Buyer Beware – Be Extremely Cautious with These Specialty Coins

As gold and silver reflect the lost purchasing power of the US dollar, the price of gold and silver has a pretty good chance to go up over time. In years past during times of a roaring bull market for gold and silver, many dealers will have large advertising budgets to market gold and silver ownership as a way to diversify and own a store of value. Investors need to be aware of products that will benefit them and not necessarily just benefit the dealer. Gold and silver is a very liquid market, but certain coins may not be as liquid as others. In this week’s article, we discuss specialty coins that require serious research and questions before purchasing. In no way is our discussion an endorsement to purchase these coins or even avoid these coins. It’s your nest egg, just be aware and careful.

The Royal Canadian Mint – Animal Series

The Royal Canadian Mint produces some of the purest and most popular precious metal coins in the world. The mint has always been at the forefront of technological innovation in precious metals refining and minting. The Royal Canadian Mint produces one of the world’s most popular bullion coins, the Canadian Gold Maple Leaf that is available in gold, silver, platinum, and palladium. However, it also produces several specialty coins featuring various animals, many of which are odd-weight coins in fractions of an ounce.

Many major precious metals dealers claim exclusive offerings of these specialty coins and use this as an excuse to charge exorbitant premiums on these coins well over their bullion content. We have seen countless investors fall for these sales gimmicks only later realize they may have paid double or even more for precious metals coins worth only their bullion weight. DON’T FALL FOR THESE SALES TACTICS!!

The Royal Canadian Mint specialty coins in the chart below are worth only their bullion weight:

The British Royal Mint – Queen’s Beasts Specialty Coin Series

The British Royal Mint was first established in London in the year 886. The British Royal Mint has a rich history; it was part of a series of mints around that globe that once produced coins for the Kingdom of Great Britain and most of the British Empire. The Royal Mint also has a long history of supplying gold and silver bullion to the rest of the world, a tradition alive and well today with the production and distribution of quality precious metal coins. The renowned and respected national mints of Canada and Australia were once part of the British Royal Mint family until 1931. Fully owned by Her Majesty’s Treasury, the Royal Mint currently mints coins and emblems for over 60 countries, making it a leading exporter of coinage as well as gold and silver bullion coins and bars. Like the Royal Canadian Mint, the British Royal Mint also produces a hallmark bullion coin that is popular around the world: the Britannia. The Britannia is available in gold, silver, and platinum. It is an IRA eligible coin that is recognized around the world.

However, the British Royal Mint also produces specialty coins marketed by large dealers, often at astronomical prices. The most commonly seen coin that investors pay astronomical premiums for is the Queen’s Beasts series of odd weighted gold and silver coins. The Queen’s Beasts series is neither rare nor numismatic in nature.

Again, beware of the following coins. They are only worth their bullion weigh:

Things to be Wary of

If a salesperson from a gold deal starts talking about coins with these characteristics, chances are very high that they are promoting an astronomically overpriced coin.

Exclusively Offered Specialty Coins

Many specialty mint coins are minted exclusively for specific dealers who then market them at high prices.

Obscurity

If a coin is hard to find and research, it might also be hard to resell when the time comes. Avoid buying obscure coins that are hard to find anywhere on the internet.

High Premium Over Spot Price

While physical coins cannot be purchased at the spot price of gold or silver, avoid coins that trade significantly over (50%+) their metallic content.

No Buy-Back Policy

If a broker cannot tell you the buyback policy or buyback price, you should not buy the coins.

What If I Already Purchased Broker Exclusive Specialty Coins at a High Margin?

If you have fallen victim to the sales pitches for overpriced specialty coins, you are certainly not alone. Midas Gold Group is very well aware of this major problem in the precious metal industry. We have developed exclusive strategies for reducing the losses so many investors have experienced from specialty and exclusive mint coins.

Avoid Costly Mistakes

Midas Gold Group has been assisting clients in all 50 states to acquire the diversification, hedge, store of value, and purchasing power that gold is supposed to provide. Wealth preservation is accomplished by owning the best gold and silver products at a reasonable price. Gold specialists are supposed to put together a plan for each investor based on their individual and unique wants and needs. Gold and silver investors should be asking some of these important questions.

• What mint does this product come from?
• What is the weight in troy ounces of this product?
• What is your buyback policy for this product and how is the price determined?
• How easy are these specialty coins to sell to another dealer if I need to?

A full-service dealer should be relied upon to point out undervalued situations and opportunities because history and prior cycles say so, not because the dealer has an incentive to promote certain products beneficial to them. Take advantage of the next run-up in gold and silver by purchasing now. Purchase well-known products from established, qualified mints. When it comes time to sell, something is only worth what someone else will pay for it. There is a much bigger audience for well-known products versus products minted with weird animals on them. Historical events can be talked about, you don’t need them depicted on a coin you are going to own. Call Midas Gold Group today at 480-360-3000 or 805-601-6000 and see where we are today in the gold market based on real research. Investors should own gold and silver products that are a good quality value today, and liquid with the potential to appreciate in the future. Call a Midas Gold Group trader today at 480-360-3000 or 805-601-6000 to get the gold service you can rely on.

November 12, 2020