![]() ![]() They have no numismatic value.” Don't buy using leverage.īorrowing money (also known as buying on margin) to make a bigger investment in gold is a risky game. ![]() In fact, Freedman says, “there were millions and millions of gold coins minted in the 1800s and early 1900s that were simply coin of the realm. So notwithstanding the paranoia-laden pitches of some salesmen (and right-wing radio hosts), there is no danger of gold confiscation.įurther, the confiscation sales pitch is usually based on a very broad definition of “rare and unusual coins.” “They’ll say anything minted pre-1933 has numismatic value,” says Michael Freedman, president of Euro Pacific Precious Metals. And the limit on gold ownership in the U.S. is no longer on the gold standard and hasn’t been since 1971. However, some gold dealers use these facts to scare investors into buying overpriced coins. People who did turn in their gold (many just kept their gold, and no jackbooted gold police kicked down doors at midnight to collect a single coin) received $20.67 an ounce. (The gold standard was a system under which the dollar was equal in value to, and exchangeable for, a specified amount of gold.) And yes, Executive Order 6102 exempted rare and unusual coins from having to be turned in. citizens because the bank panics of that year and other factors were draining the Federal Reserve’s gold supply, and we were on a gold-based currency standard back then. Yes, it is true that in 1933 President Roosevelt issued an order to collect gold from U.S. "In some cases, these are outright scams and no gold exists," Brown says. “It surprises me, the number of people who will go ahead with a sale when dealing with someone who has already violated the Do Not Call list,” she says.Īlso, these outfits don’t give you physical possession of the gold, but claim to hold it for you in a vault. (A boiler room is filled with salespeople who cold call prospects and use high-pressure sales tactics.) Dama Brown, staff attorney for consumer affairs in the FTC’s Atlanta office, says that these operators usually make inflated claims about the potential profit from gold, such as “tripling your money in 30 days.” Such claims are often coupled with warnings about the weak economy and how gold, as a hard asset, is less risky than stocks, she says.īrown says your first clue that these aren’t calls from legitimate sources is if your phone number is in the National Do Not Call Registry but the gold salesmen call anyway. The Federal Trade Commission reports a rise in boiler rooms hawking gold coins or bars. Don't buy gold from a cold caller over the phone. The only real reason to own them is if you believe in a future meltdown of society, at which point paper money will be worthless and you’ll need small (gold) change to buy, say, ammo, freeze-dried food or a latte. You’ll pay a higher markup for such coins than for one-ounce coins. These coins come in fractions of an ounce, such has a half-ounce, a quarter-ounce and even one-twentieth of an ounce. So, for investment purposes, stick with regular coins. The premium you pay for proof coins may be inflated and may disappear, depending on the market. Proof editions are usually valued more highly than regular coins - by collectors. The dies used to make them are often finely polished and yield particularly pretty coins with mirror finishes. Proof coins are special editions struck for collectors and often mounted in a special case. In addition to the American Gold Eagle, the best-known coins typically bought and sold for their gold value alone are the Canadian Maple Leaf, the Australian Gold Nugget and the South African Krugerrand. For example, Goldline and some other dealers push a French gold coin, the 20-franc “Rooster.” Weiner says Goldline charges 69% more than the melt value of the Rooster, which has no numismatic value. Representative Anthony Weiner (D-NY) for the high markups it charges on such coins. Goldline International, a major dealer, has come under fire by U.S. ![]()
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