With input from numismatic experts, the attorney general of Texas, Ken Paxton, has issued a consumer protection alert about buying and selling gold coins.
Rare coins and precious metals writer Michael Fuljenz, president of Universal Coin & Bullion in Beaumont, Texas, provided continuing consultation to the attorney general’s office on this consumer alert.
Fuljenz, in coordination with other key numismatic industry leaders, offered guidance on consumer protection best practices for precious metals consumers.
The advisory notes that senior citizens make up about 14 percent of the U.S. population but account for 60 percent of the callers to the National Fraud Information Center.
Paxton’s advisory cautions consumers and investors: “If coins you bought as an investment would have to double or triple in value before any gain could be realized, you may have been a victim of fraud.”
Entitled “Consumers Should Do Their Research Before and After Investing in Gold Coins,” the advisory emphasizes the crucial importance of working with reputable dealers to help avoid paying too much when buying or receiving too little when selling. Paxton’s office recommends researching dealers through the Better Business Bureau, the American Numismatic Association, the Professional Numismatists Guild, Professional Coin Grading Service and Numismatic Guaranty Corporation.
“By issuing this important consumer protection advisory, Texas is not only assisting Lone Star state residents but providing nationwide benefits to the public who can access this useful information online,” said Fuljenz. “Attorneys general across the country now also have a template to provide consumer protection advice to their residents about buying and selling gold bullion and gold coins.”
Among other tips in the Texas Attorney General’s advisory:
• Do not respond to callers not previously contacted. Cold callers often are not registered in Texas to legally telemarket and often try to pressure customers to act quickly.
• Do not do business with a dealer who guarantees your purchases are totally safe, will go up in value or can’t go down, stresses government gold confiscation or says he will buy them back for what you paid at any time.
The full consumer protection advisory from Texas Attorney General Paxton is available online and as a printable PDF document at www.texasattorneygeneral.gov/cpd/gold-coins.
Regretfully, due to print limitations, additional buying and selling tips were excluded, said Fuljenz, including avoiding false grading claims, advice about return privileges and urging caution if sellers receive certified money orders or certified checks from unknown buyers because they could be counterfeit. All 10 of the additional consumer protection tips are available online at www.MikeFuljenz.com/goldtips.
This article was originally printed in Numismatic News. >> Subscribe today.
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