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Everything You Need to Know About How To Avoid Gold IRA Scams

Gold IRA Scams

Gold IRA is a special Individual Retirement Account (IRA) for self-directed investing in physical gold as a retirement investment. Investors with Gold IRA can hold gold bullion, gold coins, and other precious metals in their portfolio.

Why Invest in Gold IRAs?

A Gold IRA is a wonderful investment for diversifying your retirement accounts while benefiting from the gold hedging benefits. Holding Gold IRA comes with benefits, including:

  • Special tax benefits as regular IRAs
  • Suitable long-term investment until you retire
  • Direct management of your holdings
  • You make all financial decisions

Gold IRA Scams

If you hold a traditional IRA, you can use it to invest in gold bars or precious metals. However, you must be aware of the potential risks. You must know the options available, potential scams, and how to avoid them.

Some common Scams in Gold IRAs to avoid include:

Home Storage Scam

All physical gold or other precious metal IRA must be stored by an IRA approved custodian, such as an IRS-approved depository facility or third-party vault, and you must pay a storage fee. Keeping Gold IRA at your home is a grave mistake. You can’t even keep it in your safety deposit box. Avoid precious metal dealers marketing home storage IRA precious metals. These dealers promise to deliver physical gold that you can store in your home or third-party vault. However, you can’t keep your self-directed gold IRAs at home because it’s illegal.

Unsolicited Offers

Don’t fall for salespersons who call you out of the blue to market gold IRA. Reputable dealers of gold stocks don’t cold-call potential customers to pique their interest. Legitimate dealers respond to interest from customers but do not force strangers. You should also be wary of salespersons who visit the homes of elderly persons. Some are thieves looking for easy targets to rob.

Non-Delivery Scam

Some dealers never deliver after gaining your trust. These dealers convince potential customers to send them money. After receiving it, they never deliver the bullion coins as promised and cut off communication.

Avoid Gold IRA Scam

Counterfeiting Approved Precious Metals

Selling fake precious metals IRA is another investment scam you must be aware of. Dealers trade fake precious metals, such as silver coins, to unsuspecting investors. This is common in precious metals from Africa and China. Avoid buying precious metal IRAs at heavily discounted prices before you know the price of gold on the market.

Another way to lose money is by buying from dubious dealers who may give you something that looks like real gold. However, you’re less likely to know what real gold looks like if you don’t have expertise. The scammers may get various metals and coat them with a layer of gold.

False Documents

Technology allows copying and creating documents that seem real. Software such as Photoshop makes manipulating documents easy. Scammers can easily manipulate dates and forge signatures. You receive an MS-70 when investing in self directed physical gold bars. However, you must check to ensure it’s authentic. Failing to detect fake paperwork is likely to lose your investment thinking you’re investing in genuine gold bullion.

Rare Good Coins

Some investment scams involve dubious precious metal dealers promising to sell you rare gold coins. These convince unsuspecting customers, who don’t use a financial advisor, to invest in “rare” gold that fetches more than regular pieces or other precious metals.

Warning Signs of a Gold IRA Scam

Knowing potential red flags is very important to avoid losing money to dubious precious metals dealers. Let’s highlight some of these:

Fraudulent Sales Pitches

If you don’t use a financial advisor and you opt for a self directed IRA, you have to do everything yourself. You must receive pitches from dealers selling gold IRA or other approved precious metals. Financial advisors have the knowledge and experience to tell fraudulent sales pitches. However, you’re likely to make wrong decisions according to multiple marketing by various gold IRA companies on various platforms. Scammers are likely to call you and market their precious. Finding a legit gold IRAcompany requires due diligence to avoid wasting your retirement funds.

Celebrity Endorsements

Some gold IRA companies hire celebrities to enforce their bullion coins and gold IRAs. However, seeing your favorite celebrity representing a gold IRA company doesn’t mean it’s best for you to invest in precious metal coins.

Promising Abnormal Profits

Don’t fall for salespersons who promise that you will earn a lot from your individual retirement account with minimal risk. Retirement accounts secure your future, and getting pressured to buy gold or collectable coins is not good investment advice. The salesperson may try to convince you to use a loan to make the purchase for him to earn his commission.

How to Avoid Getting Scammed

Before you buy a gold IRA, you must know how not to get scammed, as highlighted below.

