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3 Quick Ways to Tell if a Coin Dealer Has Your Best Interests in Mind

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3 Quick Ways to Tell if a Coin Dealer Has Your Best Interests in Mind

 

Whenever you embark on a new venture, there’s always a certain level of skepticism and trepidation. This is especially true if you’re interested in pursuing a substantial investment that you hope will pay off at some point in the future. It seems like everywhere you turn; someone is trying to sell you something. The process at times can be overwhelming, and for some folks, becomes so much so that they suffer paralysis through analysis.

The same can be said for the coin and bullion industry. If you’re just getting your feet wet and beginning to research options, you’ve no doubt seen a substantial amount of conflicting information. How then, are you able to determine if the coin dealer or broker you’ve been communicating with has your best interests in mind.

In today’s article, we’re going to highlight three “don’ts” to help narrow down the list of options from a large field so that you can improve your chances of success when investing in gold or silver coins and bullion.

 

They Don’t Recommend Coins Without Comprehending Your Situation

A coin dealer that truly has your best interests in mind won’t provide any recommendations until they have a clear picture of your goals and what you’re trying to achieve. This means asking basic questions, such as if you’re primarily an investor or collector, if you’re looking for stability or upside potential, if you’re interested in the least expensive or most recognizable options or if you intend to keep the investments for the long term or pass them down to your heirs as generational wealth. Other common questions are whether you plan on using or liquidating your holdings during your lifetime, if they are meant as traditional investments or to be used for unconventional purposes, such as bartering.

Furthermore, there’s a difference between gold, silver, platinum and palladium. It’s important to understand what factors cause the price of these metals to move, which are the most stable, have the most upside potential, or are used primarily for industrial purposes.

It may not be realistic for your coin dealer to ask all these questions, but if they at least ask a few before providing recommendations, you may be on the right path.

 

They Don’t Make Unsolicited Phone Calls with Regular Coin Deals

Personally, there’s nothing I hate more than telemarketers. If I’m interested in pursuing an investment or purchase, I’ll reach out to the company when I have time or have questions. Occasionally, I’ll ask for some guidance, follow up phone calls or emails, but any hard sell approaches by a salesperson is a complete turnoff.coin dealer unsolicited calls This reminds me of time share presentations. If you’ve never had the displeasure of sitting through one, do yourself a favor, and avoid them at all costs regardless of the promised gift(s).

That being said, you may have established a good rapport with a coin dealer, who understands what you’re trying to accomplish. You may also be in the market for specific types of items that are in short supply or only occasionally come to market. If that’s the case, and you’ve given your coin dealer permission to reach out to you in these circumstances, that’s perfectly fine. In fact, it may end up being a win-win scenario. They’re able to move some product and you’re able to acquire items that are on your wish list.

In most cases (not all), unsolicited phone calls from coin companies are for high margin items that offer the salesperson the largest commissions. Rarely do coin dealers hire salespeople to sell low margin bullion items to prospective customers, as these items sell themselves. In most situations, these are the types of coins that best serve the customer and what they’re trying to accomplish.

 

They Don’t Attempt to Push High Premium Numismatic Coins

We see it time and time again. We meet with the heirs of an estate coin collection and dash their hopes and dreams, as the value of their items is only worth a fraction of what the original investor or collector paid for the items. We saw this recently when a retiree reached out to us interested in selling a collection that she bought from a telemarketer two years prior. Based on our estimation, she paid eight times what the collection is worth.

These sales tactics should be illegal, and in fact, in some cases are and have resulted in the authorities shutting down companies, but not before some unsuspecting customer is out tens of thousands of dollars, if not more. Without exception, when we see these situations, the investor purchased overpriced numismatic coins even though they weren’t coin collectors. In fact, many people that purchase these coins know so little about them that they have a tough time describing the coins that they purchased.

We share this information with you so that you don’t find yourself in a situation where you’re pressured to purchase an item that you’re unfamiliar with. If the item the telemarketer is trying to sell you sounds interesting, do yourself a favor, buy yourself some time and do some independent research to see if this is an item worth pursuing and adding to your portfolio. More times than not, you’ll find a comparable item that is less expensive.

On the other hand, you may be a coin collector and are interested in numismatic or collectible coins. If this is the case, you’re familiar with the market, and the value of these coins, you should be able to quickly identify decent opportunities when you come across them.

 

Summary

In conclusion, we’ve shared with you three approaches from coin dealers that should raise red flags. If a coin dealer begins to recommend specific items without knowing your goals and what you’re trying to accomplish, they almost certainly aren’t looking out for your best interests. Furthermore, coin companies that constantly call trying to sell you something probably aren’t selling you the type of items that fit in your overall investment strategy.

On the other hand, you may need some guidance, assistance or be in the market for particular items. In that case, if you have a coin dealer that is willing to assist, and you’ve given them the greenlight to reach out to you when they have something valuable to offer, then it may end up being to everyone’s benefit.

Lastly, unless you’re a coin collector, avoid overpriced numismatic coins. The only returns that are guaranteed in this scenario are the fat commission checks that the salesperson is receiving. Unfortunately, it’s not uncommon for an investor to pay many times the market value of the items, which they’ll never be able to recoup in multiple lifetimes.

We hope that these guidelines are helpful and welcome you to contact the coin and bullion experts at Atlanta Gold & Coin Buyers. While we carry all types of coins, including numismatic coins, we never recommend any products that are contrary to what an investor is trying to accomplish.

We look forward to hearing from you and earning your business.

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Picture of Tony Davis
Tony Davis
Tony Davis is the owner of Atlanta Gold & Coin Buyers, a full service Atlanta based coin and bullion dealer specializing in buying, selling and appraising coins and coin collections of all types and sizes. Tony frequently writes on various economic and numismatic related topics affecting the coin and bullion markets and has been published on some of the industry’s leading websites, including Coin Week, the American Numismatic Association, Coin Collector, Coinflation, and Coin Auctions Help, just to name a few. Visit Atlanta Gold & Coin’s website at atlantagoldandcoin.com to obtain additional information on the products, services and educational resources offered by his company. Tony can be reached at sales@atlantagoldandcoin.com or at 404-236-9744

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