The Attorney General of Texas, Ken Paxton, recently issued a consumer protection alert about the buying and selling of gold coins. The alert was written with the help of numismatic expert and award-winning writer Michael Fuljenz, President of Universal Coin & Bullion located in Beaumont, Texas.
Fuljenz provided continuous consultation to the attorney general’s office on this important consumer alert. In coordination with other key industry leaders, Fuljenz offered guidance on consumer protection best practices for precious metals consumers and investors.
The advisory states that senior citizens are particularly at risk. They make up about 14% of the total U.S. population, yet account for up to 60% of the callers to the National Fraud Information Center.
The advisory also cautions consumers and investors that if they invested in coins that would have to double or triple in value before realizing a gain, they may be victims of fraud.
Consumers Should Do Their Research Before and After Investing in Gold Coins
The advisory focuses on the importance of working with reputable dealers before investing to avoid overpaying when buying, or receiving too little when selling.
Paxton’s office advises coin buyers and sellers to research dealers through Better Business Bureau, The American Numismatic Association (ANA), The Professional Numismatics Guild (PNG), Professional Coin Grading Service (PCGS) and the Numismatic Guaranty Corporation (NGC).
When asked about the report’s importance, Fuljenz said, “By issuing this important consumer protection advisory, Texas is not only assisting Lone Star State residents, but is providing nationwide benefits to the public who can access this useful information online.”
He continued, “Attorneys general across the country now have a template to provide consumer protection advice to their residents about buying, investing and selling gold bullion and gold coins.”
The advisory offers other valuable tips including:
- Do not respond to callers not previously known. Cold callers are often not registered in Texas to legally telemarket and may pressure customers to act quickly.
- Do not do business with a dealer who guarantees the safety of your purchases, or one who promises they will increase in value or that they cannot lose value. Likewise, you should avoid any seller who stresses government gold confiscation. Be especially wary of dealers who tell you they will buy back your purchase for what you paid at any time.
The full advisory from the Texas Attorney Generals office can be found at texasattorneygeneral.gov/cpd/gold-coins.
Fuljenz explained, “Regretfully, due to print limitations, additional buying and selling tips were excluded including avoiding false grading claims, advice about return privileges and urging caution if sellers receive certified money orders or checks from unknown buyers because they could be counterfeit.”
Ten additional consumer protection tips are available online at www.MikeFuljenz.com/goldtips.
Known as America’s Gold Expert®, Michael Fuljenz is the president of Universal Coin & Bullion. He has won more than 60 national and regional awards and honors for consumer education and protection work in rare coins and precious metals.
Fuljenz sits on the boards of the Crime Stoppers of Jefferson and Hardin Counties, Texas, the Industry Council for Tangible Assets, and is a member of the highly regarded Professional Numismatists Guild, which honored him in 2016 for his work in fighting numismatic-related crimes.