Words spoken by Robert White, an appraiser, who checked out the inventory Nola Cronk had just acquired from  Capital Gold Group. Cronk approached an appraiser after having a hellish battle with what she thought was a move to protect her retirement.

Nola Cronk’s husband had passed away, and unfortunately he was the one who took care of finances, so she was soon left to her own to find the right place for the wealth she had left. She expressed interest in Capital Gold Group who quickly took advantage of this vulnerable client. They first asked for her financial records, assuring her after viewing that she need to act quick and move over $300K into gold. Then the broker who spoke with her over the phone, soon received a signed contract and a done deal through persuasive tactics that left Cronk seemingly helpless. Even when her buyer’s remorse kicked in and she asked to lessen the investment amount, she was met with, “You’ll either buy it or we’ll take you to court and we’ll get everything you have.”

Had Cronk or her family members known about Peter Schiff’s latest Gold Scam Report and/or this blog it may have prevented her from such a travesty. There are a few preventive measures that one should take when faced with a situation like hers.

From the sound of the broker she was dealing with on the phone, she should have been tipped off right away that something was fishy. His persuasion tactics and downright unsatifactory customer service is not something anyone should tolerate when investing in precious metals. This is your life savings and livelihood and should be handled with care, and by a caring person.

Also, before you decide to invest in precious metals, sift through your options. Nola Cronk knew she had some retirement money to invest, but what she needed to know was where are a few places that this could safely go? Finding the type of bullion you are looking for, for instance: American Gold Eagles or Canadian Maple Leafs, and having specific requests in mind will keep you from receiving offers about metal you are not familiar with.

What would seem to be no-brainers can easily be looked over when making a huge decision about investing. Your adrenaline is pumping, your mind overflows with questions, and your hopes and dreams lay in the distance, in hopes to be acquired after your successful financial decisions. In your head you are not thinking to ask the broker if you can record the phone call, what the return policy is on the physical metal, and you’re probably not thinking to Google the man or woman you are speaking too. Well today is the day you begin to make that mental check-list. If your over-the-phone-broker does not grant you the wishes you desire, in order for you to feel confident in your purchase, you are most likely buying from the wrong dealer.

Nola Cronk was eventually sent her precious metal, however not in the way she expected. She’s taken the Capital Gold Group to court, and they’ve been required to pay her in the sum of $67,000…however that money has yet to arrive. Don’t be another Cronk when making the decision to preserve your wealth in precious metals. Read the Gold Scams Report and share her story as well as the steps to smart gold buying!

When it comes to silver investments, purchasing high grade silver coins at 99.9% purity is the go-to business but do you know that people who buy junk silver can also benefit from participating in the industry? Junk silver coins are those that have been minted prior to 1965 and contain 90% silver. While they are not as valuable as pure silver coins, the high percentage of silver in these coins still merits enough attention to be considered a worthy investment.

For those who are unable to buy 99.9% silver coins, here’s a great alternative. There are actually quite a lot of these “junk” silver coins floating around, such as the Kennedy half dollar, Barber dimes, quarters, and half dollar coins, Mercury dimes, and silver dollars. Here are some tips and reminders to help you pinpoint which silver coins you should watch out for.

1. Nothing can be done properly without some degree of knowledge. Going in blind will mean the possibility of buying the wrong type of silver coins, or wavering over whether or not to buy junk silver coins. Someone could come and snatch up the silver coins if you show indecisiveness, and that would mean a lost opportunity for you. To help you out, look for silver coins minted prior to 1965, as they contain 90% silver and are good options. Some examples are Franklin half dollars, Walking Liberty half dollars, Barber head quarters, and Mercury dimes. If you concentrate on these silver coins, you’ll have an easier time focusing on a long-term plan instead of getting caught up with too many details.

2. Practice calculating the value of silver coins. The formula is simple. All you have to do is multiply silver content by the spot price. For instance, with 1964 Kennedy half dollars, you can multiply the silver content, which is 0.36169 by the spot price of silver at the time. Assuming a spot price of $40 an ounce, this coin is worth $14.47. Practice makes perfect, but before you know it, you’ll be well on your way to calculating accurate silver prices for your junk silver coins.

