False Claims about Current Value
Some dealers engaging in coin fraud or precious metals fraud, grade their coins accurately, but overprice the coins and/or mislead consumers about the value of the coins.
False Appreciation Claims
Dishonest coin and bullion dealers often mislead buyers by quoting appreciation rates for collectible coins from an annual index formerly compiled by a defunct Wall Street investment bank. Falsely guaranteeing coin appreciation rates is known as “pitching heat” in the industry.
Dealers engaging in coin or precious metals fraud tend to dramatically inflate the value of the coins or bars, charging prices substantially higher than a coin’s actual value, base on a arbitrary grade. Some dealers grade their coins in-house or through “NOT SO” reputable grading services.
Graded Coin Fraud
Dealers engaging in coin fraud and precious metals fraud use grading services to create the illusion of higher value of bullion coins. For example, since the bulk of Gold Eagle and Silver Eagle bullion coins have never been touched by human hands, most newly minted Gold Eagle and Silver Eagle bullion coins should grade very high, and many are graded 70, the highest grade awarded. Gold fraud scam artists will have a “NOT SO” reputable coin grading service grade a coin, but sell it to an unsuspecting customer for several times its true value. Truthfully, any person can purchase coins and submit them for grading for a small fee. When telemarketers try to use grades to sell you bullion, this is snake oil sales tactics.
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