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10 Best Ways How to Avoid Gold Coin Scams

How to Avoid Gold Coin Scams

Did you know that hundreds, if not thousands of investors, lost millions to dishonest coin dealers hoping to obtain physical gold as protection for their assets? Keep reading, as this guide will help customers like you by offering ways to prevent scams and choose only dependable and trustworthy dealers to do business with.

If you’re ready, let’s dive in!

The demand for physical gold is increasing and continues to be powerful. That’s because more and more investors are realizing the significance of allocating a portion of their assets to precious metals.

That surge in demand also increased the formulation of numerous new bullion companies. Nonetheless, most wish to take advantage of customers or simply out to scam other people.

On top of that, different types of common gold IRA scams have been going on in the gold market and the precious metals industry for many years. This is a testament to the fact that more people fall for such tricks.

Here are the important tips you need to follow to buy gold safely:

1. Understand What You Buy

Do you want to make a successful gold purchase? Consider the following factors:

  • Design – Authentic gold coins have intricate details that are hard to spot fake gold coins.
  • Weight – Gold is measured in troy ounces and not in standard ounces. One troy ounce equals at least 1.0971 standard ounces or 31.1035 grams.
  • Price – Understand the existing gold price. Ensure you thoroughly understand that bullion items sell slightly above that price (at least 3-5%).

2. Fast Delivery

Pick sellers that provide prompt delivery. You should avoid those who store or delay your sold as much as possible, as physical possession is vital for fast selling.

3. Choose Dependable and Reputable Dealers

Choose coin dealers with an excellent track record and stay away from those with bad feedback. Remember that online forums can offer reliable insights into those dependable dealers.

4. Stay Away from Offers That Are “Too Good to Be True”

Be extra careful of offers that seem extremely favorable or have massive incentives. Remember that bullion products often sell at or above the spot prices.

5. Check BBB and NFA Database

Why don’t you utilize the National Features Association (NFA) database to check the dealer’s regulatory history? On top of that, you can consult BBB for further details on the reviews, ratings, and history of the dealer.

6. Stay Away from Rare Coins

Concentrate on the gold’s weight rather than the coins’ perceived aesthetic or rarity value. You should also be extra cautious of scammers who inflate claims about the value or history of the coins themselves.

7. Various Payment Forms

It’s also essential to look for dealers accepting different payment methods. These payment methods include credit cards, bank transfers, checks, traditional cards, and digital currencies such as Bitcoin or Ethereum.

8. Always Check the Buyback Policy

Always pick a dealer that offers a buyback policy. Doing this will guarantee a smooth and stress-free selling process and experience.

9. Don’t Forget to Ask for Documentation

It will also help if you ask for documentation about the impartial grading of your bullion products. Confirm the independence of the third-party certification.

10. Purchase from Trusted and Legit Dealers

Make it a rule to go for established dealers who deal with higher volumes and provide quick delivery, unlike smaller ones.

Frequently Asked Questions

Q: Is buying gold coins an excellent gold IRA investment?

Gold can be a great investment, especially if you aim to safeguard yourself from inflation. Remember that gold prices are more likely to increase in an inflationary setting.

Thus, buying gold online might not be a good investment in the long term. Gold is an unproductive asset compared to bonds, deposits, or shares.

Q: Where and how to buy gold coins?

You may purchase gold coins from different sources. It’s best to begin with people within your inner circle. It could be a person or a friend you trust. On the other hand, you can buy gold coins from vendors like JM Bullion.

Q: What’s the safest way to buy gold coins?

In case you didn’t know yet, the safest way to buy gold coins is by buying from people around you or those you can trust. That way, you can track the individual if there are concerns with the coin eventually.

On the other hand, you can try a local pawn shop or dealer. It will also help if you ask for referrals or go with somebody with more expertise and knowledge. You can buy gold online only when the dealer is listed in the United States Mint Database.

Q: How can you protect your gold coins?

Always store it in a dry place. Prevent exposing your gold coins to too much direct sunlight or extreme temperatures. We also recommend keeping them from humid places and storing them in dry areas.