Buying Gold and Silver on eBay Safely - Part 1 - Read the Listing Carefully

Have you been thinking about buying gold andversion of a coin or bar. So a "1 Ounce Replica
silver on eBay?U.S. Gold Eagle" is likely a copper or nickel copy of
Then learn how to avoid the common pitfalls ofa Gold Eagle with a thin layer of 24 karat gold. It
buying gold and silver through auction sites in thiswill have value but nowhere near that of an ounce
3 part series of articles. The keys to not gettingof gold. If you are paying more than a few dollars
scammed are 1) Pay attention to the listingyou may be getting ripped off.
details; 2) know what you are bidding on; and 3)Be careful when buying gold nuggets or flakes.
know the market price of gold and silver.The problem with these items is that you do not
I discovered these tips as I have just startedknow the purity of the gold in a nugget or flake.
investing in precious metals and looked to eBayThis is even more difficult with flakes as each
for some quick deals.flake may have different amounts of gold. When
In part 1 you will learn what to pay attention to inyou want to sell these forms of gold they will
the auction listing so you don't get scammed.need to be assayed for purity. Flakes would
You must read the listing very carefully.probably nave to be melted and refined before
One thing I noticed in many listings is the attempttheir value could even be estimated.
to mislead novice buyers of gold and silver.Many collectable coins are auctioned on eBay.
Beware of terms such as: "replica", "copy", "MILS",These can be valuable but unless you plan on
"flakes", "dust", and "nuggets." When these termslearning a lot about coin collecting (numismatics), it
are in the title - be sure to pay close attention towill be hard to determine a fair price. Theses
the entire listing.collectibles may contain gold and silver but their
These are a tip off that you may not get whatmarket value is determined more by their rarity
you think. The biggest scam I noticed is the usethan their precious metal content. Thus, their
of the word "MILS." This is a fancy word meaningvalue will be harder to determine when you want
the product is merely plated with gold or silver.to sell them. If you are buying as an investment -
Most of the weight is likely copper or some otherstick to bullion products.
cheap and abundant metal. A standard MIL is a 60I would recommend bidding only on gold/silver
millionth of an inch. So 100 MILS is about.15 mmbullion coins and bars that are pure. Avoid replicas
or 1 tenth the thickness of a U.S. dime. That oneor plated items at all times. In the next article you
ounce "gold bar" contains only a small amount ofwill learn how to figure out what you are bidding
actual gold the rest is practically worthless.on. Find out how much gold is being sold and how
When you see the words copy or replica this is amuch it is worth.
sure sign that you are bidding on a gold plated