Gold Buyers Beware: Experts Caution Coated Tribute Coins Are Not “Gold Coins”
(Temecula, California) — With the price of gold recently increasing, people who want to invest in the precious metal should be cautious about the potential investment value of gold-plated “tribute coins,” according to the Professional Numismatists Guild (PNGdealers.org), a nonprofit organization composed of many of the country’s top rare coin and currency dealers.
Frequently advertised on television, the tribute items are replicas of popular United States Mint gold bullion coins, but are privately produced and often contain only a tiny amount of gold.
“These tribute replicas may be fine souvenirs and mementos as inexpensive medallions, but should not be considered an actual precious metal investment because they have only a razor-thin coating of gold and virtually no secondary market value as gold. They’re also not a United States Mint product, so they’re not even U.S. legal tender coins even though their designs may be similar to actual U.S. coins,” cautioned Jeffrey Bernberg, PNG President.
“Some of the look-alike tribute ‘coins’ are advertised as containing 14 milligrams (mgs) of 24 karat gold. That equals a minuscule .00045 troy ounce of gold; less than one-thousandth of an ounce. So, if the price of gold is at $1,690 an ounce, then 14 milligrams would be equal to only about 76 cents’ worth of gold,” he explained.
The Professional Numismatists Guild was founded in 1955. PNG members must adhere to a Code of Ethics that prohibits use of high pressure sales tactics and misrepresentation of the value of items being sold. PNG members also must demonstrate knowledge, responsibility and integrity in their business dealings, and must agree to binding arbitration to settle unresolved disagreements over numismatic property. A complete list of PNG member-dealers can be found online at PNGdealers.org.
For a copy of the informative pamphlet, “What You Should Know Before You Buy Rare Coins,” or a printed directory of PNG member-dealers, send $1 to cover postage costs to: Robert Brueggeman, PNG Executive Director, 28441 Rancho California Rd., Suite 106, Temecula, CA 92590. Phone: (951) 587-8300. Email at info@PNGdealers.org, or visit the web site at PNGdealers.org.