Gold Coin Dealers
Gold coins have become increasingly attractive to investors over recent years. They are seen as a relatively safe investment in difficult times. Gold of any kind, but particularly in coin form, has seen dramatic increases in value as the turmoil in world financial markets has drastically heightened the risks and reduced the returns from more traditional investment opportunities. The value of stocks, bonds, property and other assets and commodities has fluctuated wildly whilst the price of gold has steadily risen. Of course, as with any investment there is still a degree of risk and nothing is guaranteed to increase in value indefinitely. However, there is a very strong correlation between financial and political volatility and world gold prices. Gold is often viewed as a safe port in a storm.
For those looking to invest in gold coins, one difficulty lies in finding a reputable and reliable dealer. A quick internet search will reveal a plethora of coin dealers, but how is the average investor to know which are reliable and trustworthy? Potential buyers of gold coins would be wise to be cautious, as there are many scams and tricks played on the unwary in this market.
What to Look for in a Gold Coin Dealer
It is important to do a bit of investigation before buying from or selling to a gold coin dealer. Don't simply choose someone who comes up first on an internet search. The dealer should have a valid postal address and telephone number. The length of time that the business has been established can also be a good indicator of reliability. A word-of-mouth recommendation is often useful, as are any reviews or comments posted online about the dealer in question.
Professional Associations for Gold Coin Dealers
Another good method of assessing the trustworthiness and honesty of dealers is to check whether they are members of legitimate and recognised trade associations. These bodies will be selective in who they allow to become members and ensure that a code of practice is followed that prevents customers being exploited.
In Britain the organisation to look for is the British Numismatic Trade Association (BNTA). This body requires certain standards from its members and is very active in the fight against fraud. It regularly takes action, for example, to expose and document forged coins that are being offered to the public.
Another important association in the USA and across the world is the Professional Numismatists Guild (PNG). They have very strict guidelines and rules, which their members are expected to strictly adhere to.
Remember that when buying gold coins you do not have to use dealers who are members of an association, but it is a good indication that they will behave in an honest and straightforward fashion.
Requirements for Membership of the PNG
There are a number of strict requirements to be satisfied before a gold coin dealer can become a member of the PNG. When buying coins, particularly rare and valuable ones, membership of this body can offer a customer some reassurance when choosing a dealer.
The first condition of entry to the guild is that they have assets above a certain set limit. This helps protect customers by ensuring that the dealer is not likely to go out of business for any reason. There are also restrictions on the age and experience of the dealer applying to join the association.
To further protect customers of PNG members, there is a code of ethics that dealers must follow that guarantees that they treat everyone they do business with in a fair manner. They must also agree to abide by the rulings of an independent arbitration process in the event of any dispute.
Conclusion
As with any decision involving potentially large amounts of money, investing in gold coins should not be undertaken lightly. One of the key factors to investigate prior to buying or selling coins is the reputation and standing of the dealer involved in the transaction. By making the right choice of dealer you can invest with peace of mind and the knowledge that you will be treated fairly and honestly.
