How to avoid being scammed when buying gold as an investment

Posted on Posted in Gold articles, Gold coins, Investments

Some basic steps to take:

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1. Wait :If you receive a cold call from a salesperson selling gold or gold coins listen to his/her pitch but do NOT buy. Wait and do further research on the company.

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2. Google search: Do a Google search for the company and the salesperson. If there have been complaints about the company or salesperson, it will show up in the search.

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3. BBB: Check the local Better Business Bureau for a listing of the company and review the reports. How long have they been in business?

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4. Check the competition: Compare the price the company is charging to what other companies are charging. Compare the price to the spot price of gold. All companies that sell gold bullion or gold coins charge a markup. Make the sure the markup is not excessive by comparing it to the spot price of gold.

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5.Delivery: Owning gold means having access to it. If you buy gold insist on taking delivery. You will also need to have a storage plan in place. Physical gold is the safer option than gold certificates. Gold shares listed on a recognized stock exchange is OK as long as you understand that you have purchased a security like Apple or Amazon stock.

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6. Buy back :Ask the company selling you gold what their buy back plan is.Legitimate gold dealers will buy back the gold they sell. You have to know what their pricing policy on buy backs. Normally it is at a discount  to the current market price.