Gold has always been a precious commodity, sought after by most people. With gold prices on the rise, unfortunately, scams that involve gold also increase in frequency. Fortunately, there are ways to spot a scam and it’s important to report suspicious people who may be attempting to scam people so that the authorities are aware of their behavior and patterns.
When purchasing precious metal coins, it’s imperative that you seek out reputable sources in order to avoid paying high costs for inauthentic pieces. There have been many cases in the US of people buying outright fake coins that have been manufactured and shipped in from China. These forged coins are made of iron, copper, and zinc and coated with a thin layer of silver to imitate authenticity. The worst part about it is the person purchasing these coins may not know that they are fake right away because the coins are placed in clear protective cases, which most collectors know should not be opened.
One popular scam involves the scammer claiming that once you place your order for gold, that price will be fixed regardless of the market changes. If the spot price does change, they will add more coins to make up the price difference. Adding coins for free is very appealing for people that get involved in these companies, but it is not as it seems. The coins are typically common and not as well sought after as they would have you believe.
Beware of anyone claiming that they are mine owners in Africa. This scam involves the scammer contacting you with a business proposition to sell large quantities of gold from their mine at deeply discounted prices. Oftentimes, these scammers will claim to be enrolled with the Precious Mineral Mining Company (PMMC), but are definitely not.
Any time a company claims that they need payment and will ship a partial delivery of your gold purchase, it is not a reputable business. Be wary of this kind of proposition and if your gut says not to do it, then don’t do it.
In any case, if the cost is lower than you think it should be: be cautious. When it sounds too good to be true: it probably is. Always be on the lookout for scams, unfortunately, there are many people who will rob you blind if given the opportunity and it’s smart to safeguard your wallet and resources from scammers.