Gold and silver have been hot commodities for months. You can’t watch cable television for more than an hour without seeing at least one commercial inviting you to BUY GOLD NOW, and other companies are setting up shop in hotels around the country to buy people’s precious metals.

Beware both the sellers and the buyers.

The companies pushing gold and silver as sound investments know the metals market is in a bubble, just like real estate was a few years ago and dot-com stocks before that. Wait for the gold and silver bubble to burst, and then start buying, which is what those companies did years ago.

As for the firms that buy gold and silver in bulk, avoid them altogether. You will not get anywhere close to the true value for your coins, jewelry or bullion.

One newspaper in Texas has done its community a great service by attending the gold- and silver-buying bonanzas where out-of-town companies try to part residents from their valuables. The newspaper sends a reporter to the events with a collection of gold and silver whose fair-market value already has been determined. Then it compares that price with the offers from buyers.

The gap between the two numbers is huge, as is evident in this report:

Another out-of-state gold buying company has set-up shop in a local hotel in hopes of separating local citizens from their valuable gold, silver and collectible items.

This week, GoldRush took out a full-page advertisement in the Beaumont Enterprise announcing “Top Dollar Paid” on items brought to its sale at the Hilton Garden Inn. But just like three previous companies that have come through town promising big payouts but offering pennies on the dollar, GoldRush was right on cue.

On Tuesday, The Examiner brought in its entire supply of coins, scrap gold and bullion - valued at more than $43,000 — and was offered $11,600, or about 25 cents on the dollar.

The company representative went ballistic when the reporter confronted him about the discrepancy. “It is business. It is as simple as that,” he said. “When you go to buy a used car, is it worth what they are charging you. Your newspaper is not worth a dime, I can tell you that right now. You are as low as low gets.” Methinks he did protest too much.

I have a small stash of worn and common silver coins that I may sell once it’s worth enough to buy a digital camera, but if I do, I won’t be dealing with a shyster in a hotel. I’ll find a reputable, local coin or bullion dealer. Everyone should do the same.