For some time now, gold has maintained wild popularity among investors around the world. Due to circumstances in the economic climate, more and more people continue to invest in gold. Unfortunately, we’ve also heard of a number of scammers taking advantage of the popularity of gold buying. Sometimes, it’s as small as some fake jewelry floating around. Other times, it’s as large as a phony investment firm.
Luckily, there are some general tips you can remember when dealing with someone trying to get your backing in a gold investment:
Don’t do business with cold callers: Most scam investments come from a cold call. When dealing with such significant investments, you should be meeting people in person and inspecting their place of business. If you don’t know the location of the person you are dealing with, you won’t know the location of the money you invest.
Don’t be intimidated: Gold investment scammers don’t make any money by allowing you to think things over, research the market, or wait for industry news. They will try to push you into giving them money as fast as possible with phrases like, “you can’t afford to wait,” or “time is of the essence.” They will also make promises of investments with little or no risk, which aren’t realistic. When in doubt, don’t invest.
Do your research: No matter who you invest with, you should know everything about the company. Check with the FTC, National Futures Association, or the Better Business Bureau.
Investing in a mine: You are mostly likely wasting your time. Do not send money off to some foreign country. Chances are you will never see it again. Even if they show you gold a few times, that is a trick to lure you in!
Whether dealing with gold ETFs or selling your own gold, just remember to be careful and be aware.