I feel that it is imperative that we (you and I) check on what our family members or friends are doing with Telephone Solicitors or Telemarketers.
We received a call and emails from a family about two weeks ago.
The referral was from fellow Christians who are financial planners and wanted to help this family. Their plea for help was well justified.
The family that contacted us discovered that their father had "Invested" a substantial amount of money through a mainland telemarketer that was calling their elderly father.
Most of the elderly are being persuaded to purchase these coins that are tied to the bullion market. Most of the seniors have little or no knowledge of the precious metals market or rare coins due to the volatility of the current economy and numismatic market.
In this particular case, the elderly father (who has dementia) was receiving calls from a mainland telemarketer at least twice a month.
He had used his credit cards to purchase a number of bullion related items over the summer.
The problem with the telemarketing company having the consumer's credit card number, is that they can auto ship products to the customers on a weekly basis, or when they call to sell unsuspecting consumers the"hottest" gold coin deal that has come up!
Now this elderly gentleman is in jeopardy of losing his home.
The most important advice we can possibly share with our friends and family:
"KNOW WHO YOU ARE DEALING WITH"
Some pointers as you look to purchase Gold or Silver coins:
Please read the underlined portion of the following paragraph.
This will give you an idea what happened in the elderly father's case.
False Claims About Current Value
Some dishonest sellers of rare coins grade their coins accurately, but mislead consumers about the value of their coins. In other words, they overprice their coins, charging significantly more than a coin's actual value even though the coin is accurately graded.
For example, they may charge $5,000 for an accurately graded $10 Indian gold piece, which has a current retail value of only $1,750. False claims about value are becoming increasingly common in rare coin fraud. Despite statements to the contrary, there is a great deal of risk in coin investments. If you are not knowledgeable about coins, you may lose all or most of your investment.
Where To Go For Help
If you have a problem with a coin dealer, and the dealer has not resolved the problem to your satisfaction, there are a number of places you can go from help. Some dealers will resolve disputes through binding arbitration by an independent third party, usually through one of their professional organizations.
Consumer protection agencies, including the Federal Trade Commission, are interested in getting your complaint information to build cases against fraudulent dealers. Although most government offices are not able to resolve individual disputes, they can usually give you sound advice about how to proceed. Most coin organizations can help you if the dealer is a member of their organization. The following list of organizations and government agencies is provided for your information.
One Organization that was featured in the Numismatist Magazine (from the ANA):
NUMISMATIC CONSUMER ALLIANCE, INC.
a New Jersey Nonprofit Organization
The Primary Goals of the Numismatic Consumer Alliance, Inc, are as follows:
- To help consumers secure relief for fraudulent and illegal conduct within the coin industry. For such purposes, fraud and illegal conduct shall refer to the following practices: overcharging: underpaying: overstatement of investment potential: overgrading and other misrepresentations of quality, rarity, authenticity and fair market value
- To disseminate information to consumers with regard to the prevention and identification of fraud and other illegal conduct within the industry.
- To educate consumers with respect to coin grading so they may distinguish the competent coin grading services from others with hidden agenda, conflicts of interest or compromised independence.
The local newspapers have published articles dealing with consumers
(senior citizens are generally targeted) being preyed upon by these companies.
I believe we have an even greater problem here due to our seniors are even more trusting and unsuspecting.
We believe that individuals have a right to decide purchase gold or silver numismatic valued coins.
Customers who did purchase and are continuing or are starting to purchase coins are extremely satisfied due to they are purchasing these from reputable dealers at a fair market price.
But Craig does add some words of caution.
"Do not purchase gold or silver if you need to borrow the money
"Purchase what you can afford and do some homework before any purchase."
"Purchase from a dealer who stands behind his sale."
"Purchase from a Dealer who in the future will be willing to "buy back" the coins he's sold to you when you are ready to liquidate your collection."
As in other recommendations from Publications in the industry, the ANA and other Numismatic Organizations:
"Know who you are purchasing from and that they are a reputable Dealer."
As in the previous articles about Chiense counterfeits, this is your first line of defense in protecting yourself in what you are purchasing.
We continue to pray for a resolution for this family.