Gold Coin Scam

tightauldgit

mjjh1970 said:

it seems to be a unregulated market. My Father lives alone in sheltered accommodation and was contacted multiple times with suggestions he bought the latest coin, each call they said his investment had gone up by x% and his 60k was worth 100k. Its shocking that companies can legally operate like this 

If you could evidence that then you'd certainly have more of a case but I suspect they're probably saying something like 'the value of gold has gone up X%' in that time and your dad is hearing 'the value of MY gold coins have gone up X%'

I certainly think they skirt a fine line with these sites because they're obviously designed to prey on people who aren't as clued up but at the end of the day I think they maintain legality.  

You buy 1oz of gold and get 1oz of gold - the extra price over the value of gold is for the design and the 'collectable' element. And obviously the value of any collectable is only as much as someone is willing to pay for it. When they are churning out thousands of these every week there's very little rarity value and probably not much demand anyway for a lot of the designs. But they don't promise any return on your investment or that it will increase in value so they're covered there. 

In a lot of ways its very similar to the jewellery trade where people pay thousands for things that have a couple of hundred pounds of scrap value because they like how it looks. The difference of course is that jewellers don't hype up the investment angle to sell their products. They have other tricks. 

Absolutely sucks that your dad got taken in and certainly kick up as much of a fuss as you can but just be careful of throwing good money after bad pursuing anything legally. 

TELLIT01

There are adverts on TV, presented by very well known individuals, for 1/4 and 1/8th sovereign coins.  They cost far more than the gold content.

sheramber

diinozzo said:

Can people please read what they have typed and correct it so it makes sense?

Can peolel not post cryptic comment that don't mean anything to others.

Say what you mean.

mjjh1970

born_again said:

mjjh1970 said:

it seems to be a unregulated market. My Father lives alone in sheltered accommodation and was contacted multiple times with suggestions he bought the latest coin, each call they said his investment had gone up by x% and his 60k was worth 100k. Its shocking that companies can legally operate like this 

Ask them to buy them back, sounds like a plan 👍Even if you said, well I'll take £80K

I am trying the 'buy back' option on two of the highest value coins but the contact is on leave until the 31st so will have to wait and see what they come back with. The website states that this can we withdrawn at any time so may not be an option on the other 50 coins!

the_lunatic_is_in_my_head

mjjh1970 said:

born_again said:

mjjh1970 said:

it seems to be a unregulated market. My Father lives alone in sheltered accommodation and was contacted multiple times with suggestions he bought the latest coin, each call they said his investment had gone up by x% and his 60k was worth 100k. Its shocking that companies can legally operate like this 

Ask them to buy them back, sounds like a plan 👍Even if you said, well I'll take £80K

I am trying the 'buy back' option on two of the highest value coins but the contact is on leave until the 31st so will have to wait and see what they come back with. The website states that this can we withdrawn at any time so may not be an option on the other 50 coins!

I would presume they'd offer a low amount, certainly no harm in exploring.

From an objective view point when selling on marketplaces, such as eBay, they take a commission and when selling anywhere to regular people gold, etc is an obvious target for scammers, and personally I would consider these factors before declining an offer.

However you may find a local place will pay more than their buy back price which is also worth exploring.    

tightauldgit

You can certainly check and see if any of these coins are trading on Ebay at anything in excess of their scrap value but I would imagine that any jeweller/gold buyer is going to offer the spot rate for 1oz of metal on them so anything in excess of that as a buy back offer would certainly be worth considering. 

walesdave

If you're looking to get sale prices I'd look on two or three reputable gold dealers' sites.
I'd try: Atkinsons Bullion, Hatton Garden Metals or Chards and see what they average out at.