Thinking you would like to try purchasing rare coins? Does gold seem like a good investment to you?
Buying rare coins or putting your money into gold coins can pay off sometimes, but it can also be a risky business. You can help protect yourself by taking some precautions. Hereís some advice, based on recommendations from the Federal Trade Commission.
We know: 7 Rules for Buying Rare Coins
Rule 1: LEARN AS MUCH AS YOU CAN
If you want to make money from buying rare coins or bullion coins, it pays to study, and know something about the business. Take your time. Learn to understand important elements of the industry such as rarity, grading, marketing availability and price trends.
Rule 2: USE COMMON SENSE
If you receive solicitations in the mail or over the phone that seem too good to be true, they probably are. Donít rush into anything.
Rule 3: CHECK OUT THE SELLER
This is not an easy task. Many fraudulent sales organizations look very much like the real thing and itís hard to tell the difference merely by talking with them over the phone. Even visiting the office can be deceiving because dishonest folks often rent expensive office space. Find out if the dealer is a member of any profession organizations, and then call to see if itís true.
Rule 4: DONíT COUNT ON PROMISES
Many dealers promise to buy back your coins at or for more than the price you paid, or tell you that grading is guaranteed. Many coin dealers do not have the financial resources to make these claims.
Rule 5: COMPARISON SHOP
Talk to several dealers before you buy, finding out about both the grades of the coins and the prices. Check prices in leading coin publications.
Rule 6: TAKE POSSESSION OF THE COINS
Take possession of any coins you buy. That way you can ensure they exist, double check their value and grade, and make sure theyíre properly stored.
Rule 7: GET A SECOND OPTION ON COIN VALUE
Check out the companies return policy and make sure you have an opportunity to return the coins within a specified amount of time. Also, be sure if you return the coins, you get all your money back. Then, as soon as you receive your coins, get a second opinion from another source about the grade and value of the coins.
NEED HELP? If you get into a suspicious situation, check with the American Numismatic Association, the Professional Numismatists Guild or the Federal Trade Commission.