Gold is always a good investment — unless an investor falls victim to a gold scam. Because gold is so valuable and so perpetually sought-after, thieves and fraudsters take advantage of eager investors with various scams that take hard-earned money and provide nothing of value in return.
Considering that the price of gold is likely to climb in the coming months, investors will likely be on the hunt for gold coins to protect their wealth amidst economic insecurity. Knowing about possible scams and how to avoid them will keep investors safe as they buy and sell bullion.
8 Common Gold Scams to Watch for
Investors who own gold understand how exciting it is to hold something with such indelible value. However, before an investor gets their hands on any gold product, they need to be certain they are not encountering a scam. Some of the most common gold-related scams include:
Fake gold. Some investors pay the real gold price for an item that is essentially valueless because it is made from materials like iron pyrite or brass.
Fake documentation. Real gold products tend to come with documents of authenticity, but fraudsters can fake these documents to make fake products appear more real.
Partial delivery. Plenty of online scams involve taking an investor’s money and failing to deliver the purchased product. Additionally, scammers might take a deposit, deliver a portion of the precious metal purchase, receive the full payment and fail to complete the delivery.
Collectible coins. Collectible gold coins can be lucrative, but only if an investor can be certain that a coin or coin series is valuable. Some scammers convince investors that coins are rare or otherwise carry immense value when they are effectively worthless.
Overpriced shipping. Some online gold stores are selling real precious metals at lower than the current price of gold. However, upon checkout, investors are hit with massive shipping costs well beyond the gold price.
Non-existent gold. One of the most difficult scams to spot is that of gold that does not exist. Because gold is a physical asset that can be difficult to manage in large quantities, some investors choose to keep their gold collections in escrow accounts managed by marketplaces. Unfortunately, some marketplaces do not have any actual gold products available, which means investors are spending their money on nothing.
How to Avoid Being Scammed
Fortunately, there is one easy way to avoid all these gold scams and more: shopping with Scottsdale Mint. Scottsdale Mint is one of only a few operating mints in the United States, and we pride ourselves on the purity and quality of our precious metal products. In fact, we are so confident that our investors will be pleased with their purchases that we offer a 100% guarantee on the weight, purity and precious metal content of every item in our store. What’s more, investors can compare the current price of gold with our gold products by checking the ticker at the top of every shop page or by viewing our live silver price chart.
Investors who want the confidence to shop for gold and silver bullion elsewhere can use these tips to be certain that they are not falling for a simple gold scam:
Understand the price, weight, value and other attributes of the gold product. Legitimate sellers will make this information available to buyers. Investors should familiarize themselves with the industry to understand terminology and patterns common to typical gold sales.
Use reputable dealers. Scottsdale Mint is one of the most reputable dealers of gold and silver in the U.S., but there are other trustworthy names in precious metals. If a website or dealer does not have an abundance of reviews or information available online, it likely is not trustworthy.
Avoid too-good-to-be-true offers. The price of gold is the price of gold. Anyone selling gold items for dramatically less than the current gold price should immediately seem suspicious and be avoided.
Look for a buyback policy. Many investors will eventually sell their gold, and reputable dealers will happily buy it back. Investors can expect around a 4% charge for legitimate buybacks.
Know how to test precious metals. Investors should practice pinging metal, have a magnet on hand, look for certain hallmarks, feel the weight and perform various other tests to ensure the authenticity of gold before and after they buy.
Should You Buy Numismatic Coins?
Numismatic coins, also called collectible coins, are risky for investors. Though rare coins can be fun to find, it takes a keen and knowledgeable eye to discern legitimate and valuable coins from coins that are basically worthless. An investor can put time and energy into becoming a skilled numismatist, but until they feel totally confident in their ability to identify valuable collectible coins, they would do well to avoid storing a significant amount of wealth in collectibles that lack precious metal content.
Avoiding Scams With Scottsdale Mint
There are several reasons investors choose to buy gold bullion from Scottsdale Mint, but security is one of the most important. Our customers know that they will receive some of the highest quality gold and silver products available, which means they are putting their money into an item of value that will last. Investors interested in learning more about what Scottsdale Mint does to protect its investors can talk to our customer service team today.
