For much of human civilization, gold has captured the imagination of investors. That enchantment continues to this day as the price of gold rises making this commodity seem like a good alternative to more unstable markets gold ira. Although there are many reputable dealers in gold, the attractiveness of the market and investment potential makes it vulnerable to fraudulent business practices.
If you have considered buying or selling precious metal products or bars, the Office of the Attorney General has this message for you: investigate, investigate, and investigate. Before you engage in a transaction, you should research the currency dealer’s background online, including how long they’ve been in business, their Better Business Bureau (BBB) rating, and how many complaints they have with the BBB. In addition, you must independently verify the trader’s membership and status in major industry organizations. This information applies to all transactions whether over the phone, in person, online or by mail.
Major organizations you can contact include these two numismatic groups: the American Numismatic Association and the Professional Numismatists Guild. You can also try to verify if the merchant is authorized by one of these groups PCGS (Professional Coin Grading Service) or NGC (Numismatic Guaranty Corporation), which are the two most recommended grading services.
It is likely that you will buy coins or bars at retail price and then sell at wholesale price. Selling after a short period of time often results in losses.
Here are some points to avoid being a victim of fraud:
- Seniors make up 14% of the US population, but account for 60% of those who call the National Fraud Information Center. If you are of legal age, you must be extremely careful.
- If the coins you have bought as an investment must double or triple in value before you realize a profit, you may have been the victim of a scam.
- If a merchant does not pay you, return your coins, or deliver the product you purchased within 30 days or sooner, you may have been scammed. Don’t Procrastinate Take Action!
- Do not answer calls from people with whom you have not previously communicated. Callers with telemarketing offers are often not registered in Texas to legally engage in telemarketing and are also often trying to pressure their customers to act quickly.
- Use credit cards for the first few transactions, as credit card company’s offer extended fraud protection.
- Do not deal with a merchant who guarantees that your purchases are completely safe, that they will go up in value or that they cannot lose value, that emphasizes the gold embargo by the government or that claims to buy them at the same price that you have paid.
- Counterfeit coins and bars, as well as fake grading services are a risk, especially with internet transactions.
- Beware of plans known as Home Storage IRAs, these have not been fully vetted by the US Treasury or the IRS. Conduct your purchases with reputable, independent curators.
- You reduce the risk of theft by storing your coins in a safe deposit box at a financial institution. Such an institute can also be a safe place to meet with buyers/appraisers. Do not allow a dealer/appraiser to remove coins from your sight.
- Make sure dealers with whom you make qualifying precious metal purchases are registered with the State of Texas and, if required, with your city.