Here at ITM Trading we pride ourselves on transparency with every transaction our clients make. Unfortunately there are other companies out there who do not take the same pride in their work. Therefore there are some common gold scams to avoid in the marketplace.
Criminals and scammers will always enter a hot market in order to make a quick buck and gold just happens to be on an eleven year hot streak. As a result many fly-by-night operations have sprung up around the country. Some of these companies get you to wire money to them and never send the product. Others get you to send in your gold coins and never send you the money. These companies are in it for the quickest way to make money and will stop returning your phone calls after you have sent your money or coins. For this reason you should do your homework on the company you are dealing with. A good company will be upfront with you about the premiums they are charging. Use a company that has been in business for a long time and has good reviews. All companies will have some complaints as you cannot please everyone. Check the BBB as well as PCGS, NGC and ANA before buying.
Some companies will advertise coins as rare coins that actually are very common. Whether that be graded bullion coins in order to increase premiums (do not buy graded bullion) or selling coins that are close to bullion value for 50-100% markups. Check prices at various companies to make sure that you are getting a decent price. You get what you pay for, thus some companies will give little or no advice for the best prices while others will charge more for one-on-one service, so make sure to take that into account.
Because we are in the gold business we get a lot of phone calls about selling gold jewelry or junk gold, also known as “cash for gold.” Be careful here as a lot of these companies have popped up in the last few years. All companies need to make a profit. With that being said the amount of money a cash for gold place is willing to pay you will vary greatly from business to business. Some will pay as low as 40% of the spot price; the average is between 50-75%. So if you are going to sell some of your old gold jewelry, again shop around.
There are many different products that one can acquire in the gold market: from bullion coins and bars on up to highly collectible rare gold coins. It is important to establish your goals and objectives before buying and make sure to get the right gold for you. One type of gold isn’t better than another, but one type of gold may be better for you. For questions or concerns on these topics please call us.