They are offering coins worth less than the market value of the precious metal, and they are selling paper certificates representing less than market amounts of precious metals.
This is a scam.
Who better to scam than conspiracy theorists who seem to believe anything they are told as long as it includes references to the government being evil and oppressing them.
What do you think the “market value” of the precious metal is?
The United States Mint sells coins stamped “FIFTY DOLLARS” with one ounce of gold content, at a price of $831.
They sell coins stamped “ONE DOLLAR” with one ounce of silver content for $30 - so does that mean that the one-ounce Liberty Dollar round is 33% off at only $20?
My guess would be no, but can you get US dollars for gift cards? No there too. Don't misunderstand my position. I don't think it's a good idea to invest in these things, but I think that people ought to be able to make that decision for themselves, and if they want to go ahead and do it without the feds blocking it.
This is a scam.
So are gift cards, but people buy them in droves.
Who better to scam than conspiracy theorists
If you're dumb enough to fall for it then you pay. At least they get the value of the precious metal in the coins the bought. If you buy maple leaves or Kruggerands or commemorative coins from the Franklin mint, it's exactly the same thing - you pay a premium over the value of the gold for the privilege of getting the metal. I don't see the point in shutting these guys down and letting the aforementioned business models continue.