gold coins

With gold trading at around $1,600 an ounce, this most precious of metals seems to many like a smart investment. And if you have a television, you've doubtless seen ads encouraging you to buy physical gold. But think twice: Owning bullion can be more trouble than it's worth, and alternatives exist.

Frightening investors with a tale of government seizing gold bullion - which last happened in 1933. Salesmen suggesting the only "safe" gold investments are coins and commemoratives. A doctor telling of buying $160,000 in gold coins and six months later learning they were worth $80,000 less than...

Glenn Beck's favorite gold company was dragged to Capitol Hill Thursday to answer questions regarding its marketing and sales practices. Goldline, the omnipresent pusher of gold coins in radio and TV ads (and for whom Beck was a paid spokesman), is under fire from Rep. Anthony Weiner for scamming its customers.

Gold bugs like to think gold covers all bases, whether inflation or deflation rules. But major vendors like Goldline are coming under scrutiny for steering investors into coins with markups of 35% -- or worse, customers say.

With fear about the future and mistrust of government on the rise, more investors are buying gold. But they should tread with caution: Gold bugs pitch the precious metal as a safe economic hedge, but the sellers' shenanigans could cost you a bundle.