Steve Rand
General Manager / Sr. Precious Metals Advisor
Steve Rand is the General Manager and a Sr. Precious Metals Advisor at Scottsdale Bullion & Coin. He brings over 20 years of experience in the physical precious metals markets.
Brian Conneely
Precious Metals Advisor
Brian Conneely is a Precious Metals Advisor at Scottsdale Bullion & Coin. He's worked in the precious metals market since 2009, trading commodities and futures before moving into physical gold & silver investing.
Gold coin demand is soaring as retail investors follow the lead of central banks, turning to physical gold to diversify and protect their portfolios. Thanks to their portability, variety of sizes, and long-term value, gold coins remain one of the most popular ways for everyday Americans to own physical gold. Yet, with growing demand comes increased exposure to potential pitfalls.
In this week’s The Gold Spot, Sr. Precious Metals Advisor Steve Rand and Precious Metals Advisor Brian Conneely explain some of the most common misleading practices in the gold coin market, the best ways investors can protect themselves, and how SBC might be able to help.
Gold Coin Demand Skyrockets
The gold market news cycle is usually focused on record-high gold prices and overall gold consumption. However, the nuances are equally impressive. Over the past few years, coin purchases have been on a steady climb, underscoring the growing interest among retail investors.
- According to the World Gold Council, global demand for bars and coins hit 325 tonnes in Q1 2025, 15% above the five‑year quarterly average.
- Q1 2025 investment demand, including coins, hit 552 tonnes, a whopping 170% surge from Q1 2024.
- The Royal Mint reported a 208% rise in gold coin sales by weight in Q1 2025 compared to the year prior.
This heightened interest means more investors should be aware of the potential stumbling blocks involved in purchasing these popular precious metal assets.
Modern Graded Coins
One of the most common misleading tactics in the gold coin market involves overhyping modern graded coins. Some dealers will artificially raise a coin’s resale value by pointing to its pristine condition. However, a gold coin’s value is determined by various factors beyond condition, including scarcity, age, historical significance, and numismatic appeal.
“When you're looking for a graded bullion coin, you want to make sure you're not being sold a date that is very common but is being compared to a rare one, which is the exception.”
Steve Rand
General Manager / Sr. Precious Metals Advisor
Most modern coins are sold directly after being minted without ever entering circulation. Thus, perfect coin grades are the standard, not the exception, greatly diminishing their value. That’s a far cry from older coins which were tossed in bags, shipped across the country, and endured decades or even centuries in circulation. Among these historic specimens, coin grade can be a reliable indicator of value, but not for modern versions.
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Dealer Exclusive Coins
Another dubious sales routine involves dealer-exclusive coins. Some dealers will strike deals with private mints for the exclusive rights to sell a specific type of gold coin. The perceived rarity of these unique products convinces many investors to significantly overpay for their true value. These sellers often lean heavily on strategic sales language such as exclusive, rare, or scarce to manufacture a perception of heightened value.
“Some companies will use a variety of sizes, for example, fractional-sized silver or gold coins that are exclusive to them. The problem there is you can’t compare it to anything. They set the price, and it can be anything they want it to be.”
Steve Rand
General Manager / Sr. Precious Metals Advisor
The market value of these coins tends to fall far below their sales price. The main issue is that these coins have nothing to be compared against. The dealer with exclusive rights can sell the asset at whatever price they want, leaving investors in the dark.
Free Gold & Silver
Few things are more tempting to first-time precious metals buyers than the promise of getting some free gold and silver. That’s exactly the angle some misleading precious metals dealers are using to lure new investors. These offers often come with strings attached, such as purchasing a certain amount of gold coins or opening a gold IRA, in exchange for a “free” bonus in gold or silver.
“The cost you're paying for a lot of these dealer-exclusive coins or similar products is so exorbitant, so much higher than what you should be paying. That’s where they’re making their money.”
Steve Rand
General Manager / Sr. Precious Metals Advisor
As the saying goes, there’s no such thing as a free lunch. In most cases, the dealer simply inflates the price of another part of the transaction to cover the cost of the giveaway. Usually, these deals come with above-average dealer premiums. While it may feel like you’re getting something extra, you’re ultimately paying full price, just packaged as a promotion.
A Troubling Pattern Emerges
Over the past few years, the precious metals advisors at Scottsdale Bullion & Coin have noticed a troubling pattern emerging among misleading sellers. We’re seeing the same products, the same sales tactics, and the same packaging strategies being repeated across multiple companies, almost as if they’re all following the same playbook.
The risk is heightened as a wave of new investors floods the market, giving these opportunistic sellers more targets. As a result, investors need to exercise greater caution than ever. When multiple items of varying sizes get bundled together, with no easy way to compare prices or determine fair value, it becomes far too easy to overpay without even realizing it.
See If We Can Help
If you think you may have overpaid, been misled, or are simply unsure about the value of your current holdings, you’re not alone.
Fortunately, there may still be options available. We’ve helped many investors navigate these situations. While we can’t promise a solution every time, we’ll do our absolute best to help.
If there’s a way to improve your position, we’ll walk you through it step by step. And if not, we’ll let you know that too. There’s no pressure, just clarity.
Reach out to us today for a straightforward conversation about your portfolio and see if we can help you get back on track. Contact us today by calling toll-free at 1-888-812-9892 or using our live chat function.
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