BEWARE OF BUYING GOLD/PLATINUM
I originally published this article on January 10, 2011. The price of gold has dropped about $400 and ounce since this article was published but the commercials have increased. A friend brought up gold in a message this week that prompted me to re-publish this and I will re-publish a second gold article that was also posted in January 2011 later. I still have my coins and they are worth less now. Maybe my great grand children will be able to profit from my mistakes but by then if our economy continues to sink a dollar will be worthless.
Is there anyone else sick and tired of all of the gold commercials on television? Old age and retirement has exposed me to watching more television for the last 16 years but I am sick of misleading gold hype.
One of the first articles I put on the blog was about my experience in buying gold and platinum American coins. If I remember correctly, three people read the blog. This updated version will hopefully make more people aware of the fact that buying gold is really easy. Selling the gold is another story the commercials neglect to address or tell you the whole story.
In my case my first purchase of gold coins was to help a friend. This person went to work for a company, located in East Texas, which sells gold and platinum coins. I advised this supposed friend that I has no interest in collecting this material for a long-term investment. My interest was to sell these assets when the nearly guaranteed increase was achieved. I was assured that selling these assets was as easy as buying them.
Within three months he contacted me to buy back some of the coins I had purchased. The price was a dramatic profit and I agreed to let them trade me coins of a greater value for the coins they wanted back. At that time it suckered me to increase buying more coins when I got calls of amazing prices that were sure-fire bargains. Now I have realized it is a method used to hook you. I only wish that someone would have advised me of this.
Fat, dumb and happy I purchased more “you can’t lose” offers from the supposed friend over the next few years. I watched the price of gold and platinum over double in value and I was so proud of myself for being so smart.
Obviously the value of these assets required a large safe deposit box for security that has costs involved over the years. I did not worry about this as every call from the seller reminded me of my gains.
Last year my bubble was busted when I called this friend and asked him to fax me the value of some specific assets and get prepared to sell them. After about a week and no fax, I called and he was not available. I asked them to have him return my call. Another week went by with no response and a second call had the same results. By now I knew I had been had. I sent several “E” mails with no response.
Next I contacted a gold buyer in Dallas about buying some of my coin sets. He was more than willing to pay me the spot price of gold and platinum with no value for the rareness or conditions of the coins and provided a written offer. As I could not get my friend to respond, I mailed him a copy of this offer and I finally received an offer to buy the assets. The offer was less than I had paid for the coins when the value of gold/platinum was half of today’s spot prices.
While in St. Thomas, American Virgin Islands, a few years ago I purchased a gold necklace for my wife. She had never worn this necklace as it was too heavy and uncomfortable. At that time gold was selling for less than $400 an ounce. This necklace weighs about 3 ounces. After all of the hype about buying just gold I decided to sell the necklace. I went to a gold buyer in Jasper Texas and the spot price that day for gold was $1430 an ounce. This would make the necklace worth over $4000. I was offered $940 for the necklace.
My message is beware of buying gold and especially coins which are always priced well above the spot price. After reading this message you decide to buy gold, especially coins, and think that selling them for what you paid for them is easy, I question your mentality.
For those who doubt my warning go see for yourself. I challenge you to buy a gold coin and/or a one ounce gold bar from your local or even a national gold seller. The next day try to sell it back at what you paid and you will see how much front end premium you paid. For the real doubters hold the items until the spot price rises then try again to sell the gold. I sincerely hope this message stops any urge to buy platinum or gold coins unless you are investing for a very long-term and the spot prices escalate at warp speed. Should this whet your desire to buy some gold or platinum coins, I have some I will sell you at E Bay prices..
Another tip, I have found a way to avoid the gold commercials on programs that I watch regularly. I record them on the DVR, then watch later and I can advance to eliminate the commercials. The gold salesmen are as arrogant as the lawyers constantly begging you to sue someone. C Brewer