Some people invest in collectible coins because the value of many collectibles exceeds their face value as well as their melt value. Experts in this field refer to collective value as "numismatic value," which is determined by various factors such as the type of coin and where and when it was minted. These are referred to as the coin's condition or grade.

Some scammers specialize in rare coin fraud schemes and preying on senior citizens. They often work in large telephone rooms, called boiler rooms, contacting senior citizens to offer them a hedge against their fear of suffering through another Great Depression. Yes, many of our senior citizens experienced the pain and despair of the Great Depression.

If you are seriously considering investing in collectible coins, take the time to get to know the person and the business selling the coins to you. Be careful! It is very difficult to identify fraudulent sellers of rare and cullion coins because they often look and act like legitimate dealers. The fraudulent may live and travel in the same cultural circles. Your best scam-prevention strategy is to learn as much as you can about the coins you want to buy. Buying is easy. Regret is much more difficult to bear.

Here are 10 tips you can use to avoid Rare Coin Scams.

1. Use common sense.
2. Do not be in a hurry to buy.
3. Research the dealer's reputation and reliability. How long has his company been in business? What professional organization is the dealer a member of?
4. Do not rely on the dealer's promise to buy your coins at what you paid at any time.
5. As soon as you receive... Read More