Here’s how this scam works: Gold dealers contact the mint and ask which coins they are going to stop minting.
For example, let’s say the U.S. Mint was striking a 1 ounce gold coin called the Honey Badger coin. (this is a made up coin name for illustration purposes only)
And let’s say that due to low demand, they decided to stop minting the Honey Badger coin.
Well now they may have 10,000 of these coins left in stock.
Shifty Gold Dealers
Shifty gold dealers see this as an opportunity.
They will begin buying up the last batch of that particular coin.
So now they own the last 10,000 Honey Badger coins that will be minted anytime in the near future.
In turn, they will suddenly refer to these coins as limited-edition, exclusive or rare… as if that gives them greater monetary value…
Compare it to Wal-Mart
It’s like if Wal-Mart liquidated their last 10,000 units of a particular 2015 book to a smaller book dealer, in order to make room on their shelves for upcoming 2016 new release books…
And then that smaller book dealer went on to sell that 2015 book as a “limited edition” book that is suddenly worth a premium price.
Word to Watch Out For
If any gold dealer mentions words like “limited edition”, “rare”, “special edition”, or “exclusive”, please do yourself a favor and HANG UP THE PHONE IMMEDIATELY.
Just remember that anytime you start to hear words like “rare”… “special edition”… “exclusive”… or “limited” when it comes to gold, then you’re usually about to be scammed.
Real Physical Gold Bullion
If you are interested in owning gold for the same reasons most people are, then the best way to invest is by acquiring REAL physical gold bullion. (no exceptions)
Real gold bullion coins, or bars – without insane markups — have the type and grade of metal and their weight stamped right on them.
Gold American Eagles are a great example of REAL bullion coins. They are the top selling gold bullion coins in the world, and any reputable dealer would be happy to sell them to you at a reasonable price.
Okay, this one was short but equally important. Tomorrow, I’ll share with you a longer essay on Scam #4.