Gold Coin Guru Help Needed!

OldMike · October 18, 2005 8:37AM

Hi, I'm a newbie here and also to gold coins. I just received a set of 5 gold coins I purchased from an infomercial on TV. I am a very frugal (some would say tight) person and pride myself on not being swayed by these come-ons and just got caught up in the gold fever. They are 2005 American Eagle $5 gold bullion coins, 1/10 ounce in a nice plastic case. They came from United States Rare Coin & Bullion Reserve, whose parent company is US Money Reserve, in Austin TX. The problem is that they are not graded. I got no paperwork except an invoice. It's easy to see that they are new uncirculated, but I don't know what makes a coin brilliant so I can call them Brilliant Uncirculated. I got them for $48 each. If anyone can shed some light on the company and what I bought, I would sure appreciate it.
Thanks,
Mike

streeter · October 18, 2005 8:42AM

You did ok

gold moves to 575, you should break even.

Coinosaurus · October 18, 2005 9:16AM

Doesn't much matter if they are uncirculated or not. These will sell mostly for their gold content, not condition. As for the price, you did OK considering it was a TV promotion.

2bucks · October 18, 2005 9:23AM

DorkGirl · October 18, 2005 9:31AM

That's not a bad price, they are going for $50 to $60 dollars on eBay right now.

RYK · October 18, 2005 9:46AM

It was probably a teaser deal, and they sold the coins to you at cost. Now, steel yourself for the incessant cold calls from the affiliated boiler room operation and

coinguy1 · October 18, 2005 9:47AM

Mike, please don't let the fact that you didn't get taken (THIS TIME) go to your head. If you continue to buy off of television (or radio) promotions, you WILL get burned.

Also, the question "If anyone can shed some light on the company and what I bought" is much better asked BEFORE you buy.

DaveG · October 18, 2005 10:29AM

I'm not familiar with the company, but it sounds like a coin telemarketer or what some folks might call a "boiler room". Boiler rooms are typically known for high-pressure sales pitches of overpriced material, but sometimes they'll offer something that's attractively priced, in order to enlarge their "sucker lists", or list of prospective customers or "marks".

It sounds like you received five uncirculated 1/10 oz. Gold American Eagles, which are bullion coins manufactured by the US Mint. I think these usually sell for their bullion value plus a premium (perhaps 10%-15%), so with gold at $475/oz. you paid an appropriate price for your coins.

I'd recommend that you get some education before you make another purchase of gold coins, lest you end up getting sheared like a spring lamb.

roadrunner · October 18, 2005 10:44AM

Did you include P&H with that $480? That's where these guys often make the extra money. At $48 each you probably got them cheaper than any local dealer would have sold them to you for.
Yes, you are very fortunate. As Coinguy1 said, next time you might not be so lucky.

If you paid $5 shipping per coin or more, that's where they can get you.

roadrunner

mrearlygold · October 18, 2005 11:30AM

Here's one of their ads

Hurry! Hurry Gather round, todays special, everybody's favorite, for you only!

OldMike · October 18, 2005 12:22PM

Hey, I really appreciate all the info, comments and advice. As I originally posted, I DON'T normally buy anything off infomercials, and also don't buy in an area that I haven't researched thoroughly. I really don't even plan on buying more gold. I did get taken with shipping. I paid $48 each for 5 coins = $240 + $20 shipping = $260, so I have $52 in each coin. But I have been watching ebay (my second home) and have noticed ungraded ones going for $55-60 + shipping. So I feel I could make a little or at least get my money back and learn to stay away from areas I'm not informed on.
Thanks Again, Mike

Gold Coin Guru Help Needed!

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