The price of gold has risen steadily in the past few months. In times of financial turmoil, precious metals such as gold make appealing options to investors who seek a reliable return. However, just as the price of gold has climbed, so has the rate of scams involving it.
Whether you are considering purchasing gold or you already own a significant amount, you must remain vigilant to financial scams. Here, we will examine some of the most common gold-related scams currently making the rounds.
Scams to watch out for this year
Every industry has its share of frauds, and gold is no different. These are some scams currently circulating in the gold industry, plus how you can avoid them:
- Misleading claims: Overstating the value of gold, making hyperbolic claims about investment returns and overstating scarcity has become common. Fraudsters do this to inflate value and line their own pockets. To avoid falling for a misleading claim, do plenty of research before you decide to invest.
- “Empty vault” schemes: In a so-called empty vault scheme, a fraudulent dealer that does not have access to a secure vault tricks an investor into paying for storage anyways. Before paying for storage services, determine for certain whether the dealer has access to a secure storage facility.
- Phishing: Garden-variety phishing scams are always prevalent. With the gold market on the rise, phishers are increasingly targeting potential investors in gold and other rare metals. To prevent phishing, do not click the links in suspicious-looking emails and beware of giving out your personal information online.
Scams may be on the rise, but this should not necessarily discourage you from purchasing gold. Research every transaction carefully so that you make wise purchases from reputable sources. And if you suspect a scam, report it to the authorities immediately.