How to Avoid Precious Metals Fraud
Investing in precious metals in order to protect your savings or money is a very common practice worldwide. There are many precious metals people invest in, like gold, palladium, platinum, silver, etc. People choose to invest in these metals for their retirement plans as well.
With people all around the world investing in these precious metals, there are a number of scams that are common. Fraudulent dealers or companies can trick people into investing in the wrong metal at the wrong time or not offering pure precious metals that qualify under the laws and regulations. These precious metal scams increased during the COVID-19 pandemic because a lot of people who had never invested before started to do it to protect their savings and money in times of crisis.
You’ll have to be very careful when dealing with any precious metal dealer or a company and aware of the red flags. In this blog, we’ll discuss how you can identify a fraud dealer or company, what are some common signs of fraud, and what you should do to ensure your investment is safe and secure.
Common Precious Metal Frauds
Buy Now, Pay Later
You might have heard about buy now pay later schemes in multiple industries. In precious metals, these schemes are usually a fraud. Dealers would offer any precious metal or its shares from a fake precious metal mining company at a small fraction of the original price. The buyer will think it’s a good deal. Soon after the purchase, the dealer goes missing or stops returning the calls. The precious metal is nowhere to be found, the company doesn’t really exist, and the money is gone as well.
Fake or Impure Precious Metals
Dealers or company selling gold or any other precious metal at a lower price than the market rate is highly likely a scam. The gold is either fake, impure, or just coated with gold.
Phone/Internet Scams
Phone and internet scams are very common, and these scammers usually target the elderly. Your loved one will receive a call asking them to invest with a certain company. The person on the call will give crucial market details, the history of the precious metal, and the future prospect, luring a person into investing with them without even seeing the gold.
Red Flags for Dealers/Company
Salesman Asking You to Buy/Invest Immediately
If a salesman is repeatedly requesting you to invest or buy immediately due to any reason like limited slots, limited time offer, etc., don’t fall for it. Scammers usually try and hurry people to make a decision so that they can’t research properly. Make sure you examine everything and do your research before making a decision.
Salesman/Company Not Revealing Details
A salesman or a company not revealing the major details about their work, the contract, or any other question you ask is a major red flag because reliable companies will always put all the details and the clauses of the contract or deal in front of you.
Salesman Says a Particular Precious Metal is Low Risk
If a salesman is saying a particular precious metal is a low risk, they’re lying. It doesn’t necessarily have to be a fraud. The salesman might just be trying to make a sale, but what they’re saying still isn’t true. No precious metal is low risk due to its volatile nature in the markets.
If you’re looking for a reliable precious metal investment company in the United States, Orion Metal Exchange is perfect for you. We’re a PCGS (Professional Coin Grading Service) Authorized Dealer. We offer gold coins, platinum coins, palladium coins, silver coins, and gold and silver IRA accounts. Get in touch with our team to learn more about our services.
