It never fails.
Watch for it.
It may come around sooner than you think.
Whenever there’s talk of real estate bubble’s bursting, stock market’s falling, and other signs of economic woe, the talk turns to gold as a risk management tool to avoid inflation.
No problem there. I agree. I’d love to own a ton or so myself.
The spin off of this logical talk in the home business market that resurrects itself from time to time are the network marketing companies promoting “gold coins”.
I don’t even have a particular program in mind.
Haven’t seen one lately.
But I sense one - or more - are coming.
Remember, bullion coins that are 90+% pure gold or silver are priced by the underlying commodity value of the gold or silver.
Those selling such coins earn a percentage… but not enough of a percentage to fund a network marketing plan.
The coins chosen for these schemes are so-called “rare” or “numismatic” coins whose gold and silver content are usually far below “bullion coin” value and price supposedly derives from their value as collectibles. They have the kind of profit margin that makes it possible to use within a network marketing plan.
There’s just one problem.
If you’re getting a coin as an inflation hedge just in case the economy goes down the drain and inflation devalues the dollar, the market for collectibles will decrease and your coins may become worthless with them.
Unless you’re an expert on rare coins, you may be poised to lose money in many ways in such “business opportunity”.
If you’ve got the money, buy the bullion coins while the price is low(er) … and if you’re brave enough to buy numismatic coins, I’d do so through a dealer, not an MLM program.
Gold Spot Price on January 13th, 2007 at 8:40 pm
I’ve seen many ads recently that discussed a rare gold coin and they were remaking it for a rare limited time. I cringe to think people are buying those thinking they have value.