In recent years, many investors have complained of gold and precious metals investment scams, and many of those complaints have centered on gold coin investments. While not every gold investment product is a scam, it is important to be vigilant in doing background research and be on the lookout for the common warning signs of fraud.
If you are thinking about investing in gold coins, here are a few tips for avoiding gold coin investment fraud:
- If you are investing in gold coins, understand that they must be stored—and some con artists will offer to “store” them for you (while pocketing your cash for non-existent coins) or charge outrageous “storage fees.”
- If you’re promised low risks and high returns on gold coins, realize that some “proof” of past performance can be misleading, and it’s critical to be skeptical of offers that are too good to be true.
- If you feel pressured or harassed to buy, proceed with caution, sleep on it, and do extensive background research before deciding to invest. Remember that no legitimate professional should ever use high-pressure tactics to talk you into an investment.
- Not all gold coins are equal in value, and some con artists may even try to sell you fake or non-existent coins. It’s important to be prepared to check it out with a third-party appraiser of your choosing—and to be suspicious if a seller refuses an independent appraisal.
- In a similar vein, you should be wary of any gold coins that come mounted in display packages or on plaques. These kinds of mountings may prevent you from properly inspecting or appraising the coin, and they may be used to hide issues with grading, gold content, etc.
Before you invest in gold coins, it’s important that you learn as much as you can about gold coin investing, do thorough research on the product and company, and treat unsolicited offers suspiciously. And, if you believe you may have already become a victim of gold coin investment fraud, don’t wait until it’s too late to get help and recover your investment losses.