How to Avoid Gold Scams
Gold investing can be an intelligent decision, but you should remain wary of scams targeting investors looking to diversify their retirement savings with precious metals. Scammers often promise large profits but often fail to deliver.
To prevent yourself from falling prey to such fraudsters, always research a dealer before purchasing from them. Doing this will enable you to find an honest company offering reliable service.
High-pressure sales tactics
Gold scammers utilize high-pressure sales tactics to lure investors into making hasty decisions without fully understanding the risks involved. They may claim that an offer is only available for a limited period or that there is an overwhelming demand for certain forms of bullion, as well as any hidden fees such as storage or administrative charges that may incur when investing in precious metals.
Precious metals IRA scams typically begin with telemarketers cold calling investors – often seniors – to convince them of the idea of rolling over their retirement account into a gold IRA. When approached, investors are often directed toward “gold specialists,” who pressure them into purchasing coins at an exorbitant cost and having them shipped off to an authorized custodian recommended by them.
To protect against such scams, it’s crucial to know the value of your bullion and choose a reliable dealer with up-to-date pricing information, like New York Gold Co. This way you’ll ensure accurate prices when purchasing bullion online.
Gold scammers take advantage of investors with false promises by selling counterfeit coins, like Krugerrands, at far lower than their true worth. When customers receive them they quickly discover they aren’t real and comprised of low grade metal or even dirt and sand!
One common scam used by dealers to deceive buyers is charging storage fees. They will set up a fake storage facility, ask the buyer to send money for storage costs and insurance/assay costs, but in reality no gold will actually exist within it or exist anywhere near it at all.
When selecting precious metal dealers, be mindful of their years in business and whether or not they provide a buy-back guarantee. A company offering this guarantee demonstrates their confidence in both the quality of its products as well as being able to return them back to buyers should something go wrong with a transaction.
Gold scams often involve untrustworthy dealers that fail to deliver what they promise. For instance, some buyers claim they offer top dollar for your gold, yet upon receiving it will find that it has been plated or has lower Karat purity than advertised – they may even charge for storage that often occurs in an unsafe area.
Gold scams can be particularly risky for investors looking to add gold investments to their IRAs. Fraudsters will often claim they can buy your physical gold and store it with an IRS-approved custodian, when in reality the IRS does not permit physical gold ownership as part of any retirement plan.
In order to protect yourself against scams, it’s wise to choose a dealer with years of experience and read customer reviews on social media. You could also contact local dealers directly and see how they treat their customers.
Scam artists on social media
Social media has enabled gold scam artists to use targeted advertisements aimed at specific age groups and political views, often targeting elderly people with ads showing above spot price gold or silver products for sale at much higher costs than expected. They employ various tricks such as shaving a little gold from each coin before selling them at full price to avoid detection by unsuspecting investors.
Rare coins are another frequent target for gold scams. Scammers will sell these rare coins at exorbitant prices with claims they will increase in value over time – however, such coins do not recognise by the IRS and cannot be part of an IRA plan.
To protect against gold scams, find dealers that are members of the London Bullion Market Association (LBMA). Be wary of dealers that do not provide certificates of authenticity with purchases and guarantee buyback policies or allow third-party numismatists to inspect products purchased.