Buyer Beware -  Coin Telemarketers are NOT Your Buddy

By Ash Harrison

Almost all of us have seen, if not heard about, the telemarketers of collectibles.  They are everywhere - on cable TV, calling you on the phone, on the radio, in the newspapers, in hotels - and while they actually provide a service to a few people, it is not without cost.  The basic rule of telemarketing for the seller, is that if he can't net double his money, don't sell it.  Sure, retail is often well over 100%, or even 200% markup, so some items make great sense to consider on a telemarketing call.

Coins and gold bullion are not in the same category as normal telemarketing products.  They are considered investments, and in order for you to have a good investment, you have to get into a profit position in a reasonable amount of time.  If you purchase coins or gold bullion from a telemarketer, you will likely pay nearly double the value of the item.  This means, in order for this to be a good investment, the price of the coin or gold will have to double for you to break even!  Wow!  I don't know about you, but I'm not sure I have time to wait for that to occur.  With gold around $1500 per ounce, the likelihood of the price going to $3000 is slim.

So, what is the solution? -- Don't buy coins or gold bullion from a telemarketer.   Do your research on your local coin and bullion dealers.  They will almost always be your best bet for buying or selling your goods.  The coin market is a very competitive one and most dealers work on about 10% margin.  Now that is good reason to invest in coins and gold bullion!  If you only have to make up 10% to get into a profit position, it may take less than a year for you to get even.  Not only that, if you OWN coins or gold, you can use your reputable local dealer to handle the transaction.

Ashmore Rare Coins & Metals is in Greensboro, on W. Friendly Ave across from Guilford College