A growing number of precious metals collectors and investors are buying gold and silver online. Doing so provides many advantages, such as a larger selection, better prices, and faster access to the newest releases. However, these advantages also come with the danger of buying fake coins. Below are some ways to avoid becoming a victim.

Avoid Online Auction Sites

The problem with buying coins from an online auction site is that there is no way to physically verify the quality of the coins. You’re bidding on something you can’t touch or feel, and once you’ve won the bid and received your coins if they are fake there is no recourse for getting your money back. When buying a coin in a physical store you can feel its weight, and because gold is a heavy and dense metal, anything that feels too light is suspect. At an online auction site you don’t have this option, so avoid using them unless you’re dealing with someone you’re absolutely certain you can trust.

Avoid Buying Coins Which Are Less Than The Spot Price

Any gold or silver coin which is selling for less than gold and silver’s spot value should be regarded with suspicion, because it means either one of two things. Either the coin has been stolen and the thief is looking to make quick cash by selling it or the coin is counterfeit. Either way, authentic coins should always be higher than the spot price of the precious metals they contain.

Commemorative Coins Are Not A Good Option For Investors

Various mints throughout the world produce commemorative coins, including federally owned and private mints. While these coins are great for collectors or those looking to a buy a gift, they are not a good option for investors. The reason for this is because commemorative coins routinely sell for twice or even three times the metal’s value contained within. This means it will be difficult for you to sell these coins for a respectable return.

Only Buy Gold And Silver Coins From Authorized Online Dealers

Because anyone can put up a website with photos of gold and silver coins that they claim to have for sale, the only real way to protect yourself is to only buy from dealers who are authorized. An authorized dealer is a business that has a relationship with a mint. They will act as affiliates for the mint and will acquire their coins from them directly. This means every coin they have for sale can be verified.

Research On Online Dealers Extensively Before Making A Purchase

Never buy coins from an online dealer until you’ve taken the time to research their customer service and reviews. How long do they take to answer emails? If based in the U.S., are they listed in the Better Business Bureau? Are they accredited? Have they been in business for more than 5 years? All these questions should be answered before you pull out your credit card to make a purchase.