2016-09-29 Thu

A collector bought 14 U.S. Saint-Gaudens Double Eagles in December 2012, minted from 1907 to 1933, which are considered to be the most beautiful American currency ever made. The collector bought gold for its value, not its beauty as she was concerned about the country’s financial system. She had earlier purchased shares of gold but only received a certificate in return.

Advertisers promoted that collectible coins were a better investment than bullion and she bought 14 coins. But 6 months later, the price of gold dropped more than $300. She saw that all the coins had different dates and were worn. When she could not contact the advertisers – Merit, she got to know from a local shop that she was charged $600 more per coin, and more than $8,000 in total. This has been the case for many more collectors like her who have been fooled by shady gold and silver dealers.

During the Great Recession, the price of gold increased and peaked in 2011. But the prices came down as the economy recovered. In 2016, gold prices increased 25 percent after Brexit vote results.

Apart from bulk metal, valued by weight, and cast as bars, ingots or coins, investors are also looking at collectible coins as they have a historical value and are usually sold by trusted dealers. But experts warn that investing in collectors can be dangerously deceptive.