While researching your options, you need to know how to spot a fake precious metals company. Cold calls are a red flag. Also, look for a precious metals business with a buy-back guarantee. Trusted dealers will always offer a buy-back guarantee. And finally, you need to know the hallmarks of a precious metal item.
Cold Calls are Always a Bad Sign
Most precious metals business scams are easily avoidable if you do your research and avoid cold calls altogether. However, some scammers may still use cold calling to lure you into making a quick decision. The best way to avoid such a situation is to learn how to identify these signs and how to tell if you are being conned.
Scammers will try to lure you into making a snap decision by attempting to bamboozle you with financial jargon and get you to decide without thinking about it. Cold calls from unknown numbers are a common occurrence. These callers may have obtained your phone number from a mailing list or directory. Telemarketers from boiler rooms may use your information to personalize their call.
Another common form of direct mail is a scam; you may receive a postcard asking you to send them personal information. Beware of salespeople who use scare tactics and exaggerated claims to convince you to make a purchase. Be cautious about precious metals investment companies who promise big profits.
This type of pitch is a common ploy used by scammers to lure investors. As precious metals prices are highly volatile, you do not want to gamble with your funds in a Self-Directed IRA. However, the best way to avoid precious metals business scams is to learn about precious metals investment companies.
Remember that gold and silver can be found on legitimate exchanges in almost any quantity, so you should be able to find the metal you need to invest in. During a market downturn, precious metals investment is a good choice for many investors. This is because it has a high price tag as an extra factor.
This is also why precious metals are attractive to scam artists. Fraudsters take advantage of this fact, and their tactics are designed to fool unsuspecting people into purchasing suspect financial products. They will even pretend to be offering free gold, just so they can get money from their victims.
Trusted Dealers Offer a Buy-back Guarantee
If you are buying precious metals online, you are not alone. You can also sell precious metals on eBay. You can get a quote without shipping your item, but you have to take a photo of the item, write down the number of bars and coins, and insure the package. Here is how to avoid a precious metals business scam.
A buy-back guarantee offers added security to your investment. Unlike gold certificates or shares, physical gold is safer to handle. Most online reviews, like the one here: https://investingingold.com/birch-gold-group-review/, will list such options. Genuine precious metals dealers will buy your precious metals back if it does not meet your expectations. This guarantee is a keyway to avoiding precious metals business scams.
By taking advantage of a buy-back guarantee, you will be protected from being scammed by a fake company. Another precious metals company scam is a pyramid scheme. A pyramid scheme promises to pay you for recruiting new investors. You will be paid a commission if you recruit others, and some members display their wealth to lure more investors.
You should avoid schemes that pay you to recruit new investors. While it is tempting to buy precious metals from a precious metals company that offers a buy-back guarantee, you should never commit to anything before you check out the company’s reputation.
A legit precious metals company will still have deals tomorrow, and you should not feel pressured into buying precious metals right away. Make sure you take the phone number of a trusted dealer and call them. By doing so, you will be able to rule out illegitimate precious metal companies quickly and easily.
Know the Hallmarks of an Authentic Gold Item
The hallmarks are symbols used to identify the purity of the metal and to indicate the manufacturer and designer of the item. You can also check whether they are members of the Better Business Bureau (BBB). The hallmarks can be found in many places, including inside rings, necklace clasps, and coin faces.
You will often need a magnifying glass to see them. Be wary of buyers who do not have a hallmark. If you suspect that a seller has a fake hallmark, check with the Better Business Bureau. If the company you are dealing with does not provide a physical address or a physical phone number, it might be a gold company scam. Do not rush into investing if you are not familiar with the business.
Genuine long-term opportunities do not require you to take a snap decision. Also, be wary of bogus claims about the value of the item. Many gold company scams take advantage of the fact that investors are afraid of losing money. The best way to avoid these kinds of scams is to choose a reputable company that has a history of success. The price of gold is not set in stone.
While a precious metals item is worth a certain price, a bogus precious metals company will offer a lower price than the spot value. The price may have fluctuated, but the seller should be willing to wait for it to arrive. This is a sign of a precious metals company scam. The price of precious metals can be as low as $130 per gram. Many precious metals buyer scams involve an attempt to avoid taxation and reporting requirements.
The company might promise an anonymous storage service for your precious metals, which is not true. Most gold experts suggest dealing with reputable dealers. You can check if the broker has a license through the Financial Industry Regulatory Authority by https://www.finra.org/#/ going here or reading online reviews. The hallmarks of a gold item are easy to identify and will prevent you from getting scammed.