July 13, 2010
What’s the catch? $130 worth of rare gold coins for $10?
I see these advertisements like this quite often in periodicals. "The 10 most valuable statehood quarters lavishly layered in pure .999 fine gold. A $130 value, yours for the special introductory price of just $10. Just send a check for $10 per set plus $10 for shipping and handling." Includes a handsome cherry wood display, a $50 value.
What's the catch? Are these actually worth much less, even less than the $20 they are asking for including shipping? Is this some sort of scam? I've always been curious.
Filed under Rare Gold Coins by on Jul 13th, 2010. 
Comments on What’s the catch? $130 worth of rare gold coins for $10?
You answered your own question. Yes, of course they are worth much less than the $20 they are asking. How would they turn a profit otherwise?
No company or business is simply going to give away valuable coins at a loss.
The bottom line is, they are taking 10 statehood quarters (regular quarters) which comes to $2. 50, and using electrolysis, or whatever that process is called, or dipping to put a very small layer of gold onto its surface. The amount of gold is so small that it does nothing to increase the value of it in terms of currency.
So they are taking $2. 50 in quarters, probably investing about another $4. 00 altogether to alter their appearance, advertise, labor and overhead, and every 10 they sell they will make a profit of $3. 50 or so.
Its as simple as that. The $130 value is a load of bull. If they can get 150,000 sales they will make a profit of over a half million dollars.
If they said they were worth a million dollars, would you believe it?
They are selling 10 quarters, honestly valued at 25 cents each, which have been plated with a few thousandths of an inch of gold, and packed in a cherry finish display case, all for $20. At best there may be a tenth of a gram of gold all told, worth $2. 50. The cherry wood display may have cost them a dollar. So they are selling gullible people 10 fairly worthless (25 cents) lumps of metal for $20, including shipping and handling. The quarters may look nice, but I would not call them an investment.
Grandpa
The Catch is, Who values these at $130 plus $50. will an independent value support these values?
But all in all I would not like to make the display and gold plate the coins and market them for $10. 00, plus package, ship and insure them for $10. 00.
There would not be much profit in it.
And I think that it might make an interesting display. But the purists would pooh-pah the gold plating.
So I do not think the price paid for is a ripoff if you like that sort of thing.
Also if you wanted to get the coins plated yourself you will find $13 each a cheap price.
I would hope that the gold plating is a good quality and will not deteriorate in storage