Beware the Bait-and-Switch Technique of Some Gold Coin Dealers

The bait-and-switch technique is one of the favorite rip-off tactics of coin companies. How it works is simple. Companies bait you through the door by offering incredibly low-ball prices and then try to switch you to high-end dollar items after they get you there.

As an example, several years ago, I called a man named Vinney, and we worked out a deal for two, gold $20 Liberty Double Eagles. Vinney was excited about the deal. Then he saw an advertisement from a well-known coin company on the Rush Limbaugh Show advertising these same $20 Liberties for 1% above cost, which amounted to $80 per coin less than what our company was selling them for. Vinney was going to cancel our deal and go with the other company because their prices were so much better. I warned him that no company could stay in business selling product for 1% above cost, so they obviously had to have other motives. I told Vinney that when they get you on the phone they are going to try to bait-and-switch you to these very rare, high-priced MS, numismatic coins, and I warned him not to buy them.

I waited a few days and called Vinney back to see what had happened. I said, “Vinney, what happened when they got you on the phone?” Vinney said, “Well, you were right. They tried to bait-and-switch me to those high-priced MS, numismatic coins, but I was ready for them because you had warned me. I bought the coins they were advertising for 1% over cost.”

I chided, “Congratulations, Vinney, you got a good deal. Now, tell me, what are you going to buy from them on your next purchase?” Vinney replied rather sheepishly, “I’m not going to buy anything else from them. They tried to cheat me.” I said, “Vinney, you got the picture.”