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PNG warns bullion buyers of risks
By Numismatic News Staff
October 03, 2017

Editor’s Note: The following is a warning issued by the Professional Numismatists Guild.

Following the recent fraud charges filed by the Commodity Futures Trading Commission against a California gold seller, a trade group composed of veteran precious metals experts is urging investors to take three important steps before making any purchases of gold, silver or platinum bullion coins or ingots.

“To avoid paying too much when you buy or receiving too little when you sell, and to avoid potential scams, investors absolutely must know the credentials of the bullion dealer, not just what the dealer may tout on TV advertisements or with a fancy website,” cautioned Barry Stuppler of Woodland Hills, California, President of the nonprofit Professional Numismatists Guild (www.PNGdealers.org).

“If you don’t know gold, you’d better know your gold dealer,” Stuppler emphasized.

The Temecula, California-based Professional Numismatists Guild (PNG) was founded in 1955. Two years ago, PNG established an Accredited Precious Metals Dealer program, APMD (www.APMDdealers.org), to provide consumer and investor protection in the marketplace. APMD members must adhere to a strict Code of Ethics in the buying and selling of precious metals. The firm that was recently sued by the CFTC is not a member of the APMD program.

“The second step investors must take is knowing the current spot price of the precious metal they want to buy or sell. Bullion items, such as the American Eagle, Canadian Maple Leaf and South African Krugerrand usually sell for only about three to five percent above the current spot price depending on the quantity purchased. Beware of high-pressure selling prices that would force you to wait for gold or silver to double or triple in value before you could make a profit,” warned Stuppler.

“The third step is to take prompt delivery of the bullion items you purchase. Be wary of sellers who want to keep and store your gold, or claim it will take months to deliver items to you. The reason many people buy precious metal coins and ingots is because of their liquidity, but if you don’t have possession of the items then you can’t act quickly when you want to sell,” said Stuppler, who also is President of the California Coin and Bullion Merchants Association.

For more about the Accredited Precious Metals Dealer program, call the PNG at 951-587-8300, or visit www.APMDdealers.org.

Viewpoint is a forum for the expression of opinion on a variety of numismatic subjects. To have your opinion considered for Viewpoint, write to David C. Harper, Editor, Numismatic News, 700 E. State St., Iola, WI 54990. Send email to david.harper@fwmedia.com.



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Comments
On October 3, 2017 Dr K.A.Rodgers said
" Be wary of sellers who want to keep and store your gold,"

Good advice.

1. At least two New Zealand bullion dealers ended up in court post the 1980s bullion boom. They had sold card certificates instead of gold and when the crash came the gold cupboard was found to be bare.

2. That aside the comment is interesting in the light of Britain's Royal Mint offering to do just that: store your bullion purchases for you. While it is unlikely a state-owned mint would go bust I wonder what the legal position is if some crisis arose and there was a run on the mint and insufficient bullion was found to meet the demand.


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