SCAM WATCH: What is the Bait & Switch Sell?

gold secrets, buying secrets,Q: What does the bait-and-switch scam look like?

A: A lot of dealers will advertise a coin for less than the spot value or “at dealer cost.” But when you get them on the phone, they try to sell you a collectible or a rare coin at a 30% to 100% markup instead. The coins they’re selling are extraordinarily hard to sell back for anywhere near what they’re selling them to you for. Just ask them, “How much will you buy these back from me for?” It’s always a fraction of what they’re asking. Numismatics are collectible and rare by their nature. Many unscrupulous dealers deal heavily in the numismatic world, because values are not transparent. They’re able to build large margins into the price and make obscene profits while screwing the public.

The coins to look out for are the Kronas, the British Sovereigns, and other international fractional coins. These coins tend to be in really odd sizes, making them confusing and hard to compute in terms of value. An example of fractional coins could be: the coin is .4 ounces and 22 carat gold. How many ounces of gold is in that? Between the odd weight and the less than pure nature of the coin, most investors quickly get lost in the story and have no idea what the coin is even worth. This is a bad idea!

We recommend .9999 pure gold like a Gold Maple Leaf or Gold U.S. Buffalo. Or stick with an American Eagle, which is 22 carat gold, but still contains one full ounce of gold (The Eagle weighs just over an ounce because of the additional weight of the impurities. These impurities are intentional and make the coin more durable.). There’s no mystery about what you’re buying or what you have in your portfolio. These are very common, and they’re very easy to sell back to any reputable dealer for cash quickly and easily.