Saturday, August 22, 2015

SENIORS SHOULD BE CAREFUL IN INVESTING IN PRECIOUS METALS AND COINS



SENIORS SHOULD BE CAREFUL IN INVESTING IN 
PRECIOUS METALS/COINS

Mark and Carol Fairall
The Real Faces of Elder Abuse
AUGUST 2015

Many elderly are receiving phone calls from dealers in precious metals (gold, silver, and platinum). Also late night TV has info commercials saying now is the time to buy gold and silver coins since the market is low. The rule of thumb is that your investment portfolio should be less than 10% for gold and silver and that you should hold on the precious metal investment a minimum of three years.
Several factors must be considered when you buy precious metals which are: where to buy, what to buy, and how to store. It is best to buy coins from the US Mint because TV sold coins have huge market-ups. If you are worried the US dollar's buying power is about to disappear buy 1/10 of an ounce coins because one ounce coins are harder to sell and buy things with in the future. Remember coins are heavy and an easy target for crooks so you need a home safe or use a bank safe deposit box for the storage.
We have taught classes on coin collecting since I am a Numismatist. I emphasize in coin collecting classes that it is a HOBBY and dreams of make a killing financially are rare. The more you learn the better. We enjoy the historic focus of coin collecting which helps you understand what was happening when the coin was made.
NOTE: If the salesman needs you to make an immediate decision and send the money.... IT IS A SCAM!

CHINA IS FLOODING THE USA WITH FAKE COINS: It is estimated that 40% of the raw coins for sale are fakes from China. The feds discovered a $5.4 million scam where counterfeit coins were turned into the U.S. Mint in the mutilated coin program. The coins had aluminum and silicon which is not in American coins. What tipped off the feds was more half dollars were turned in than minted. This was done by Guang Han Trading of New Brunswick. The US Mint loses money on this buy-back program and the program should be eliminated.
The best way to buy a real coin is to know who you are buying it from or if the coin is graded. The best grading companies are NGC or PCGS. It costs around $30 to grade a coin and well worth the price.
The best way to spot a fake coin is: weight, color, and sound when you drop it. The coins that are faked the most are gold coins: $2.5 Eagle and the one ounce Eagle. It is a great scam to spend $50 for a fake coin and sell it for $1,250.
NOTE: When in doubt ....walk away from the deal!

ANOTHER SENIOR SCAM AND POOR JUSTICE - $80 MILLION FRAUD – COIN SALES ON THE PHONE - THAN TRIED TO KILL THE JUDGE: Joseph Romano stole $80 million from 3,000 investors (mostly elderly) by selling worthless coins using high pressure on the phone. Joseph Romano received only a 15 year prison sentence for the fraud. This is not justice for destroying the lives of so many people.

NOTE: The rest of the story. Joseph Romano just got a life sentence in jail for trying to kill the judge and prosecutor. While in jail when his coin fraud case was pending Joseph Romano tried to hire a hit-man killer. These are really dangerous crooks!!!

Joseph Romano 
PERFECT EXAMPLE OF A COIN SCAM - THE NEW STAR TREK COIN: Small foreign mints make collectors coins and sells them for usually many times over the real value.
The new Star Trek coins are for sale from the Perth Mint for Tuvalu. The Perth Mint is in Australia and Tuvalu is a small Polynesian island. This is how small countries raise money.
NOTE: If you want one of these overpriced Star Trek Coins look at what they sell for on eBay. The same coin sells on eBay for $120.00 not $220.00. The coin is worth about $40.00 in silver coin value. That is a 550% markup! Bad investment but cool coin!
New Star Trek Coin - Perth Mint - 2015
ANOTHER GOLD COIN SCAM OF THE ELDERLY - $18 MILLION: Larry Bates, former Tennessee lawmaker, scammed over $18 million from Christians and elderly. Many never received the coins. The fraud ran from 2002 to 2013. Larry Bates and his two sons, Charles and Robert Bates, ran First American Monetary Consultants. They have been charged with mail and wire fraud. They each face up to 20 years in prison.
NOTE: Buy or sell your gold or coins with a reputable coin dealer.


Larry Bates
DO NOT MAIL COINS TO BE SOLD - COULD BE A SCAM:  One important subject is a warning about NOT SELLING coins by mailing them somewhere.
A recent FBI case this summer was about a $260,000 theft from the elderly by coin dealer Chrysanthos Nicholas (TCW Trading and North Fork Six Fare Coin Consultants) located in Minnesota. This crook had seniors mail him coins for sale and they received nothing.
Sadly, Mr. Nicholas only received a jail sentence of 27 months. His excuse was he was going through a divorce and hard times. What about the pain and suffering he caused all his coin scam elderly victims? Mr. Nicholas thought it was easier to scam the elderly.....he was right.
NOTE: Prevention is better than Prosecution in fighting Elder Abuse and Elder Fraud!
BEST DEAL AT THE US MINT - SILVER PROOF SET: Once a year the US Mint produces the 14 coin SILVER PROOF SET. It is a great value for just over the $50 price and goes up in value every year. This is a great gift for yourself or a loved one. This is a great investment for your child to buy this set every year because the coins double in value very quickly.
NOTE: In our opinion that it is the best deal at the Mint!

