’s 60 coins (58.05 troy ounces total) are worth approximately $232,200 at spot—or about $227,500 if he were to sell them back to a dealer.
His gain? $41,556, or about 22% over five years.
Now, here’s the part that stings: if Larry had bought the same dollar amount in standard bullion—Gold Eagles, Buffaloes, Canadian Maple Leafs, or gold bars—at fair premiums, he would have purchased 118-120 ounces instead of 58.
Today, that would be worth $456,000-$480,000—a gain of $270,000-$294,000.
Larry didn’t make a bad decision. He made a great decision with the wrong partner.
What Went Wrong?
Larry was sold a story that mixed truth with manipulation:
The PCGS 3000 Index Exists—But Not for His Coins
The PCGS 3000 Index is real. It tracks the top 3,000 most expensive rare coins in the world—ultra-high-grade numismatic rarities worth tens of thousands to millions of dollars each.
Larry’s common-date Pre-1933 coins are not in that index. They track very close to spot gold, just like bullion. Only truly rare dates in exceptional grades (MS-65+, key dates, proof coins) appreciate independently as collectibles.
The dealer used a real index to create a false impression.
The Confiscation Myth
Yes, in 1933, the government exempted “rare and unusual” coins from the gold recall. But that was 92 years ago under completely different circumstances.
If the government wanted gold today, they’d simply change the rules. Using fear of confiscation to justify 100% premiums is manipulative—and it preys on legitimate concerns.
The Premium That Didn’t Pay Off
Larry paid double for coins that have performed exactly like bullion with a modest premium. The “rare collectible” story didn’t hold up because the coins were never rare to begin with.
The Right Idea, The Wrong Dealer
Here’s what I told Larry—and what I want you to know:
You had the right idea.
Buying precious metals is a smart, time-tested strategy for preserving wealth. Gold and silver have been stores of value for thousands of years, and they’ll continue to be long after we’re gone.
If you’ve bought bullion at fair premiums, you made a great decision. If you paid more than you should have, you still own real metal that will appreciate as gold and silver appreciate. The premium you paid is sunk, but the value of the metal itself is very real.
But not all dealers are the same.
Some dealers use fear, pressure, and misleading claims to justify inflated premiums. They sell “confiscation protection” and “rare collectibles” that are neither rare nor protective.
Others—like us—focus on getting you the most metal for the fewest paper dollars. No gimmicks. No fear tactics. Just honest markups and transparent guidance.
What I Told Larry
I advised Larry to hold his coins and start dollar-cost averaging into lower-premium bullion going forward.
Why? Because selling now locks in his loss. The premium he overpaid is gone, but the gold itself is still valuable and will continue to track the gold market. His 58+ ounces will appreciate as gold appreciates.
My advice: keep what you have, get past the feeling of betrayal, and start building a better position with smart, low-premium purchases—Canadian Maple Leafs, Austrian Philharmonics, gold bars, or silver at close to spot.
Over time, he’ll rebalance his portfolio naturally, and those 58 ounces will appreciate right alongside his new purchases.
What We Do Differently
At CMI, we don’t sell fear. We sell metal.
- We prioritize ounces over brand names. While US Eagles and Buffaloes are top-of-the-line products, they cost a bit more. We’ll always recommend lower-premium options unless there’s a special that makes US Mint products competitive.
- We don’t use high-pressure tactics. Our brokers are family and friends, not commissioned salespeople. We educate, not manipulate.
- We sell Pre-1933 coins at honest premiums—typically just 3% over our cost. We’re not numismatists, and we don’t authenticate collectibles. We simply help you get metal at fair prices.
Our job is to get you the most gold or silver for the fewest paper dollars—not to upsell you on premium brands or imaginary protections.
Your Story Matters
If you’ve had an experience like Larry’s—or know someone who has—I’d love to hear about it.
Maybe you paid too much for “rare” coins that turned out to be common. Maybe you were sold on confiscation protection or a separate bull market that never materialized. Maybe you’re just starting to research precious metals and want to avoid these pitfalls.
Your story can help others make better decisions.
Share your experience in the comments below, or give me a call at 800-528-1380. No pressure, no sales pitch—just honest conversation.
Because at the end of the day, you had the right idea. You just might have chosen the wrong dealer.
And that’s something we can help you fix.
6 Responses
CMI is an unquestionably top-shelf dealer to to business with. I have been transacting with them since about 2003. Years ago there was only one shipment of Maple Leafs that were not in the best condition. I didn’t want to be bothered with having to repackage them and go back to the Post Office (10 miles away) so I didn’t say anything and kept them. When I sold them back a couple of years later I got fair market for them but it was noted on the purchase order that the coins were dinged and scratched. They got back exactly what they sent to me. I relate this incident to say this: If I had initially complained about the condition of the coins would CMI have made good on the order? I have absolutely NO DOUBT THEY WOULD HAVE. I just didn’t want to deal with having to send them right back.
Johnny’s advice regarding numismatic grade coins is spot on. That whole arena is rife with subjective measures of valuation. Put your money in tangible gold bullion – the value of rarity is highly subjective.
They are good, honest people at CMI. You can deal with them with the utmost confidence.
I started considering buying precious metals in 2006. I knew absolutely nothing about PMs at the time, but during my research, I was lucky enough to stumble upon CMI’s website. The information on this site, along with the linked articles, proved invaluable. I learned to avoid “slabbed” coins and numismatics and focus strictly on coins and bullion. Disclaimer – While I have never purchased from CMI, I did make a phone call in 2006 because I had several questions. The representative talked with me for over an hour, addressing my every concern. No pressure, no BS. During that call, I told him I was considering purchasing 1 oz. Krugerrands, and he offered Perth Mint Lunar Series 1, Year of the Horse coins for the same price. I don’t remember why I didn’t, but I should have jumped on that offer! Bottom line, I’ve seen several metals dealers come and go in 20 years, but CMI is still around because they’re legitimate and honest dealers who won’t try to sell you overpriced junk. Thanks to CMI, I have done very well with my PM purchases!
Johnny;
Thank you for helping me save money and receive gold at a lower price. Everything you said is true and when I buy gold or sliver it will be with you. I have bought from you two times and will continue.
Thanks,
Joe
Thank you Joe, We sure appriciate the kind words and especially your business.
Hello Tom, Thank you for your kind words. Please let us know how we can make your last liquidation right. I am going to check into it and see what I can do on our end.
Len, Thank you so much for your kind words. We truly take pride in getting as much metal into the hands of fellow Americans for the fewest paper dollars.