Marketers are now having coins dated 1986 and later certified as Mint State by those two organizations, and investors think they are buying real collectibles.
Fort Worth, TX (PRWEB) April 23, 2014
Rising gold prices have spawned legions of gold dealers, some of which are reputable and some of which are not. GoldCoin.net spokesman Keith Kelly believes certain gold coin dealers are taking advantage of individuals’ fear and lack of gold coin market knowledge to sell gold coins that are essentially bullion at hundreds of dollars over the gold spot price.
“Informed investors know that pre-1933 gold coins that have been certified as Mint State by either the Professional Coin Grading Service (PCGS) or the Numismatic Guaranty Corporation (NGC) can be extremely profitable,” Kelly said. “Marketers are now having coins dated 1986 and later certified as Mint State by those two organizations, and investors think they are buying real collectibles.”
Kelly says PCGS came about due to a need in the coin collecting community. “PCGS created the standard for rare coin grading so there were no grading biases or cheap tricks. People associate PCGS with rare gold coins,” said Kelly. “The only problem is that most rare gold coins go up to 65 or 66 on the Sheldon scale, but naïve investors see MS69 or MS70 coins and think they’re getting a deal.”
On the contrary, says Jones, such highly-graded coins are in great condition only because they were minted in the last 20 years. “A coin that young should be in perfect condition, so there is no rarity value there. People buy these coins at $500 over spot and find out after the fact that they can sell the coin for spot or maybe a few dollars more.”
Gold Coin (GoldCoin.net) has over two decades of experience advising household investors on smart physical gold and silver investments and gold coin IRA and 401k plans. They buy and sell all types of precious metals and offer free home delivery. For more information or a free Gold Coin Starter Kit, visit http://www.goldcoin.net or call 1-800-425-5672 today.