Scams are unfortunately all too common in the gold buying industry. With so much money at stake, it’s no wonder that scammers are always looking for new ways to con people out of their hard-earned cash.
Here are some of the most common scams in cities like Salt Lake City involving gold buyers:
This is one of the oldest scams in the book and involves promising potential gold buyers huge profits if they invest in a new gold mining venture. Often, the scammer will even offer to let the buyer in on the ground floor, for an even bigger cut of the profits.
Of course, there is no such thing as a sure thing when it comes to gold mining, and more often than not, these types of scams end up costing the buyer a lot of money with nothing to show for it.
If you’re approached about investing in a gold mining venture, do your homework first. Check out the company and make sure they are legitimate before investing any money.
2. The Fake Gold Coin Scam
This scam usually targets new gold investors who may not be familiar with all the different types of gold coins that are available.
The scammer will try to sell the victim a fake gold coin, often at an inflated price. The coin may look real, but it is usually made of cheaper metals and is not actually worth anything.
To avoid this scam, educate yourself on the different types of gold coins before buying any. If you are unsure about a particular coin, get it appraised by a professional before handing over any money.
In this scam, the scammer will try to sell the victim gold bullion that is fake or overpriced. Often, the bullion will be advertised at a price that is below the current market value, making it seem like a great deal.
However, when the victim goes to pick up the bullion, they find out that it is fake or worth much less than they were told.
To avoid this scam, only buy gold bullion from reputable dealers. Do your research to make sure you are getting a fair price, and always get a second opinion before making any final decisions.
4. The Gold Jewelry Scam
This scam usually involves the scammer selling fake gold jewelry or gold that is not as pure as advertised. Often, the scammer will advertise the jewelry at a very low price, making it seem like a great deal.
When the victim goes to pick up the jewelry, they find out that it is not made of real gold or is not as pure as they were led to believe.
To avoid this scam, only buy gold jewelry from reputable jewelers. Make sure you know what you are buying and that it is made of real gold before handing over any money.
5. The Cash for Gold Scam
In this scam, the scammer will offer to buy the victim’s gold at a very high price. They may even come to the victim’s house to pick up the gold.
However, once they have the gold, they will disappear and the victim will never hear from them again. In some cases, the scammer may even send the victim a fake check for the amount of gold they were supposed to receive.
To avoid this scam, only sell gold to reputable dealers. Get multiple offers before selling your gold, and make sure you get paid in cash or a certified check before giving up any of your precious metals.
If you are ever unsure about a particular gold buyer or seller, trust your gut and walk away. It’s not worth taking the risk, no matter how good the offer may seem.