Before you invest a single hard earned penny, please read our tips on how to avoid common precious metals scams.
- Research Each Company Thoroughly
Many of the common gold investment scams which are found today involve companies which are relatively new, and were started simply because of the high price and demand of precious metals today.
- Check with Your Local Better Business Bureau (BBB)
If you are dealing with a local broker or company, check with your Better Business Bureau for any complaints or legal action taken against the company. If you are planning a gold investment in India then this step is not effective, and other methods of research may be needed.
- Check the Online Gold Investment Forums
If you want to avoid gold investment scams, some of the best places to research potential companies and investments are the online forums about investing in gold and other precious metals. Many forums have posts concerning companies that are scams, so you can avoid them.
- Never Travel Out Of the United States to Purchase Bullion
When you are considering all of your gold options, never travel outside of the United States with large amounts of money to purchase bullion. Some scams lure investors to foreign countries, where the investor may be robbed or even killed.
- Use the Internet with Common Sense
Online offers for gold investment can be legitimate or they can involve scams. Use common sense and evaluate each offer before making any final investment decisions. There are many fake gold coins and bars being offered online.
- If an Investment Seems Too Good To Be True, It Usually Is
A number of gold investment scams involve claims which seem too good to be true, and this is an indication that a scam is being perpetrated. Gold investment accounts, gold futures, and other investing types which do not involve taking possession of bullion can be a higher risk for fraud.
- Only Use Trusted Companies To Buy Bullion From Or Invest With
If you are looking for gold bullion for sale, or a company or fund to invest in, make sure the company you choose has a reputation and history in the industry. There are many well-known and respected companies available, and you can avoid any scams by choosing a reputable one instead of an unknown.
- Only Choose Quality Bullion With A Stamp Showing Weight, Quality And Manufacturer
If you want to avoid potential gold investment scams, make sure you choose a high quality gold like Credit Suisse or PAMP. These products carry the name and stamp of excellence, and are sought after by investors.
- Buy in Small Amounts Initially
To avoid large purchases of fake gold bullion, you should always make a small initial purchase. This allows you to become comfortable with the supplier and to assess the quality of the gold you are investing in. Do not place large orders until you know and trust a company or supplier completely.
- Watch Out For Nonexistent Gold
Gold investment scams can include mining shares and gold bullion which do not exist. When you invest in shares of a company or in gold that is purchased and stored for you, you may never see anything tangible to show your investment was actually made. After a little time the agent or broker disappears, and so does your investment capital.