Precious metal investors need to watch out for Internet Gold & Silver Scams. There is evidence of alleged scams on several of the well known online bullion dealers. Not only is there the threat of counterfeit bullion in the market, but there seems to be an ongoing problem with fraud, bait & switch tactics, delivery delays and missing product.
One of the major problems with the precious metal bullion industry is the practice of many of the Online Dealers using aggressive sales techniques to get customers to purchase high-premium rare coins instead of regular bullion.
I personally know of several individuals who lost a lot of money when they purchased these rare gold coins. This happened a few years ago, and if I knew they were purchasing gold and silver, I would have provided them better recommendations.
James Anderson at GoldSilver.com put together an article detailing the evidence of what is taking place in two of the online bullion dealers who have allegedly committed these negative and fraudulent business practices.
When you first set off to buy silver and gold products, there are many factors which will likely influence your decision making.
A product’s price is most certainly one of the most important decision making factors. Gold and silver dealers know this, and therefore most dealers build their business models and advertising campaigns around low price offers.
Dealers understand that most people are trained to think that in a shopping comparison, lowest price wins.
This presumption should especially hold true when investors are comparing fungible or like-kind silver and gold bullion products from one dealer to the next.
Who doesn’t want to save some fiat currency on a trade if they can?
Apparently there are hundreds of active silver and gold buyers who might prefer to actually receive the products they supposedly bought rather than simply saving a few bucks on their original purchase price.
The article states, “Consumers across the country have reported late or missing shipments of rare, silver and gold coins purchased from the Orange County precious-metals dealer. Clients say they have lost tens of thousands of dollars in investments, prompting some to take the business to court.”
About.ag, a silver and gold internet blogger, has painstakingly documented this delayed delivery fiasco since its inception (click here for more details).
According to The Better Business Bureau, there are more than 200 complaints regarding the dealer over the last 3 years.