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Unfortunately, Gold IRA scams are extremely common. If you choose this type of investing path, it is essential to protect your money. Although gold has always been a solid investment, there are tricks and thievery that exist. Becoming aware of the pitfalls can keep you safe.
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Or continue below to read about how to avoid gold IRA scams and what to look out for!
Work with Trusted Entities
The key part about investing in Gold IRAs is finding a reputable place for your purchases.
❑ Avoid Salesman Who Work on Commission
Many Gold IRA companies hire salesman who work for a commission. In this environment, you may be pressured into a sale. Do not succumb to the scare tactics that are often used.
❑ Be Wary of High Ratings
The gold industry is not clean. Even though you may find a company with high BBB ratings, you must search for a company with actual user reviews. This is the only way to uncover how the company interacts with clients.
❑ Don't Buy a Celebrity Hook
A popular trick in the industry is to hire a celebrity spokesperson. Even though you see a familiar face in an ad, this does not mean that you can trust the company. In fact, most celebrities will say anything for a paycheck.
Scams Do Exist
There are many benefits that come from Gold IRAs. They offer a safe way to protect your investment's value from inflation and an unstable economy. When you find a trusted dealer, it is easy to buy and sell this commodity.
Unfortunately, the market has not always been straightforward. In fact, numerous gold investment scams have occurred. They bring risk to you and anyone else who wants to partake in this type of investing. Before you lose your assets, it is important to act carefully and to understand the possible fraud that exists.
❑ Fake Coins
One of the most common scams involves fake gold. For instance, you will be given something that looks authentic. However, if you are not aware of the exact structure of the metal, you won’t be able to tell if it is real. Many times, a scammer will melt different metals together.
Also, certain metals appear similar to gold. They may be the same weight as well. In these cases, it is simple to coat other metals with real gold and to pass it off as authentic. In reality, you are stuck with something cheap.
❑ False Documentation
Obviously, technology has made it possible to copy and create documents that appear very real. Software makes it easy to manipulate paperwork as well. It is exceptionally simple to modify descriptions and dates. Also, forging a signature is easier than ever.
When investing with gold, you will receive an MS–70. It is essential to make sure that this document is authentic. When you receive fake paperwork, you may be under the impression that you are getting high-quality minted coins. However, the items that you actually receive are much different.
A common scam is to create documents that sell you gold with a lesser value. In the end, a con artist will make a profit by passing off low-quality goods.
❑ Seems Too Good
It is possible to get a good deal from some companies. However, if the guarantees are extremely high, it may be wise to be leery. Certain sellers will attempt to make deals that are below the standard price. Of course, this should set up a red flag to proceed with caution.
When you are purchasing gold, you should watch for these types of offers. In many instances, they are scams. Although you are trying to make money, you will partake in a deal that will bleed you dry. Before investing, you must carefully consider the offer. If it seems unrealistic, it probably is a bad thing that will make you lose your money.
❑ Coins Don't Exist
Although it seems impossible, there are some scammers who are very sophisticated and may talk you into buying gold coins that don’t exist. Before your place a lot of money on the line, you must physically examine the gold.
Some scammers make claims that moving the money is risky and may cause theft. However, the real dangerous is in buying goods that don't exist. Before making any payments, you should be insistent to see the coins in person.
❑ "Rare" Gold Coins
Certain scams involve sellers who try to push "rare" coins. Sellers will tell you that they are more valuable than regular coins and make you pay more.
It is never smart to invest in rare coins. It is highly possible that the coins do not exist. It is just a way to get your money without providing you with the value that you deserve.
In other cases, the scammers will sell you conventional coins under the pretense that they are "rare." The value is no higher than with any other gold coins.
❑ Expensive Delivery Fees
When you decide to buy gold online, it is easy to fall victim to a hustle. Certain sites will offer gold at low prices, but they will charge extremely high delivery fees. In many cases, the price for shipping will be more than the value of the gold.
❑ Companies that Don't Exist
Certain entities will advertise unbeatable gold prices. However, the companies turn out to be fake. A fraudulent entity will take your money without giving anything in return. You will be left with nothing.
❑ Partial Deliveries
Sometimes, a dealer will make arrangements to have part of your gold delivered separately from other shipments. This is a popular con. In the end, you only receive part of your shipment or fake gold.
How to Avoid Gold Scams
As you can see, there are many types of scams that exists in the Gold IRA market. It is essential to follow some tips so that you can avoid getting cheated.
❑ Comprehend Your Purchase
Since you are putting your money on the line, you must have all of the information that is relevant to the metal that you are purchasing. You should ask many questions about the price and the product that you are acquiring. You should investigate the gold's design and should perform a "ping" test to make sure that the gold is pure.
Faux gold will be magnetic. Therefore, you should bring a magnet when examining the coins. This makes it easier to identify fake products.
❑ Demand Quick Delivery
A reputable company will not hold your gold for long periods before shipment. The process of gold buying should be quick.
❑ Avoid Unrealistic Offers
As previously stated, sales that appear too good will only cause you headaches. Never trust a dealer who will sell below market value.
❑ Unnecessary Design is Not Wise
When a dealer or company places special designs on gold, this is not meant to deliver beauty. Instead, it is added as a distraction so that you can’t check the metal's quality. Although designs may look appealing, they can end in a devastating scam.
❑ Payment Forms
When you work with a legitimate dealer, you will be provided with a variety of payment options. When fraud is involved, you may be pushed to pay by one particular method.
❑ Work with a Trusted Dealer
Obviously, not all gold dealers are trustworthy. It is crucial to work with brokers who have positive reputations. There are a number of websites that provide real customer reviews. Also, you should be aware of independent third-party sites that discuss consumer protection.
As you can see, Gold IRA scams are very common. Don’t let yourself be fooled by great deals or smooth-talking con artists who are out for your money. You must do research and compare different companies before making a purchase. Your goal should be to work with a trusted company that will help you secure your future.
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Best of luck with your investing!