1. Avoid putting more than 30 percent of your overall holdings in gold.

Reason: In the current economic environment even the most optimistic investor could lose faith in paper money. However, a properly positioned gold investment at 10-30 percent of holdings might protect your entire portfolio. So if your paper assets lost value, your gold holdings could compensate for your losses through its ability to offset sharp declines in the equities, bonds and currency markets.

2. Avoid a company that accepts credit cards for a gold purchase.

Reason: Credit card merchant accounts charge a 2.5–3 percent transaction fee, meaning you're paying 2.5–3 percent more than you need to. That's not good investing.

3. Avoid companies with less then perfect BBB report.

Reason: One or two complaints may be normal for a large company with thousands of clients,  however more then 5 complaints and you have reason to be concerned.

4. Avoid dealing with a company without a signed account agreement.

Reason: When you invest in precious metals, it's a financial transaction, and any company that participates in a financial transaction without an account agreement might not be your best choice.

5. Avoid dealing with a company that cannot provide a long-term chart on any coin they recommend.

Reason: It is always important to separate opinion from fact. Insist on a twenty-year chart, so you can quickly determine the coins upside potential and downside risk.

6. Avoid companies with celebrity or radio personality endorsements. This tip is so important that you want to ask any prospective firm about endorsements.

Reason: Although most firms with such endorsements are established and reputable, such firms on average charge from 4–8 percent above discount exchanges selling the exact same products. Celebrity and radio personality endorsements are expensive; avoiding them is the easiest way to save your money.

7. Avoid borrowing money or leveraging precious metals if you are buying for safety or long term.

Reason: Some dealers will suggest that you borrow money to own more gold than if you purchased it outright. Recommending leverage works great for the dealers. They can sell you more gold than you can afford and charge interest as well as storage fees. However, if the metal does not move up fast enough, your profits are diminished due to fees. Over time, the majority of investors in leverage programs lose money even if the metal is rising.

8. Avoid dealing with a company that takes more than 10 days to deliver your precious metals investment.

9. Avoid buying gold from auctions or non-licensed dealers.

Reason: On average, our staff handles 40 calls per week from investors who thought they were getting a great deal at an auction, when in fact they overpaid or received inferior products.

10. Avoid buying commemoratives or exclusive-offer gold coins.

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