Grading gold bullion coins --another scam technique some gold bullion dealers use

Grading gold bullion coins: Bullion coins like the gold American Eagle or the platinum American Eagle are not collector coins. The rule is that only old United States numismatic or collector coins can be graded. Grading gold bullion coins is another scam technique that some gold bullion dealers use. Gold bullion coins do not have any collector value, and are, therefore, not worth a penny more than bullion value. It is a scam to grade them because it does not increase their value or make them a numismatic coin.

A few years ago a lady sent me a list of the coins she had bought from a gold bullion dealer in Texas. She had bought two 1999 gold American Eagle sets, a $5 coin, a $10 coin, a $25 coin and a $50 coin. These coin sets were graded by one of the two independent grading firms. And each of these coins was in a plastic case. There were no grades on these coins, but they were in official plastic cases.

The amount of bullion gold among the four coin sets was 1.85 ounces, worth approximately $520 at that time. She paid $2,400 for the four coins, or $1,880 in premium for coins that had no numismatic value. She also bought a one ounce, 1998 Platinum American Eagle from the same company, and it was graded MS69 and certified and encapsulated by one of these two firms. She paid twice what she needed to for the bullion platinum coin. The coin company had convinced her that it was a rare coin because it had been certified by one of these two firms. One of my suppliers explained to me how this scam, grading gold bullion coins, works:

Coin companies will send 10 or 20 coins of these bullion coins to these firms and tell them to pick the best four or five coins and put them in plastic cases and grade them at MS65 to MS69. These firms get about $20 a coin to do the dirty work, so it is a good money maker for everyone involved, except, of course, for the buyer.