Logic should tell you that the price of gold coins, the ones that are the collector type, are a rip-off.  And dealers are making big bucks on them.

When you buy collectable gold coins you’re paying far more than the actual gold value.

Let’s look at an example.  Gold dealers try to tell you that “collectible” or “numismatic” coins are extremely valuable.  Mainly because they get their value from gold content and “historic value”.

The 1933 St Gaudens Double Eagle was sold for $7.59 million in 2002.  The coin is about 0.9675 ounces of actual gold.  Today that’s approximately $1,700 worth of gold.

In other words, the “historic value” makes 600,000% mark-up?

How much “historic value” is that coin going to hold when the bottom falls out of the economy and nobody has the money to buy it?

First, no one is going to have $8 million worth of goods to trade you.  Second, you’re going to want things that you can taste, touch and smell – not something gathering dust.  Bottom line is, when gold is about survival, nobody cares how much “collectible” value it has.  They want real value.

Now, that’s not to say that if an uncle gives you a rare collectible coin you should throw it away.  You should sell it and buy as much real gold as you can.  That’s the only way to guarantee you can live comfortably, no matter what the economy does, buy bullion coins and bars.

Yet many of the big dealers are pushing these overpriced coins instead of bullion.

I’ll bet that you’ve heard more than a few big named celebrities talk about what a “smart investment” gold is.

Unfortunately, money makes the world go round.  And Big Gold Dealers have deep pockets.  They’re willing to pay big money to whoever will help them sell more gold.

Whether it’s because of blatant dishonesty, or more likely because they just don’t know any better, big names frequently recommend big gold dealers.

Those endorsements are costing honest people thousands of dollars.  The bottom line is, just because someone is popular doesn’t mean you should take their advice.

There are a lot of gold scams out there, especially since the price of gold is so high.

If you want to invest in gold be sure to do some checking around and compare the price  between one place and the other.