5 Tips to Avoid Precious Metal Scams Online
It’s likely that when you hear the term “precious metals scam,” the first thing that comes to mind is the many schemes out there that prey on unsuspecting investors by selling them overpriced precious metals. People who either don’t know the value of their possessions or are in a rush to make a quick buck by selling items without first researching their value are easy targets for these scams.
Tips to Avoid Precious Metal Scams Online
The following are some useful tips using which you can open gold and silver IRA accounts without making a fool out of yourself:
1. Understand Making an Expenditure on Your Part
Although gold is available in many forms, from jewelry to bullion bars, only a subset of these is actively traded by financial markets. To be eligible for a gold-backed IRA, bars, and coins must be of a certain minimum purity and have the approval of the Internal Revenue Service. For your IRA’s sake, be sure your advisor is well-versed in the topic of qualifying coins.
2. Avoiding Online Gold Scams by Knowing Your Gold Dealer
The Internet has become a go-to place to look for deals on practically anything, but the anonymity of the transaction helps fraudsters get away with their schemes. The low costs on auction and classifieds websites are enticing, but you shouldn’t buy coins there unless you’re confident in your ability to verify their authenticity. Always opt for a trustworthy gold investment dealer.
3. Be Aware of Low Bids
There are a lot of costs associated with buying gold online that you should be aware of to ensure you’re getting a good bargain. Some dishonest gold merchants may use low bids to entice buyers, even if they do not intend to deliver gold at such prices. Don’t be shy about asking inquiries; reputable businesses will gladly explain any costs you can expect to incur.
4. Have a Look at the Return Policy
Dealers who have earned their customers’ trust will always be willing to buy back their gold, but those who sell fake items will not. Make sure the buyback policy is not restricted to a predetermined amount of gold. Find out how long you have to pay it back if it is.
Know Where Your Gold Is Being Kept
Reputable gold sellers will give you the option of sending your gold via an insured delivery service. Many fraudulent businesses will promise to store the gold onsite without providing you with any proof of purchase; even if you do not desire to store the gold personally, identifying a firm capable of this activity is useful for avoiding fraud. Make sure you have proof of your transactions with the home safe, bank, or precious metals IRA account.
Final Word
You can see how easily scammers can fool even fairly educated investors when you buy gold online, even though it may seem simple at first. Fortunately, you don’t have to take on the effort of avoiding gold scams on your own; organizations like Orion Metal Exchange, one of the most reliable gold and silver investment company, can provide thorough information about gold investment opportunities, reliable gold venues, and other precious metals investment goods.
