Special Report: Avoid Gold Coin Scams: Safe Ways to Buy Gold Coins

Russia and China are pouring billions into gold to diversify away from the US dollar and the euro.

George Soros, John Paulson, Marc Faber, Ron Paul, Peter Schiff — they have all spent the past year preaching the reasons investors need to protect themselves from the government "elitists” by owning gold...

If you have any lingering doubts about the importance of investing in precious metals as a way to protect your wealth, check out this chart:

gold price historic chart

With QE3 and the Fed's mortgage-backed security purchases totaling $85 billion per month with no end in sight, there's even more incentive for investors to hedge inflation and invest in something with tried-and-true returns. Precious metals are soaring, setting historic records once again.

As always, public interest in owning precious metals surges in tough economic times.

Further doses of quantitative easing have millions of people fearful that their hard-earned cash will soon be worthless. Millions of Americans have taken their savings out of banks.

Peter Schiff has even opened a gold bank, encouraging individual investors to “put yourself on the gold standard” — even if the world has not yet accepted a return to a gold standard. Americans aren't able to invest in Schiff's bank quite yet, due to governmental red tape.

Gold mining strikes, quantitative easing, as well as the banking and debt crises are all impacting gold prices in a positive way — that is, if you're a gold investor...

One by one, investors are hedging the decreasing value of the dollar with gold coins and gold bullion.

But you must be careful not to get caught up in the buying frenzy without doing your homework. Not everything that shimmers is gold — and you can't afford to turn a blind eye to the counterfeiters and swindlers out there.

Don't let a company take advantage of you and your wealth. Let us help protect you and your savings.

Scammers have made millions off of naive investors who fell victim to dishonest coin dealers in their search to protect their wealth with physical gold...

Coin dealer Robert Early Grundy from Minneapolis was recently fined $295,000 and ordered to pay his customers more than $409,000 after engaging in multiple fraudulent sales. The lawsuit has yet to be settled.

There are hundreds upon thousands of cases just like this. Some go unnoticed and some are never resolved.

Don't be one of those cases. Beware of random Internet search engine results. Learn how and where to find reputable sources.

Here's how you can most effectively ensure sure you don't fall into the counterfeit trap...

10 Tricks to Avoid the Counterfeit Trap

  1. Be skeptical of ALL unsolicited phone calls about investments from offshore salespersons or companies with which you are unfamiliar.

  2. Do you homework and due diligence. If you don't do your homework, you could pay the price later. Look at seller feedback and forums if possible. Inquire about ALL fees and commissions to be charged, and make sure you fully understand the basis for each of these charges.
  3. Use only reputable dealers. If the firm aims to coerce you into wiring them cash immediately, proceed with caution. Steer clear of any company that boldly guarantees large profits with no financial risk.

  4. Insist on seeing the certification. Be sure you get all the information about the company — and verify that data. Use a reputable third party to verify company's reputation.

  5. Demand only stamped and minted precious metal products for small amounts. When buying small amounts of bullion, only choose those bars that are stamped and have serial numbers.

  6. Pay attention to impartial grading. When purchasing bullion via the Internet, ask for documentation on the impartial grading of the bullion products. Legitimate dealers should have this form of certification. Check with an independent source before buying; make sure the third party is not on the dealer's payroll.

  7. Analyze the slabbing. Make sure the slabbing and the coin go together. Fake gold generally does not include slabbing. Be wary of overly ornamental plaques or layers of plastic packaging your precious gold product and preventing you from adequately inspecting the piece.

  8. Test using a magnet. True gold is not magnetic and therefore should not react to a magnet at all. If it does, it's fake.

  9. Seek expert confirmation. Before finalizing the sale, contact the CFTC (www.cftc.gov) or other authorities specializing in consumer protection.

  10. Evaluate complaints and negative feedback about your dealer carefully. When it comes to your dealer, don't risk even a single bad review mentioning fake gold. Find another dealer instead.

A few sidenotes:

  • If you buy gold coins with the intention of reselling them later, be aware that numismatic ones will be more difficult to resell because they are typically only of interest to collectors, not everyday investors.

  • The most popular bullion coins are American Eagles and Buffaloes, Canadian Maple Leafs, South African Krugerrands, Austrian Philharmonics, and Chinese Pandas. If you want to maintain the value of these coins, keep them in their original packaging to avoid physical damage.

  • Make sure you know how the gold is weighed. Gold is predominately measured in troy ounces on the international market. Spot prices are virtually always in troy ounces as well. It is not the same as a standard ounce. A single troy ounce equals 1.0971 standard ounces or 31.1035 grams.

  • Become acquainted with the tax implications of gold investments. The Internal Revenue Service actually considers gold coins a collectible as opposed to an investment. This is great news for you because that also means that you won't be expected to pay the usual capital gains tax that are applied on other investment options. This is just another reason investing in gold is a sure way to preserve and grow your wealth.

Gold is undoubtedly the world's most liquid reserve in times of economic strife and uncertainty.

As the United States continues in a relative decline, the number of counterfeit gold sales are going to skyrocket in accordance with the sales of true gold.

Frauds especially know how to take advantage of the laws of supply and demand. Now more than ever there are crafty and unscrupulous gold scammers waiting to lure you in and take you for everything you're worth.

But you certainly don't want these crooks to hinder your purchase of the best form of wealth insurance the world has to offer.

The longer you wait to invest, the more risk you'll run into as supply dwindles...

Back in 2008-2009, at the height of the financial crisis, gold coin demand soared so quickly that the national mints were unable to produce coins fast enough.

Marc Faber warns we're not only approaching a fiscal cliff... we're going to run straight into a “fiscal Grand Canyon” if our central bankers don't come up with monetary policy that doesn't involving quantitative easing and mad-money printing...

To hedge the coming crisis (expected to be far worse than that of 2008), investors will be flooding the gold market instead of accepting the Fed's worthless "Monopoly money."

As demand surges, a supply crisis even more intense than the one the mints experienced back in '08-'09 will ensue. Trying to make a quick buck, gold scammers will seize that opportunity to try to sell you fake gold coins.

Don't fall for their tricks!

Use the checklist provided in this report, and use the additional resources attached to ensure you're buying gold coins with the most limited risk possible...

And if you're a first-time buyer, take a look at the Better Business Bureau's list of company profiles before conducting business with a good gold firm.

To check out other scams, reviews, complaints, lawsuits, and cases of fraud before you make a big buy, take a look at Ripoff Report.

For a more detailed, in-depth look at how to safely buy gold coins, you may be interested in Mike Maloney's #1 best selling precious metals book, Guide to Investing in Gold & Silver.

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