With the price of gold surging ever upwards, telemarketers are coming out of the woodwork and plying their trade.
First, they scare their listeners with tales of economic meltdown, evil banks, upcoming wars and anything else they can think of to make you nervous about your financial security.
Then they start selling you gold coins.
They don’t try to sell you bullion gold coins, because you can buy those for between a four and seven percent mark-up from a reputable bullion dealer.
No, they try to sell you collectible gold coins. And their prices include a mark-up up anywhere between twenty-five and a hundred percent.
How do they get their callers to ignore bullion gold coins and instead buy collectible gold coins at vastly inflatable prices?
They trot out the old story of how in 1933 Roosevelt’s executive order made it illegal for U.S. citizens to own gold bullion bars or coins. If you did, it was “confiscatable”.
They then go on to describe how Roosevelt’s 1933 executive order exempted “gold coins having a recognized special value to collectors of rare and unusual coins.”
Of course, they don’t mention that President Ford repealed the order in 1974. Nor do they consider that it is extraordinarily unlikely that a similar order could be made or enforced today.
They simply use fear to drive people into paying way over the odds for collectible gold coins.
The bottom line is – don’t buy gold coins through telemarketers. And don’t worry about your gold being confiscatable. Not going to happen.
Buy gold bullion from reputable dealers, and pay no more than seven percent in mark-ups.