Investment 101: Ways To Avoid Gold Scams
Post published in collaboration with Media Buzzer
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Gold is certainly the foundation of global wealth, and the yellow metal can make for an ideal investment, especially if you want to hedge against inflation. Like any other commodity, gold has been the medium of unscrupulous individuals looking to cheat people, and with that in mind, here are some of the known gold scams to avoid when you are buying or selling this precious metal.
- Know Your Gold Dealer – By far the most common way to be cheated is to deal with a shady gold dealer. You should never buy gold online if you do not know the seller, and never make an online payment. Rather, visit the gold dealer’s offices, where you can pay in cash and take physical possession of the gold. A website may look very impressive, but that really doesn’t mean anything more than the owner has invested some money in the site’s construction.
- Check Social Media – Social media sites are good for finding out how good a company’s service is. People will talk about them on Facebook and Twitter. Always go for the leading bullion dealer. If you are based in Australia, you will want to buy gold from the reliable dealer City Gold Bullion. They also have offices in Brisbane.
- Avoid Gold Dealers Who Cold Call – The gold bullion market is not about pressure selling, in fact, a reputable gold dealer would never approach a person and offer their services. If you are looking to buy gold, use Google to locate a reputable dealer and go to their offices to buy the gold, which means you can take physical possession of the gold. Cold calling is a practice that only dubious organisations do because that is the only way they can drum up new customers.
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- Avoid Gold By Mail Offers – There are certain websites where they offer above spot prices for gold, and you are expected to mail the gold to an address using a prepaid envelope, and upon receipt, the company promises to wire you the money. Avoid this kind of business, and you are not likely to receive the amount promised, if you get paid at all. For some further reading on how to avoid gold scams, there are articles available online that are well worth a read.
- Unusually Good Deals – The old saying “if it looks too good to be true, it probably is” certainly applies to gold trading, and any company offering above spot prices for gold should be avoided. Any company that is selling cheap gold probably isn’t selling the real thing. The only situation where selling cheap might be genuine is if an individual needs fast cash, but even then, you should test the gold in question to ensure it is genuine.
If you apply a degree of caution and common sense when dealing in gold, you should be able to avoid scams, and never pay for gold that you cannot take physical possession of, as this leaves the door open to fraud.