2015 Silver Proof Set
COIN COLLECTING RESEARCH SUGGESTIONS - GOOD NEWS: About 10 million (about 3%) Americans collect coins. Coin collecting is much more popular throughout the world (about 25%). The fun thing about coin collecting is that it is like holding a piece of history in your hands made from all over the world. Check your pocket change because that is where you will find the treasured valuable coins worth a lot of money.
We suggest the following reference materials:
COIN COLLECTING FOR DUMMIES: Good basic coin collecting book of the hobby.
WORLD COINS: The coins of many countries are very beautiful and very progressive. The future of coins is that many coins in the world are now made out of plastic which is cheaper and last longer. They are much lighter too.
COINS Magazine: This magazine shows current trends of coins and best buys.
NUMISMATIST Magazine: This magazine has in depth articles of the history of certain coins and tokens. (This is my favorite.)
OFFICIAL RED BOOK–UNITED STATE COINS: Don't forget to buy this book first!  Keep these books because they become collector's items that sell for more money.
NOTE: Carol and I volunteered taught coin collecting for many years at many adult learning centers to warn the seniors not to be scammed when they buy or sell their coins. We had a lot of fun grading the senior student's coins to determine the value.
SPECIAL NOTE: I had to laugh at a coin telemarketer telling me he had a PF 96 coin for sale and that PF 100 was that best. Those were lies. The top of the coin grading is PF 70 and MS 70. Proof State (PF) are coins made for collectors because they are stamped several times for clarity. Mint State (MS) are regular circulation coins used by everyone to transact business. Just a little of knowledge helped me to determine the guy on the telephone was a stupid crook.
EXTRA SPECIAL NOTE: We have been informed that our COIN COLLECTING WARNING report is being printed in several national magazines and newspapers.


First Book the Buy - RED BOOK
NEW COIN COLLECTING BOOKS FOR CHURCHES AND SENIOR CENTERS LIBRARIES: Thank you to the ten churches and senior centers that are adding our suggested coin information books and magazines to their libraries.
NOTE: Knowledge is the key to stopping elder fraud!



COIN COLLECTING WARNING: Coin collecting is called the “Hobby of Kings.” Rulers and Kings started the hobby by giving coins to people as a thanks or as a special event memorial token. Julius Caesar's nephew, Emperor Augustus, started giving coin gifts in 44 BC. Pope Boniface VIII in 1294 AD, Louis XIV in 1661 AD, and Emperor Maximilian in1861 AD gave rare coins as gifts.
However, remember that coin collecting is also the “Devil’s Playground.” Many seniors are receiving phone calls from dealers in precious metals and rare coins (gold, silver, and platinum). Also late night TV has info-commercials saying now is the time to buy gold and silver coins because the market is low. Do not fall for high pressure and false promises of huge riches. The biggest danger areas for rare coin scams are from the computer and phone. The rule of thumb is that your investment portfolio should be less than 10% for gold and silver and that you should hold on the precious metal investment a minimum of three years.
Several factors must be considered when you buy precious metals and rare coins are: where to buy, what to buy, and how to store. The best and safest place to buy rare metal coins is the United States Mint. TV sold coins have huge market-ups. Many specialty mints exist all over the world. They advertise investment coins being sold for small countries looking to make a profit. These specialty coins usually have at least a 500% markup of the spot value of the rare metal used in making the coin. Coins and precious metals are heavy and are an easy target for crooks. You need a home safe or use a bank safe deposit box for the storage.
Recently several Texas companies bilked $13 million from coin investors promising huge returns. A former Tennessee lawmaker and his sons have been indicted for using their investment radio show to steal $18 million in their coin selling scam.  In New York a “high pressure” telemarketer was just sentence to jail for an $80 million coin fraud. The best advice to avoid being scammed is to know what you are investing in and to deal with reputable firms.
The 10 tips to avoid being scammed in investing in rare coins are:
1.   Do not rush to buy and use common sense.
2.   Do a background check on the coin seller.
3.   Do not believe "Buy-Back" promises.
4.   Get a second opinion.
5.   Make sure the coin is graded by a reputable coin grading house.
6.   Shop the competition and compare prices and coins.
7.   Take immediate possession of the purchased coin.
8.   Be careful who you give your credit card number to.
9.   Don't cave in to "High Pressure."
10. Don't believe questionable misleading reports of huge riches.

Coin collecting is a HOBBY and dreams of make a killing financially are rare. Be careful but have fun because it is a wonderful hobby where you can hunt for special coins, learn about history, and possibly find that valuable coin in your pocket change. 





Enjoy Coin Collecting






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