Cart
0
Product
Products
(empty)
No products
To be determined
Shipping
$0.00
Total
Product successfully added to your shopping cart
Quantity
Total
There are 0 items in your cart.
There is 1 item in your cart.
Total products
Total shipping
To be determined
Total
More info
•
The Bait and Switch
• The Confiscation Con• The Numismatic Hype• The Proof Set Rip Off • The Leverage Trap•
and much more
If you are thinking of buying Gold or Silver coins you MUST read this Special Report before you buy. The market is filled with nasty surprises... Don’t be caught off guard!
CLASSIC GOLD SCAMS
AND HOW TO AVOID GETTING RIPPED OFF
Peter Schiff Exposes
About this Report
Euro Pacic Precious Metals was founded with a purpose: to make gold- and silver-buying as simple and transparent as possible. With so many new buyers coming into the marketplace, there is ample opportunity for dishonest rms with big advertising budgets to lure and take advantage of investors who are making an otherwise smart decision – to invest a portion of their assets in physical precious metals. With a strict policy against selling complex products like numismatics, we hope that gold and silver buyers like you come to see our rm as a trustworthy ally in your pursuit of the best return on your investment.Our CEO, Peter Schiff, has spent a quarter-century on Wall Street striving to deliver the best value to his clients. He has long recommended investors keep 5-10% of their portfolios in physical precious metals, but also heard horror stories of buyers falling in with the ‘wrong crowd’ of bullion dealers. So, partnering with industry-veteran Michael Freedman, he decided to open his own precious metals rm with his name on the door. Peter zealously defends his record of accurate economic analysis and fair-dealing, so it’s no surprise that Euro Pacic Precious Metals has quickly gained a reputation for competitive prices and ethical business practices. And, in doing so, has become a major player in the bullion industry.In keeping with our tradition of education and service to the everyday investor, Euro Pacic Precious Metals has issued this Special Report detailing all the tricks, traps, and scams that can befall gold and silver buyers. Our hope is that this report saves you a lot of costly trial-and-error, and proves why no asset class in history has ever out-classed plain old gold and silver bullion.Good luck, and good gold!
§
3
Questions? Call 1.888.GOLD.160{4653}
WELCOME TO GOLD-BUYING 101
As more investors add gold and silver to their portfolios to protect themselves from a declining dollar and looming ination, hundreds of companies have sprung up offering dubious and often even dishonest programs for investing in precious metals. These rms confront investors with a bewildering array of murky products, designed mainly to separate inexperienced investors from their hard-earned money.Using tactics such as bait-and-switch and high- pressure salesmanship, these companies take unfair advantage of the growing enthusiasm for gold and silver by selling products that are poor investments, often containing very little gold or silver, or sold at prices that are many times the value of the coins’ precious metal content.In this report, we’ll expose all the most common scams so you can buy like a pro. You’ll learn how, like magicians, unscrupulous gold dealers use sleight of hand and fantastic claims to confuse you and make your savings disappear. Armed with this knowledge, you’ll be able to successfully – and protably – crash proof your portfolio by buying the right kind of gold and silver at a fair price.
WHAT’S THIS FUSS ABOUT RARE COINS?
Let’s get one thing straight: very few gold dealers around today make their living selling
bullion coins.
They often advertise these coins (American Eagles, Canadian Maple Leafs, Australian Kangaroos, etc.) at low prices to attract buyers, and
sometimes
you can actually get them to sell you bullion coins at the advertised prices.
THE BAIT-AND-SWITCH
But the reality is that these coins are just used as
bait
. Most dealers’ goal is to get you on the phone, where their ‘boiler room’ brokers will try several arguments to get you to
switch
from bullion to
rare coins
, also known as
numismatics
. The rst and simplest claim is that rare coins are a better investment on their own merits than plain, old bullion gold. But just like buying an Armani suit is not an investment in wool, numismatics are not an investment in gold. The truth is that rare coins are a speculative (read: very risky) investment, and one that is particularly ill-suited to the next 5-10 years. But even more sophisticated arguments should be taken with a grain of salt. When dealing with many gold dealers, you have to remember that their brokers are trained to dupe customers. Many rms will hire hundreds of junior brokers and only keep the select few who make the highest commission on each sale. Since bullion coins are a low-margin product, the brokers who sell their customers the best value coins are promptly red. The ones who excel at deception earn hundreds of thousands of dollars –
of your money.
Unless you are a very serious collector who has substantial knowledge of the numismatic world, here are ve reasons you should avoid numismatic coins:
1: THE COMMISSIONS ARE EXTREME
If you’re buying a numismatic coin, you will not be paying a fair price for the bullion contained in the coin. Dealers sell numismatics at prices of
30-50% or more
over the coins’ bullion value, and a large chunk of that will simply go into the dealer’s pocket.
(cont’d)
As a matter of business policy, Euro Pacic Precious Metals does not offer numismatics, collectibles, or gimmicks. We offer only well-known, extremely liquid pure bullion gold and silver coins and bars at competitive prices.
For more information about our prices and products,
Call 1-888-GOLD-160 or CLICK HERE
to request a callback.
