Buyer beware. The market for gold coins is infested with scams, multi-level marketing schemes and other unsavory business practices. GoldQuest ensnared millions of people around the world in a multi-level market scheme that led many to overpay for gold coins. If you found yourself ensnared by GoldQuest, you may be left holding coins that are worth much less than you ended up paying for them. Instead of waiting for the gold price to increase to levels that are unlikely in order to recoup your investment, it might be better to sell it for what you can to recoup your costs.
Step 1
Familiarize yourself with the "sunk cost fallacy" and the law of subjective value, two basic teachings of economics. Believing in the sunk cost fallacy is a common error that many people make. That's when you remain invested for too long into a depreciating asset. Essentially, if you spend money on something, that money is gone. It is irrational to remain invested in something for too long that will never pay back what you spent into it. If you were sucked in by the Gold Quest scam, you could be compounding your losses by holding on to the coins in an attempt to make a profit. It's better to sell at a loss than to continue holding a depreciating asset.
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The law of subjective value states that price is subjective. It is set by market supply and demand. A thing is worth what someone else will pay for it. Gold is not a store of "intrinsic value." Like everything else, its worth is completely dependent on the market.
Step 2
Watch the market. Don't act until you get a good sense of underlying trends. The Website eBay has the highest volume of gold sales. Watch how the particular gold coins you hold tend to perform. Search on a daily or weekly basis. If you like, it might make sense to get in contact with some gold coin power sellers to see if they will be willing to part with some of their knowledge.
Step 3
Begin dipping into the gold market once you become comfortable with market conditions. If you aren't getting many bids on your auctions, consider altering your presentation or lowering your price. Keeping in mind the sunk cost fallacy and the law of subjective value, you may not be able to recoup however much money you spent on the coins originally. Instead, focus on just making as much money as you can selling the coins. Part of financial success is learning how to cut your losses.
Step 4
Sell the gold coins at flea markets or swap meets if other sources are not working. Keep in mind that this might be a part of learning your lesson in the sale of the gold coins.
Step 5
Avoid being caught in a multi-level marketing scam in the future. Legitimate business opportunities--unlike the ones offered by Gold Quest--will almost never ask you for money up front for anything. Ordinary gold coin businesses will not sell their wares to you on credit, and these businesses will not offer any strange payment plans. Before you send money to any company, do some research on them online. A few minutes with a search engine could save you thousands of dollars.
Step 6
Warn your friends and family about the danger of pyramid schemes. Your experience falling victim to a scam doesn't have to be a total loss. It's a good learning experience, and your recovery from it can help to inspire the other people in your life while serving as a warning to them. Share what you've learned. Help to create a happier, more honest world.
Tip
Gold is a historically rocky commodity. It's subject to many difficult to predict market forces. People jump into gold as a hedge against inflation, deflation, currency collapse, disaster, and bearish equity markets. In turn, it's affected by broader conditions in the mining and energy industry. It is not a foolproof investment. Invest carefully.
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