Professional support: How To Avoid Popular Gold Scams In 2023?
In recent years, gold has been a popular investment. Many investors around the globe were drawn to “safe haven assets” such as precious metals due to the geopolitical issues and market instability. Gold, like any other investment, is vulnerable to scams and frauds. Here are main gold scams to be on the lookout for:
Scam #1 Fake Gold: In this fraud, a trader may attempt to sell gold that is counterfeit or of lower purity than stated. This is why it is critical to buy gold from a reliable dealer.
Scam #2 Cash for Gold: These scams frequently include companies that offer quick cash in exchange for shipping in your gold jewellery. They frequently pay significantly less than the gold’s worth. Keep track of the purity of your gold and the current spot price. To establish the market value of your gold, use a calculator like this one.
Scam #3 Overpriced Gold: Some gold companies might attempt to sell gold at prices considerably in excess of its existing market value. During the COVID-19 pandemic, many investors and retirees took advantage of government support to purchase overpriced gold.
Scam #4 Leveraged Accounts: Some dealers may persuade investors to purchase gold with borrowed funds, claiming that it will boost their return on investment. This technique, however, is hazardous because if the price of gold declines, you may lose more than your initial investment. Furthermore, you must recuperate any premiums and fees paid above the spot price with this technique.
Scam #5 Rare Coin Scams: Some merchants may attempt to sell you collectible or rare coins, saying they are more valuable because of their scarcity or historical significance. However, the value of these coins is subjective and is not always linked to the price of gold. As a result, this makes them a risky investment, particularly for new investors. Beginner investors should most likely concentrate on high-purity gold bullion that trades at lower premiums.
Scam #6 Doomsday Salesmen and Fearmongers: Some salespeople will try to persuade you to convert all of your savings to gold, stating that the market and financial systems are about to implode and that you will lose your entire life savings if you do not invest in gold right away. This is a clear red flag and you should avoid it. While allocating a percentage of your portfolio to gold is a good idea, you should never put all of your eggs in one basket.
Conclusion
Unfortunately, frauds and fraudulent practises have targeted popular investing options for individuals seeking to protect and grow their savings. In a world where financial frauds abound, it’s critical to understand the risks involved with gold investments and take necessary precautions to safeguard your hard-earned money.
Liemeta ME Ltd. provides individuals with segregated and allocated custody storage of gold, silver and other precious metals.
Gold and silver etc. stored with us is allocated to our clients’ name and stored in custody for our clients. Our clients’ precious metals do not form a part of our own assets and are not assets of anybody else. All precious metals within our storage facilities in Liechtenstein, are fully insured and have an Evidence of Insurance certificate (EOI).
You are welcome to contact us for any additional information.
