According to experts, the best way to avoid a gold investment scam is to ensure you’re working with an established and reputable dealer. You can verify brokers’ licenses through FINRA (the Regulatory Authority) to make sure a potential broker is legitimately licensed. Additionally, pay close attention to online reviews and first-hand accounts others have had.
Online gold investment communities may also provide clues as to which brokers you should avoid. While a positive online review doesn’t guarantee that an investor is not a scam, negative reviews from others who have been scammed by a particular investor can help you confirm scams to avoid.
In the last few years, we have seen an increasing number of investment scam victims who have been taken in by slick gold and mineral scams. While there are plenty of legitimate gold, mineral, and precious metal investments out there, investors should be careful not to let flashy advertising or celebrity endorsements cloud the decision-making process.
While not every gold or precious metals investment is a scam, you should be skeptical if you spot these warning signs:
As with any investment, it is important to spend time doing your research before you choose to put money into a gold investment—no matter how large, recognizable, or reputable the gold seller seems. As an example, precious metals dealer Goldline International—which widely advertised its gold bullion and coins on television and radio as a completely “safe” alternative—was involved in an investigation and settlement for its allegedly false and misleading statements to customers and alleged bait-and-switch advertising tactics.
Attracted to the idea of investing in metals? Here are some things you should know:
"My elderly parents have become very interested in a gold investment they heard about on the radio, but I’m concerned it’s a scam. How can I talk to them about it?"
In the US, the elderly are a prime target for gold investment fraud, and it’s important to talk to your parents openly if you fear they may be falling for a scam. You know your parents better than we do, but we can suggest some approaches that have worked for others in the past.
Here are a few ideas to get started:
Are you already the victim of a gold investment scam? It may be possible to recover your investment losses. Reach out to an investment fraud lawyer with Meyer Wilson today to learn more about your rights and options. Just give us a call or fill out the confidential contact form today!