Compared to other precious metals, did you know that buying gold bullion isn’t at all times a simple and safe process? It has drawn many operators who take advantage of investors to illegally get money through numerous scams.
For today’s post, we will review the most common gold coin scams to prevent when buying silver bullion and gold bullion.
Do you want to deal with gold and precious metals? Then it’s essential that you do some research on how it actually goes, so you can become confident as well.
Don’t go on a buying spree without equipping yourself with the know-how. As most people say, not all that glitters is gold. After all, you do not want to lose your hard-earned money to some scammers and enterprising counterfeiters out there.
What’s more, the most vulnerable targets of those schemes are mainly senior citizens, as more and more of them are understanding how to use the internet.
The most shocking part here is over 10,000 seniors have already fallen prey to hoaxers offering to sell them gold as an investment, which in the first place, isn’t a good gold ira investment in most cases.
Even though it’s reasonable to buy gold and some collectible coins, you must exercise proper care when purchasing them.
1. Overpriced Shipping Cost
In case you encounter a tempting offer on a website selling gold and precious metals at a promotional price, do not be quick to click—do your research first.
It could be a legitimate website, and the offer could look appealing enough. However, the catch is the massive shipping fee that they only show at the check-out phase. You might argue that since it is an online sale, thus, shipping is part of the price. Therefore, what is the commotion all about?
2. Made-Up Coins
It might sound unbelievable at first, but there are sneaky sellers who do not deal with fake gold coins and counterfeit gold coins. Instead, they trade precious metals coins that do not actually exist.
They also trick buyers into thinking that having many physical gold at home or work is unsafe. They often say there is always a chance of it being damaged or stolen in disasters like floods or fires. But guess what?
Those sellers provide a solution—a safe place to keep a massive collection of bullion coins. They will suggest holding those coins in a safe place to prevent such risks.
3. Fake Gold
One of the most common gold IRA scams is when buyers get something that looks real, but without a thorough inspection, they cannot tell it is fake.
Nonetheless, upon close examination of the material, design, and structure of the coin, it becomes clear. Rather than gold, it is a combination of various metals melted together to make a blurry imitation of a real gold coin.
4. Collectible Gold Coins
Con artists also target new collectors looking for unique gold coins with delicate designs. Inexperienced collectors might purchase fictional or counterfeit coins, paying much more than their real value.
5. Inheritance Scam
Did you know that scammers also prey on greed and loneliness? They pose as inheritors needing partners, bribes, or bank accounts to move their wealth.
Another version of this involves befriending lonely women and requesting money or gold to visit. Such scams exploit emotions such as sympathy, greed, and the desire for immediate profits.
6. Vanishing Company
In this scam, buyers are encouraged to send money for gold they never receive. The scammer might also trick the seller into sending the gold without payment. In return, the fraudster acts immediately to prevent arrest and then vanishes, leaving the victims without any recourse.
7. Bogus Documentation
Thanks to technology, scammers can manipulate documents easily. They alter signatures, dates, and details to reuse documents repeatedly.
Scammers often target the MS-70 grade for gold coins because people desire a “mint state” coin. They lie about the coin’s condition to increase its value.
Untrained buyers might not notice the difference and end up overpaying by hundreds of dollars.
8. Partial Delivery Scam
This common gold IRA scam happens when purchasing gold investment coins from unverified online sources. There are two forms:
- The buyer pays for partial delivery but receives nothing.
- The buyer pays part of the total, receives a small amount, then pays for the rest but gets fake gold or nothing.
To prevent this, research the online company, call customer service, and avoid advance online payments.
Unfortunately, these scammers won’t cease and will persist in employing the tactics we mentioned alongside innovative approaches to deceive individuals.
The positive aspect is that numerous methods exist to identify these gold scammers (you can refer to our guide on avoiding gold purchase scams). Safeguarding yourself from these fraudsters entails conducting thorough research before parting with your money, thoroughly assessing crucial aspects of the gold you intend to purchase, and exclusively engaging with trustworthy and reputable dealers.