You see the ads for this kind thing on the cable channels in the wee small hours of the morning. Buy gold or silver as a hedge against bad economic times. But many of the companies touting gold or silver are really only making one entity rich: themselves.
Here’s what you need to watch out for:
- The Bait Frequently, these companies use deceptive marketing to make you think you’re getting gold or silver at only a slight mark-up over the current market value.
- The Switch Once you are actually speaking with a salesperson, they will try and switch you to investing in “collectible coins.” You’re told that these are appreciating much faster than gold or silver.
- The Catch Often you will be sold coins at a markup so high, you will never recover what you’ve paid.
One of the oldest adages in investing is true here – invest in what you know. If you don’t know about collectible coins, don’t invest. Or seek out a local expert in your area and consult with them face-to-face.