3. You’ll also notice once you start making the rounds that prices for the junk silver coin are commonly based on a multiple of the face value of the coin. Confused? At first, it can be difficult, but here’s an example: if a silver dime is selling at a face value of 30, you would multiply the face value of the dime (.10) by 30 to arrive at $3.00. One tip would be to ask the coin dealer to explain how he calculates his rate. If he has nothing to hide, he will explain it without hesitation.

4. As a buyer, you should also know that the face value quoted typically applies the same to dimes, quarters, and half dollars; however, it’s common for the face value quote of silver dollars to be higher. This means that whether you are purchasing half dollars, quarters or dimes, it will always be in reference to the “prevailing” face value which in turn is based on the silver price.

5. Now that you have an idea of how the market works, you can start looking at potential junk silver coin bargains. You can buy junk silver coins in smaller lots or in bulk, such as $100 and $1,000 face value bags. A bag of Kennedy half dollars in $1,000 face value bags at 30x face value will cost you $30,000 to purchase. Consequently, for an increase in face value rate to 30.5, you’ll receive a $500 profit on your investment.

..If you’re unable to find a coin dealer locally that you’re comfortable with, don’t hesitate to go online to find a reputable coin dealer from whom you can buy junk silver coins. Just remember to calculate the silver value of the respective coins prior to buying junk silver coins so that you can approach your purchase with reasonable expectations.

Originally posted here. 

This holiday season, I came up with a not-so-original idea to buy (or give from stock) silver* as my trademark gift. Not only is it an educational tool that brings up questions about investing and the future of the dollar-based system, but it’s also worth a nice chunk of change. As we speak I’m packing for a family get together where I’ll be presenting my father with a nice 1 oz. bar of silver. It’s worth cash if he wants to cash it in, possibly even more cash if he wants to hold on to it for a while, and is a great collector’s item if he chooses to see it that way. I’m sure he will be thrilled!

The average spending habits of individuals, around Christmas, add up to about $650. If you take today’s silver prices and divide that up, you’ve got a gift for over 20 people on that list. Just think, people are getting gift cards, scarves, new socks, and toys (all wonderful and thoughtful, of course) but when they open your gift, even if they don’t appreciate it in the moment they’ll hopefully realize soon enough that you’ve given them something to learn from.

Let’s not forget though, with the economy at its worst in decades, there will surely be deals on silver out there that are so good you should avoid them. An article I recently read offers up the great idea of buying your silver or gold through a local coin shop. I wholeheartedly agree that having your precious metal physically in your possession after the transaction can be soothing and exciting! However let’s not discount the growing popularity and convenience of online shopping. Buying expensive items online can feel like risky business, however with the secure pay options and things like PayPal, your $650 in silver rounds should be a safe precious metals buying experience.

One thing to make note of…be sure that your online bullion dealer delivers to your house. Do not purchase gold or silver for someone for Christmas if it’s going to be held in a vault or account somewhere. First, because it’s tacky to not have the gift present, and second, because one little round probably won’t be enough to have its own safety box. A company that offers to hold the PM’s while issuing a certificate should be checked out thoroughly to make sure the metal is actually in existence.

The good thing about online bullion buying is the lack of salespeople pulling you in different directions over the phone as you make your purchasing decisions. However, beware of websites with red flags like “confiscation proof” labels or hype over a government-issued collector’s coin. Before your start hunting for the best deals on your silver gifts, find the scams out there before they find you; dig into Peter Schiff’s Gold Scam Report that will make your gift buying holly-jolly like the rest of the season!

Believe me, your friends and family will love the gift that keeps on giving!

Happy buying,

Megan

*silver can be replaced throughout this article for gold, however you’ll be spending a WHOLE lot more per person!

Now I usually do my dealing face to face with a local bullion shop, but just as Christmas shopping isn’t always done in a store anymore, neither are all precious metal purchases. Many friends and associates have mentioned the gold and silver buying options on eBay, Craigslist, and Amazon. Turns out it serves the same purpose as shopping for clothes online: it’s convenient. You don’t have to leave your chair. However, when factoring in the shipping, you are most almost always going to get a better deal buying direct from a dealer.

Another thing to note when shopping online for your bullion, aside from the convenience charge, is the fine print. The kind bullion buyer from www.targetrichenvironment.com shared a worthy scam you all should be aware of. On eBay beware of a silver bullion item with a vague description and a good price. That seller is hoping you skip the fine print and miss the fact that it is not the .999 you are looking for.

