Bullion is widely known as a safe investment. Unfortunately, the process of purchasing bullion can be risky if you don’t do your homework. We recently wrote about some con artists posing as needy individuals in order to sell fake gold. Some frauds are even more complex, going so far as to set up a fake business, forge assay documents, and more. Of course many dealers are on the up-and-up, but when it comes bullion, you can never be too careful. If you’re interested in purchasing bullion bars or coins, use these tips to ensure a safe transaction.
Always research the seller
Before committing to a bullion purchase, check in to the seller’s business history, references, and authorized dealer status. For bullion coins, buying directly from the mint is generally safe. If you’re interested in making a large purchase of bullion, check the LBMA’s “Good Delivery List,” which catalogs the names of accredited refiners whose bullion meets the strict requirements for trading on the London exchange.
Compare with originals
If you can, compare the bullion and/or certificates of authenticity with verified originals. Comparing the two (even just pictures of them) can reveal inconsistencies if the piece in question is counterfeit.
To truly guarantee authenticity, utilize a third party for professional assaying services. In most cases, an ultrasound assay is the best option. The test is non-destructive and is excellent at detecting plated gold and filled gold (both are counterfeiting techniques that can pass other assays).
At MGS, we practice what we preach. We’ve been family-owned and operated in New York’s Diamond District for more than 30 years and proudly maintain an A+ rating from the Better Business Bureau. Our 1 oz gold bars are sealed, certified, and labeled with a serial number and QR code for authentication purposes. We also have special scanning devices to authenticate bars and coins on the spot. If you’re interested in purchasing bullion, we’ll happily answer any questions you may have.