Understand Your Purchase

A self directed IRA is good to add to your retirement account. However, you must understand what you’re purchasing. When planning to hold physical gold for your retirement portfolio, you must choose a trusted and reliable gold IRA company or genuine precious metals dealer.

You also need an IRS approved custodian to safeguard your investment for retirement. When buying physical gold or other precious metal, you must understand how to tell genuine from fake precious metals. Faux gold is attracted by a magnet. You should sldo understand the current price of gold on the market.

Read the Blueprint

Read the blueprint before signing a contract with any precious metal dealer. Due diligence is essential when considering a self directed gold IRA to protect your investment. You must ensure that the contract is in your favor before putting pen to paper. If there’s anything you don’t understand, it’s good to have a financial advisor to give you sound advice.

Confirm your Deposit

Gold investors can get an approved custodian to buy gold and other precious metals as part of the gold IRA. The IRA custodian must then deposit with a reputable depository for safekeeping. However, the custodian must give you all appropriate documentation proving the purchase of physical gold kept in the depository as required by IRA standards. The depository must be duly licensed with the appropriate insurance to keep your gold bullion safe.

Avoid Collectible Coins

You can invest in gold and silver as part of your individual retirement account. However, the account doesn’t approve adding collectibles to your gold IRA. Therefore, be wary of salespersons who want to sell you rare collectible coins. Remember that rare coins are usually pricey, and you’re likely to lose the money you would have invested in gold IRA.

Don’t Buy Shaved Coins

When investing in physical gold coins as part of your gold IRA, be wary of dubious dealers who remove a few grains from each coin. These dealers end up with a sizeable amount by cheating customers. You avoid this by purchasing physical bullion from reliable, trusted gold IRA companies. Check reviews and testimonials from past clients to make a sound retirement for your retirement.

How to Find a Trusted Gold IRA Custodian

You need a self direct IRA to convert IRA funds into gold. This IRA allows owning various investment products than other IRAs. A gold IRA requires finding a broker to buy the precious metal on your behalf and a custodian who creates and manages your account. This will allow keeping your bullion safe.

The custodian may be a bank, credit union, or brokerage firm. This is approved by a state or federal authority to offer asset custody services to investors and financial advisors. A custodian won’t choose the precious metal dealers for you. However, established custodians have relationships with various dealers they can recommend.

When selecting a custodian, consider the following:

  • Transparency of upfront fees to avoid surprises
  • Great reputation from Better Business Bureau and Business Consumer Alliance
  • Flexible approach to customers’ needs
  • Possession of appropriate and necessary licenses and permits

Here’s a short list of companies we currently trust:

Costs That Come With Owning Gold IRA

Owning physical gold in IRA comes with some costs that you must understand. These include:

Seller’s Fee (Markup)

Gold has a going rate, but it has a markup that depends on whether you have gold or coins. The markup varies by vendor, but it’s a one-time fee. Each form of gold has requirements when you want to sell. IRA companies usually add a markup fee on the spot price to facilitate the transaction.

Custodian Fee

IRA accounts usually have higher charges for associated assets and transactions. There’s also a custodian fee for managing your account. You’ll likely pay higher if you choose to use another organization from the one holding your account.

Retirement Account Set Up

Establishing a new IRA account comes with a one-time charge. It varies by financial institution. However, not every financial organization deals with this form of account. Therefore, the fee will likely be more than that of regular accounts.

Storage Fees

The depository charges a storage fee that may be from $50 to $300 annually. This depends on the amount of gold they’re keeping for you.

How Much Are the Gold IRA Charges?

You can get real-time information about your account from your custodian. Two fees annual fees apply. An account fee of $80 and an insurance fee of $150 apply. You can pay a segregated fee to store your holdings separately. Ensure that the company has no hidden fees.

Can I Store Gold IRA at Home?

It’s illegal to keep IRA gold at home. It’s a distribution, according to the IRS, which means that you’re withdrawing from your investment account.

Is Holding IRA Gold a Good Investment?

It’s a great investment idea to diversify your portfolio. You also take advantage of gold’s hedging effect.

Can I roll over 401k to a gold IRA?

Having gold in your retirement investment plan is great during a crisis. Consider a gold IRA rollover d when having 401k but looking to invest elsewhere.


Investing in gold IRAs will diversify your retirement investment better than other retirement accounts. It comes with the potential to give you significant returns. However, you must be on the look to for scammers who may want to swindle your money.