There are listings of supposed .999 silver accompanied by the words “100 Mills”. This isn’t pure silver. It is a copper bar or round plated in silver. The seller may tag the item as “1 Troy Oz. 100 Mills .999 Silver”.

I’m not dissing copper, but you don’t want to pay silver prices for it! An easy way to avoid from this not-so-sly trick is take note of bidding prices. If most people are underbidding or if there are unfavorable reviews on the seller, READ THE FINE PRINT. Actually, you should be reading the fine print anyway.

As the author provides this eBay advice, he also points out that while acquiring this “100 Mills” metal wouldn’t be the worst thing in the world, passing it off as the pure silver you think it is could get you into quite the batch of legal trouble.

So be careful this holiday season as you continue your shopping online. As a matter of fact, buying silver for that special someone is a great gift idea. Just play it smart and get educated now on buying precious metals the right way!

Happy buying,

Megan

If it sounds too good to be true, it probably is. Although we refer to the conventional pathways to purchasing gold, I’m sure over time as you begin immersing yourself in the precious metal’s community you will find yourself looking for deals in all places. Your ears will begin to perk up when you hear of any bargain that comes in right at, or under, spot price.

This scam is to remind you that whether or not it is a licensed business or an individual on the street, having your gold or silver’s legitimacy confirmed is a must before following through with a purchase. One way of knowing is dealing with a well known dealer with a great reputation. Learn a lesson from this woman.

Last week, in Bakersfield, CA, a scammer approached a woman in a Big Lots expressing her desperation to sell the gold bars she had in her possession to pay for an emergency surgery for her father. Her scamming-sidekick soon arrived saying he had found a store to purchase the bar for $12,000 but had to wait until 5 p.m. to go back and sell the next bar due to the low amount of cash the store held on hand.

The woman they approached was convinced to purchase one of the bars of gold for $1,000 – with the scam artists telling her that she can return to Kmart later to flip that bar for $12,000. However, after they made the exchange, the scammers never returned. Soon after the woman found out that the gold bar wasn’t even gold. She was out $1,000 with a bar of metal that didn’t add up.

I’d like to think that most precious metals investors would know better than to buy a gold bar off of a stranger in a home goods store (100 oz. of gold = approx. $173,000 today), but you never know. Some ways to stop a scam before it happens is get to know your dealer by researching their company online or searching for reviews from their past customers. Also, if you are making a purchase in a barter like fashion, trade contact information and contracts to ensure that if the purchase is bogus, you have a way out. Finally, be alert and educated on the metal you so hope to own. Share these kind of stories with family members along with the Peter Schiff’s Gold Scam Report to be well-prepared for your first…or 50th purchase. (Download the report for free in the top right hand corner.)

Note: The two suspects of this gold bar scam have not been arrested, and the police are asking for the community’s help. If you are in the area and have a tip on these scammers you can call Detective Galland at 661-326-3858.

 

It’s not just the bait and switch scams you have to watch out for; scams can be even scummier than you can imagine. This particular scam cost individuals tens of thousands as Global Bullion Exchange owner Jamie Campany mislead his over 1400 clients to invest in gold “accounts” that would never actually hold the bullion.

Jamie’s company was functioning out of a boiler room in Florida that was converted into a call center. His sales team would find leads, connect the phone number to addresses on Google Earth to see what kind of property the potential buyer owned. The salesperson would then carefully select a potentially profitable lead by finding the largest houses. When the home owner answered, the salesperson would proceed to use every tactic in the book to eventually scam the person into buying gold that the company didn’t own and never would convincing the customer that an account would hold the purchase until the client decided to cash in. They even talked people who had no free-flowing cash into investing! Listen to his confession here:

The most fascinating part of the story is his ability to manipulate the 30-50 year old age bracket, a demographic you would assume could easily sniff out the deceit in the air. Campany did, however, highlight that his most difficult leads were the “little old ladies” who remained skeptical of someone they didn’t know asking them for thousands of dollars over the phone.

Unlike some of the scams you’ve heard about here and in Peter’s report, this scammer is coming clean, pleading guilty, and facing up to 25 years in prison. Be weary of direct phone calls by bullion salespeople and be sure to look up the in’s and out’s of their business if you do consider a offer. Perhaps the moral of this story should be: behave like a “little old lady” and do research into any company who contacts you before buying.