4
Questions? Call 1.888.GOLD.160{4653}
A serious collector might buy a truly rare coin for double, triple, or even many multiples of the value of the metal it contains because he values its rarity and/or beauty. But, for the average investor, numismatic coins are on par with stamps or baseball cards.Sure, the coins’ metal content will provide a oor to their value that stamps and baseball cards don’t have, but the gold value is typically only a fraction of the retail price of a numismatic coin. If you pay twice the bullion value to buy a rare coin, bullion could
double
in value and you still might not be able to sell your coin for a prot. If you buy a regular bullion coin, the gold price only has to rise a few points above spot before you prot.Firms pushing numismatics may say the spread of the coin they’re selling you is only, say, 35%. That means they will buy your coin back for 35% less that you bought it for. Not so good. But consider this: with a 35% spread, the coin actually must appreciate 55% for you to break even. One rm says that this is okay, because investors should hold coins for 3-5 years. But why would you want to wait 3-5 years just to break even? With that kind of return, you might as well put the money under the mattress.In short, if you are buying numismatic coins, chances are you’re making a fast-talking salesman very rich at your expense.
2: THEY’RE HARD TO LIQUIDATE
Even if your rare coin does appreciate, good luck trying to sell it. While bullion coins are accepted at near spot price around the world, there is no ready market for numismatics. You could try selling the coins back to your dealer, but chances are he’ll offer much less than what you paid. eBay doesn’t work because the buyer can’t verify that the coin is actually rare. And it’s nearly impossible to sell them to the general public, as you probably don’t have the persuasive power of the fast-talking broker who sold the coins to you.Experienced collectors do their trading at coin shows, but a novice investor is sure to get a bad deal there. A few off-hand questions and the coin trader will know that you’re in over your head.By contrast, bullion coins are easy to sell anywhere in the world. And even better, you can barter them locally for the stuff you need – food, clothes, a roof over your head –
even if the other guy isn’t a coin enthusiast.
In other words, bullion is money. One of the characteristics that makes gold and silver money is their uniformity – meaning each coin is the same as every other coin of the same weight. Diamonds, which are not uniform because they vary in clarity, color, etc., are not money. Numismatic coins, which vary in rarity, condition, date of issue, etc., are also not money. Bullion gold coins will always have value to your fellow Americans, while paper dollars have less and less. As the dollar declines, the price of gold and silver will continue to rise, reecting the stable purchasing power of the precious metals. What’s more, in a volatile environment, bullion will carry a premium for being reliable and widely accepted money – just as the US dollar does now.
(cont’d)(cont’d)
5
Questions? Call 1.888.GOLD.160{4653}
3: THE CHARTS ARE COOKED
Numismatics salesmen might show you a chart comparing the performance of rare/numismatic coins against regular/bullion coins. Of course, the chart shows the numismatics performing much better. But these graphs almost always track particular rare coins which are cherry-picked with the benet of hindsight. For every one rare coin that outperforms, there could be ten that severely underperform. Only afterwards would you know which coin you should have bought.Comparing the wide index of rare coins issued by the Professional Coin Grading Service (PCGS) against the spot price of gold bullion shows that over the past decade, rare coins have appreciated only 36% while bullion gold has appreciated 445%! Numismatics have in fact missed most of the gains of the last decade.And this comparison omits most numismatic
dealers’ high mark-ups – which could more than wipe out the meager gains for retail investors.
4: CONFISCATION IS A CON
Some unscrupulous dealers won’t even pretend that numismatics are a better investment (helps avoid lawsuits for fraud), but instead tell customers that only rare coins will be exempt from a coming “gold conscation.” This is based on a little piece of history taken way out of context.In 1933, President Roosevelt issued Executive Order 6102, prohibiting the private holding of gold and requiring US citizens to turn over their gold bullion or face a $10,000 ne ($167,700 in today’s dollars) or 10-years imprisonment.For private citizens, the order listed the following exemption:
Gold coin and gold certifcates in an amount not
exceeding in the aggregate $100
[about 5 troy ounces at that time]
belonging to any one person;
and gold coins having a recognized special value to collectors of rare and unusual coins.
Seizing on this “rare and unusual” language, many coin dealers try to convince unsuspecting customers that regular bullion coins are not safe, but that
their
rare coins would be exempt from a Roosevelt-style conscation.The reality is that almost all coins sold as “numismatic” by these dealers are really quite ordinary coins sold at high mark-ups to make them extra prots. If we were in 1933, the vast majority of these coins would absolutely not fall under the denition of “rare and unusual.”
As mentioned above, true numismatics are extremely rare or one-of-a-kind coins that collectors purchase for their historical and aesthetic qualities. These coins might retail for $25,000 or more, while only containing $1,400 worth of gold. Just like all art isn’t museum art, all old coins are not numismatic. But even if you were buying a genuine rare coin to avoid conscation, you would be wasting your money – because there isn’t likely to be another conscation. In 1933, when Roosevelt issued his infamous order, the United States was still on a gold standard, meaning
Rare vs. Bullion Gold Coins
20012002200320042005200620072008200920102011