4 Popular Gold Investment Scams in 2023 And How to Avoid Them

Hi,

Navigating the gold market in 2023 requires caution, due to an unfortunate rise in fraudulent activities. The CFTC has recently warned American investors and retirees against companies using bait-and-switch tactics and charging exorbitant fees for their metals, with some going as high as 120%+ above spot price.

Here are 4 popular scams you need to watch out for:

Hidden Fees: Some companies may initially lure investors in with low fees that seem too good to be true, and then surprise them with unexpected costs that were not clearly disclosed upfront.

Overpricing: It’s understandable that every business needs to charge a spread on their products to turn a profit, but when we’re talking gold coins, these spreads can range from a few percentage points to 120%+ above spot price. Always ask for a clear pricing structure from the company you plan to buy from, and do your math.

False Grading: Some dealers may exaggerate the quality or rarity of their gold and silver coins, misleading buyers about their true worth. While it’s true that some coins may be worth more than their metal content in the future due to their rarity, it’s NEVER a guarantee and no one knows which coin will be in short supply in the future. Stick to bullion if you want to play it safe.

Fear Mongering: if the company keeps bringing up doomsday scenarios and wants you to convert all of your savings into gold and silver, it’s a major red flag. An ethical company should explain the pros and cons of investing in gold, and let you decide on your own whether you want to move forward and what percentage of your portfolio you want to allocate to metals.

Nonexistent Gold: The most malicious scams involve selling gold that simply doesn't exist, leaving the investor with a significant loss. This is probably the worst of all scams, as your investment will simply vanish. Make sure you due your due diligence and look at the ratings/reviews of the company you are about to wire your funds to.

To arm you with the necessary knowledge and protect your investment, we recommend that you request your free gold IRA guide from Noble Gold Investments. This guide highlights potential pitfalls, provides valuable investment insights, and explains how a gold IRA can be a potent tool for safeguarding your retirement.

Disclaimer: we would like to remind you that this content isn't financial advice and cannot be taken as such. All investments carry a certain level of risk. Please speak to your financial advisor before making any investment decision. Lastly, please note that past performance isn't indicative of future returns. Invest wisely.