At ITM Trading we are constantly helping people avoid common gold scams that are out there in the market today. As with any business there are pitfalls to avoid, and with the gold market on an eleven year run, one can imagine that scams are plentiful. Fortunately there are some things that you can do to protect yourself.
First, make sure the company that you are dealing with has been established for a long time, 10 years or more. A lot of pop up operations have come to the market place within the last few years as gold as risen and demand has increased.
Check out reviews on the internet as well as check with the BBB. A good company will have some complaints as you cannot please every customer, but in general you will want to see plenty of good reviews and testimonials. Also check with industry firms for company accreditation’s, these include PCGS, NGS and ANA amongst others.
Watch out for companies that use high pressure tactics to get you to send in money right away. Make sure that a company wants you to know how their sales practices work and how much they charge. Hidden fees and charges can cause damage and many companies that charge very high fees will hide them.
Never buy gold from offshore companies. A lot of various scams have been coming from overseas. If you have not contacted the company in the past don’t do business with them.
Be leery of companies that guarantee profits. No one can predict what the market will do 100% of the time. Past performance can be a good indicator but should never be relied on as a guarantee.
Different types of gold do different things for a person’s portfolio, and in the gold market there are many options to choose from. Therefore establish your goals and objectives to insure that you are acquire the right gold for you. This is the best way to get the most out of your gold.
If you are selling your gold jewelry to a cash for gold type business, shop around. The amount each company will pay you will vary greatly; the average that a business will give you will typically range between 50-65%. Therefore it is important to do you due diligence in order to ensure you get the most money.
If you have any questions or concerns about gold or the scams that are commonplace today do not hesitate to give us a call. We have been in the business for over 16 years and take great pride in the level of integrity that we have as well as our A+ rating with the BBB.
We believe that everyone deserves a properly developed strategy for financial safety.
Chief Market Analyst, ITM Trading