The headlines of the major financial dailies scream about stock market fraud, but those interested in precious metals and coin investing know that there is an even more serious fraud to be avoided. Coin dealer fraud is a serious issue for investors. Much like a broker, a coin dealer needs to be a trusted partner in your investment plan, and if this trust is violated, your portfolio is just one of the things that suffers.
Mental penalties are also paid, and the suspicion that comes from having been burned once before can cripple your investment confidence. For this reason, coin dealers who are found to be guilty of mismanagement and coin fraud are fiercely prosecuted.
The trouble is that there is serious money to be made in the coin industry. It is not unusual for a successful coin or bullion dealer to make millions of dollars per month as a part of their business practices. This is assuming things are completely legitimate as well – unscrupulous coin dealers and bullion brokers can make much more, at least until they are caught, fined, and disbarred or jailed.
For this reason, as an investor, you should understand that the temptation is there for people to pose as legitimate coin dealers and try to rip you off or defraud you in some other way. The due diligence burden is yours. You need to be sure that the coin dealers you work with are the real deal and committed to providing you with honest service you can trust throughout the relationship.
As a result, you should never make any coin purchases until you are completely confident in the integrity of your coin dealer. You should be able to look into their history in the industry and see years of committed customer service and satisfied past customers. Many new coin brokers simply do not have the skills or the integrity that you find at an established coin dealer.
Established coin dealers will be able to cater to your investing needs without compromising the principles of integrity and honesty. You will be able to read up on them in the Better Business Bureau listings and industry watchdog publications. Your coin dealer should be making headlines only for value provided, service rendered, or winning awards. They should be notable for how long they have been in business, not how “new and improved” their born-yesterday service models claim to be.
Precious metals and coin investors know how important it is to have absolute trust that the products you’ve ordered are exactly what they claim to be. Your coin dealer should be someone you would be able to trust with a major part of your portfolio without being racked with worry or losing sleep at night. Do your due diligence on any coin dealer you are considering as an investment partner to ensure that you do not suffer the financial or emotional consequences of coin dealer fraud at any point in your coin investing career.