Do Not Buy 24 KT Gold Plated Coins from TV Offers
If there is one bit of financial advice that I want my readers to get from my blog it is this: Do not buy 24 kt gold-plated coins from anyone. I have been buying coins from the public for more than 33 years and I have never once come across anyone who has ever gotten more for their gold-plated coins than they had paid.
This is how these scams are usually hawked (fill in the blanks with whatever sport or invention or event that is appropriate):
This coin commemorating _____ is a minted memory that will last a lifetime, quadruple-struck with platinum hammers fashioned by award-winning Italian designers especially commissioned by the ______ Mint.
Each medallion is richly layered in 24 Karat Pure Gold. It is 1-5/16 inches in diameter and has a remarkable three-dimensional appearance.
The front of the coin features ______ , the reverse features ______ as well as the date, and the serial number. Each coin is presented in a protective case to keep it free from dust and fingerprints and delivered in a velour jewelry box as well as accompanied by a Certificate of Authenticity signed by the President of our company who once sold diamond watches to celebrities.
These medallions are officially licensed and limited to only 5000000 pieces!
Hurry, the regular price of $99.95 is specially reduced for this TV offer for as little as $39.95 each and can only be held for another 1400 days. Please - Only 55 coins to a family.
This item ships for $17.95 to the Continental U.S. and is insured up to $100.00 which is what you expect to pay anywhere else.
This is a memento you will treasure for a lifetime but act now!
When people come in with these nearly worthless pieces of garbage many years later I usually buy them for about 25 cents each and put them into a basket until I have a hundred or so; I then sell them by the pound to flea market entrepreneurs.
I don't try to melt them down because there is not enough gold on them to pay for the refining costs.
If you look on ebay, search for 24 kt gold overlay coin or 24 kt gold plate coin and you will see the paltry selection of offers, most of them "buy it now," and those that are up for auction, unless they have some silver content, all have zero bidders - there is no real after-market for these things. Now type in Krugerrand and see healthy and vibrant auctions for the coin. The sad fact is that more Americans own gold-plated coins than own Krugerrands.
If you want a hedge against runaway inflation and out-of-control government spending, then invest in gold coins such as the Krugerrand. But caution, there are companies out there selling gold coins with outrageous premiums, some as high as 6% or 7% or more. You should not pay more than 4% over the price of gold for Krugerrands. At today's price of gold of 1334 dollars per ounce, you should not pay more than $1388 per coin plus a few dollars for shipping and handling.
Disclaimer
The article above is provided for informational purposes only, and is not to suggest that our economy will 100% go into the shitter. I shall not be liable for any actions taken in reliance thereon. Planck's Constant may provide links to selected precious metal dealers for your convenience only. I do not recommend the services of any bullion trading company. The company you select is solely responsible for its services to you, my reader. I shall not be liable for any damages or costs of any type arising out of or in any way connected with your use of the services of the precious metal dealer or my opinions on any company.
Is it possible to buy a 24 kt gold-plated item and sell it for more than the original cost? Is it possible that Scarlett Johansson will one day read the 17 articles I wrote about her and fall in love with me? The answer to both is yes.
