Beware of Scams Amid the Current Economic Instability

Economic Instability

With millions of Americans filing for unemployment since the COVID-19outbreak, precious metal dealers are seeing an increase in people wanting to trade in their jewelry and coins for cash.

According to a recent study, the gold market is witnessing frantic selling of gold jewelry in the US and Europe because of the impending economic crisis.

While people are trying to sell their gold for paper money, you can also expect a spike in gold scams. A pawn shop in California recently fell prey to a fake jewelry scam, which alerted law-enforcement across the country. The scam involved people selling gold jewelry worth hundreds of dollars to unsuspecting dealers.

It’s essential to be aware of the ways in which you can be scammed when it comes to gold-selling and purchasing during such uncertain times. You need to look out for the following:

Companies Exaggerating The Value Of Their Collectibles

You’re very likely to come across marketing pitches that try to sell collectible coins as a hedge against the economic crisis. Using an uncertain time in a marketing pitch should be your first red flag. You also need to check to determine what ratio of gold the collectible contains. Companies might try to sell you collectible coins for a higher price knowing your desperation.

You also need to remind yourself that not all precious metals appreciate at the same rate. Some companies will try to sell their silver bullions at an inflated price, implying that its value will appreciate faster than any other precious metal. At this point, you need to look at patterns for yourself to make an educated decision.

Companies Willing To Buy Precious Metals Immediately

Companies that are willing to buy your collectibles without any inspection should be a red flag. Their desperation to buy your gold or other precious metal should tell you that prices might appreciate soon.

If you witness this, hold onto your precious metal for a little while longer and sell it for a higher price.

Classic Overseas Scams

We’ve all been at the receiving end of a too-good-to-be-true opportunity from a foreign country. This is usually showcased as an exciting business opportunity.

These scams are especially dangerous during a pandemic when people are desperately seeking ways to remain financially stable. You need to be wary of scams that ask for your account details, your storage facility, or those that profess to give you a ton of gold for a seemingly small favor.

If you’re looking for ways to invest in gold or silver, get in touch with our experts at Orion Metal Exchange. We are a silver and gold investment company striving to work for our clients’ financial stability. You can visit our website to learn more about our secure gold and silver storage platform.

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