Buyer Beware of Fools Gold

[Arizona Coin Collector]

FROM:
http://www.fox44.com/news/local/34492324.html

WGMB TV BATON RUGE LOUISIANA - FOX

Buyer Beware of Fools Gold

By Lauren Unger
Story Updated: Nov 14, 2008

We have a consumer alert for you. With people worrying
about the drop of stocks, many are putting their money
in other commodities. One popular investment is gold,
but it's a case of buyer beware so your solid investment
doesn't turn into fools gold.

Frank Land has been collecting coins all his life. He
says, "A lot of them were handed down to me, my mother
collected several."

But he says even he has nearly gotten caught by scammers.

Coin expert Mike Mouret says it's buyer beware. Like
those shiny coin ads on TV, advertising limited edition
coins, sure to increase in value.

"They basically have a clad proof which is just a nice
way to say, it's junk."

And just to show you what you have to lose if you're not
careful with your coin collection, we have two coins that
may look pretty similar to the average person, but one
is the real thing. It's worth $800 and the other is only
gold clad, worth about $8.

And from coins to jewelry, look out for those gold parties
at people's homes.

"What the consumer doesn't realize, they're having a good
time doing it, but they're getting 50 cents or less on
the dollar for their gold items."

And look out for those companies that say they'll give you
cash for your gold. Mouret's heard stories of companies
offering hundreds less than the value of the gold.

"To me, that's a scam."

An ounce of prevention when you buy that ounce of gold.

But Mouret says gold is a good investment if you go to
a reputable dealer. He also recommends you be extra
careful when shopping online. And the best bet when it
comes to gold are items like solid gold U.S. coins or
slices of bars. These are standardized by national
governments.

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