Rare coin and gold sellers should be wary of fly-by-night dealers
The economic recession caused standard currency to quickly lose value, and, as a result, many Americans began purchasing gold and rare coins in an attempt to fight inflation. Now, some are capitalizing on the rising value of precious metals and trading their coins and gold in for big profits.
According to the Los Angeles Times, sellers need to be wary wary of shady fly-by-night vendors that take advantage of inexperienced collectors. These dealers, who often work out of a hotel or other temporary space, will promise premium prices but not deliver on their guarantees, asserts Jerry Jordan, an investigative journalist who has been tracking unscrupulous vendors.
“They routinely offer pennies on the dollar,” he told the source. “They have an internal motto: If the customer is not educated, do not educate them.”
That doesn’t mean all dealers are to be viewed with suspicion, however. Consumers just need to do their research wisely.
Some rare coins can sell for hundreds of thousands or even millions of dollars to legitimate vendors. Last month, for example, a rare 1794 silver dollar was sold for more than $100,000.