Gold Scam 1 – Grading Games
With gold prices rising thanks to the economic and market chaos, the shiny yellow metal’s profit potential is drawing some unscrupulous gold scam artists out of the woodwork.
Here are five of the most common and most damaging gold scams out there right now — plus 3 safe ways to invest in gold.
The Coin Con: In gold coins, MS-70 is the top of the heap — a “mint state” coin that has never been handled. But what’s an easier way to increase the value of a coin than to lie about the condition? For instance, a 2002-W $50 Gold Eagle is worth $1,650 at a grade of MS-60 — a very clean condition, but not perfect. MS-70 for the same coin tallies a tag of $2,850. Unsuspecting coin buyers may not be able to tell the difference, thereby overpaying by hundreds of dollars.
Solution: Check the grades of coins with an independent source before buying. A reputable dealer will stand by his product and welcome a third-party appraisal. Just make sure that third party is of your choosing and not a rubber stamp on the dealer’s payroll.
