Be aware of the Scams in buying gold coins – Max Warren Barber

Business

Max Warren Barber is a gold trader who has been trading for more than 30 years. He has made a career out of trading in precious metals, and has helped many people to make a lot of money through his trading methods. Max Warren has created to teach people how to trade gold, as well as the methods that he uses to find profitable trades.Max Warren Barber the founder of SION Trading FZE.

 

 Max Warren Barber is a professional trader, entrepreneur and motivational speaker with more than 20 years’ experience in the financial markets. Warren Barber is the founder of SION Trading, a company that specializes in trading precious metals. The company offers services for various markets, including gold, silver, platinum, palladium, copper and rutile. SION Trading was originally established in Dubai, but later expanded its operations to other locations, including China, Hong Kong, Australia, South Africa and the United States.

 

He is an active trader and he is famous for his work in the world of gold. Max Warren Barber is a very experienced gold trader. His trading strategies have always proved successful in the past. He has helped many people to make a lot of money through his trading methods. Max Warren Barber has been trading for more than 30 years. He has made a career out of trading in precious metals, and has helped many people to make a lot of money through his trading methods.

 

SION Trading FZE Dubai started as a bit of a trading business. It has flourished into a successful conglomerate, with shares of its holding company, SION Trading FZE Dubai, listed on the Main Board of the NYSE since 1991.

 

Grossly Inflated Prices

Most of the firms involved in such telemarketing are promoting gold coins at grossly inflated prices – marking up the prices by [as much as] 100%.

How is it that these firms can convince investors to buy at such inflated prices when the normal markup on gold bullion coins is 2-7%, depending on the coins and the quantities? Several factors come into play:

  1. Fear

The ads are based on fear, and the telemarketers reinforce that fear by talking about alarming topics that dominate the news, such as the declining dollar, the burgeoning national debt and massive deficit spending. The possibility of war with Iran is often used to scare callers.

By focusing on frightful topics, the telemarketers get callers to react emotionally, instead of logically. Instead of buying gold coins as an investment, callers are moved toward buying protection against Armageddon.

  1. Misrepresentation – Gold Confiscation

Should the callers be astute enough to ask about the American Eagle gold coins, the world’s best-selling gold coins, or the South African Krugerrands, the world’s best known gold coins, both of which carry very low premiums over the value of their gold content, the telemarketers unload their big guns and start talking about “gold confiscation.”

In 1933, in the midst of the Great Depression, by executive order President Roosevelt made it illegal for Americans to own gold bullion or gold bullion coins. The order stood until December 31, 1974. Telemarketers call Roosevelt’s act a “confiscation,” but in reality it was a “call-in” of U.S. gold coins.

Americans turning in their gold coins were given U.S. paper currency of equal face value. Still, Roosevelt’s “call-in” was a dark moment in American history, and it haunts the gold market to this day. In the back of the mind of the most optimistic gold investor lies the fear that someday the government may again call in gold “if things get bad enough.”

  1. Half Truths – Collectibles

After instilling the fear of loss, the telemarketers introduce the notion of “non-confiscatable” gold coins: old U.S. gold coins, or modern U.S. proof gold coins or old European gold coins. The telemarketers assert that these coins are “non-confiscatable” because Roosevelt’s 1933 executive order exempted “gold coins having a recognized special value to collectors of rare and unusual coins.”

However, the telemarketers fail to mention that the executive order did not define “special value,” “collector” or “rare and unusual coins.” Further, “collectibles” are not mentioned in the executive order. Still further, the telemarketers do not tell the callers that on December 31, 1974, President Gerald Ford repealed the executive order that Roosevelt used to call in gold in 1933.

Some promoters go as far as to say that old U.S. gold coins, the most frequently touted coins, are “not confiscatable by law.” The issue of the government confiscating gold is not addressed in U.S. law, but that does not stop some telemarketers from asserting such.

Conclusion

Buying gold has long been an accepted move during periods of uncertainty, but it is not a prudent move if you buy at highly inflated prices. Sadly, people who respond to today’s radio and television ads that hawk gold are likely to pay way too much for their gold.

Investors wanting to buy gold would be much better off if they went with basic bullion products, such as American Gold Eagles, Krugerrands or gold bullion bars, of which several sizes are available. These products can be purchased at 2-5% over the value of their gold content, depending on product and the quantity. Gold bullion bars usually carry smaller premiums than gold coins.

At first glance, buying gold may seem a simple, straight forward process. However, there are dangers, such as falling for a telemarketer’s line that his coins are “non-confiscatable” and somehow have more value because you bought them from him. Basic bullion is the way to go when investing in gold.

 

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