For generations, investors have flocked to gold and silver as a secure choice for their hard-earned money.
Unfortunately, the market can be full of fraudsters who are only looking out for themselves.
Luckily, you can stay away from these shady characters by taking some time to go through reviews about them and any active lawsuits they may be involved in since this will help lead you toward reliable companies that won’t disappoint or deceive you.
Identifying scams in precious metals investments should be your priority. Here’s some information that can help you determine if you’re being tricked or not.
1. Know the Bullion that You’re Buying
Research the price, weight, and design. Monitor the market, and purchase only the South African Krugerrand, Canadian Maple Leaf, and American Eagles, especially if you’re planning to open an IRA.
You might have heard about the Lear Capital silver scam at some point, and if so, read reviews about that specific company and learn about the current spot price of the coins. Don’t believe in high-pressure sales tactics, and beware of the ones that promise high profits.
The weight of jewelry and bars are often measured in troy ounces. This is equal to 1.097 oz or 31.10 when converted into grams. Most coins have minute details for their designs, so you need to know the distinctions before buying to avoid fake ones.
2. Fast Shipping Times
Always select the companies that can provide prompt delivery times, which is a non-negotiable factor. Don’t settle with many companies who want to hold on to the bars and coins and those who take months to deliver what you ordered.
It’s best to possess the metals so you can sell them whenever you need funds.
3. Get in Touch with Reputable Sellers
Look for sellers with excellent track records and good critiques from previous clients. Read their reviews on the internet and avoid those considered scams by their investors.
You know that you’re dealing with the right ones when they can offer you a wider selection of products, very low shipping fees, and competitive pricing. They also have exceptional customer support that can answer any questions.
4. Offers that Have Higher Returns Might be a Scam
If it appears too good to be true, proceed with extreme caution. Be aware of swindlers looking for easy money by making exaggerated and unproven claims about their bullion products.
Existing investors attempting to persuade you into buying in coins or bars that are cheaper than their current market value should also raise a red flag so never buy below the spot price.
When you encounter these offers, and there are a lot of freebies and giveaways, it might be too good to be true. Beware of the promises and those who don’t let you have possession of the metals when you’re buying them.
Most companies are charging fees and premiums for the business to stay afloat. There are also minting expenses to be considered so run away from the ones offering these packages.
5. Big Dealers are More Legitimate than Smaller Ones
Although there are trustworthy start-ups, you’re always better off with the big leagues. They are already established in the industry, and they can satisfy your needs with delivery times that are faster and more reliable.
After the payment method has been cleared by the bank within 2 to 5 days, you can expect your commodities to arrive within the week. The smaller ones have longer turnaround times.
6. Ask for Proper Paperwork
Silver bars and gold coins generally have some form of certificate and documentation. The paperwork is included in the package, and you can always verify the authenticity of the jewelry, bars, and coins you’re buying with pawn shops or other third-party services.
7. Avoid Collectibles
Nowadays, many people are interested in numismatic or collectible coins.
However, some are not accepted when you want to open a self-directed individual retirement account, and their prices are way higher than the standard American Eagle or Canadian Maple Leaf that you can see more about them when you click this link here.
Always choose the ones with more reasonable prices and focus more on the metal content rather than the perceived rarity of a certain history.
8. Fraud Involved with Precious Metals
Ponzi schemes: This scam typically involves promising investors high returns with little risk. The reality is that there is usually no bullion, and the money invested is used to pay off earlier investors.
Storage scams: In this kind of fraudulent process, a company promises to keep your gold or silver in a safe location, but either doesn’t deliver on this promise or charges exorbitant fees for their services.
Fake gold or silver coins: Several counterfeit metals are circulating from materials such as lead or brass. These are often passed off as genuine, leading investors to believe they have made a valuable purchase when they have not.
If you want more alternatives, you can always invest in precious metals with a lot of industrial demand. Those used in solar panels, electronics, and automotive industries can be a great hedge against inflation.
Palladium and platinum are valuable as tech products because they are used in hard disks, electrodes, and batteries, and they can also show up in medical and dental devices, so diversity can be an option for you if you want.