The current economic state has influenced more individuals to diversify their investment portfolios. Many have begun purchasing gold through various venues, including through online dealers. This, however, has also resulted in a rise of scams and fraudulent gold deals.
To protect yourself from making regrettable investments, here are a few do’s and don’ts to remember.
- DO get to know the gold dealer.
Make sure that you do your research before you buy any gold bullion from an online dealer. Check their years of experience and read customer reviews. The more years of experience a gold dealer has, then the more informed they will be.
To get to know the dealer more, you can contact them through their business e-mails or phone numbers. An honest and reliable dealer will be happy to answer your questions and assist you as you make this investment decision. For example, when you consult the experts at City Gold Bullion, they will be more than willing to provide the information you need to know more about your prospective gold investment.
If customer reviews are unavailable on the dealer’s website, you can make use of social media platforms to check whether you should trust this dealer or not. Most likely, if the dealer has dissatisfied customers or has scammed anyone, you will find these online. You should be able to gauge when reviews are legitimate or not.
- DON’T go on bargain hunting websites.
While we are fans of bargain hunting websites like eBay and Craigslist for random shopping impulses, do not use these sites for valuable investments. Dealers on these sites will mostly offer prices significantly lower than the spot gold prices, which will be very attractive to first time investors. However, an informed investor will question how these dealers are able to gain profits when they offer such assets at low prices. One of the most common answer is because this is a scam. You either get fake gold or none.
- DO look for buyback policies.
Aside from fully disclosing all fees related to your purchase, legitimate dealers will offer buyback policies. You can take this as a sign of good faith to their customers. Some dealers will charge a premium for you to sell back your gold, but there are other dealers who will not impose additional charges.
So, once you see what is on offer and are ready to buy, you need to have this buyback policy in writing for the protection of your gold investment.
- DON’T accept free storage or delayed deliveries.
A legitimate dealer will offer various insured methods of delivery. Even though you have no intention of storing the precious metals yourself, it is important to choose a dealer that provides deliveries as a standard. This business practice limits the possibility for fraudulent transactions.
Unfortunately, many people have been scammed by offers for free storage or delayed delivery options. Consider these as red flags or you may end up never seeing any of the gold you paid for. If you opt not to store your gold in a personal safe, always secure proper documentation from your chosen storage facilities.
- DO start with small quantities.
While bulk purchases will allow you to enjoy some discounts, you need to minimize the risks you make during an initial online transaction. So, don’t throw all your money in right away. If the deal turns out fraudulent, at least you were able to mitigate losses. Once the waters have been tested and you are satisfied, then you can slowly make more significant investments.
Take note of those do’s and don’ts and ensure you’ll be making valuable investments.
