How important is choosing a reliable gold trading company when looking to do some Gold Trading? A news report published on November 17, 2011 highlights the importance. The report quotes State officials as saying that US Money Reserve Inc. has agreed to pay customers as much as $5 million as compensation for its sales practices. The commemorative coin marketer, based in Austin, has not accepted any wrongdoing, but has agreed to reimburse the financial losses incurred by customers and to reform іtѕ sales practices. The case revolved around the way in which this company, which does business as US Rare Coin and Bullion Reserve, marketed commemorative gold coins.

In a similar incident, Goldline International, a precious metals retailer based in California and co-promoted by Glenn Beck, was charged with multiple criminal counts, including false advertising and grand theft by false pretences, earlier in November 2011. According to the charges, the company used aggressive telemarketing and pressurised customers into purchasing highly expensive coins. In fact, the mark-ups were so steep that customers almost never made their money back.
Such incidences highlight the importance of choosing a trustworthy gold trading company for all your investment needs.

5 Things to Look for in your Gold Trading Company

A gold trading company offers guidance through their years of experience in and knowledge of the market. This guidance can prove to be invaluable when it comes to investing in gold, the price of which has been volatile through most of 2011. However, one needs to exercise some precaution while selecting the company. Some of the areas you may want to consider in making a choice are:

1. Experience: It is recommended that you hire the services of a gold trading company that has at least two or more years experience in the area you are interested in. With gold prices offering huge opportunities for buyers and sellers, a number of gold trading companies have sprung up over the past couple of years. It is, however, advisable to look for a firm that has traded through both good and bad cycles.
2. Client friendly: Find out how willing your company is to educate you in regards to the various aspects of trading gold. You can find this out by looking at their website and the testimonials section. Alternatively, you could call up the company with a concern or question and test whether they are addressing your needs and their willingness to do that.
3. Keeping you up-to-date with the current market trends: You could identify companies that take special efforts to keep you informed about the latest developments in the gold market. Certain firms offer regular newsletters and e-letters, have a regularly updated website or blog or have company representatives who keep in touch with customers and relays information to keep them abreast of the news and happenings in the global gold market.
4. Redily provides information: Reputable companies will be forthright in disclosing the percentage being made on the coins being sold. Other good sourcees for infomation would be to contact the Better Business Bureau and get their rating as well as the Professional Coin Grading Service (PCGS), the Numismatic Guarantee Service (NGC) and the American Numismatic Association (ANA). While not all companies have an unblemished record, a company with a spotty record will be easy to recognize and should be avoided.
5. Good reputation: Collect information regarding the standing of the company in the market. You could check online to find out if there are any reports of fraud or malpractices against the company you are considering.

It is often recommended that you hire the services of a reliable gold trading company since such a firm would be able to give you good advice on when and how you should trade gold. It is important to select a company that understands your objectives and can recommend to you various options according to your financial position and investment goals when considering gold trading.