Every day, more investors see the need to diversify their investments with precious metals. Hence, gold buying is seeing more and more patronage.
But each year, thousands of gold buying investors get scammed by dishonest dealerships. Thereby, losing millions in the process.
Some of these scams have originated and are reported to have taken place in Ghana. It’s no surprise, as Ghana is a country with an abundance of gold.
So do you want to avoid being swindled or scammed again? Here are some vital things you must know about gold buying.
5 Ways To Avoid Being Scammed in Gold Buying
1. Consider Only Respected Dealerships
The first step in gold buying is using a dealership that is not only respected but reputable. Reputable dealerships usually have a good track record. They also have a pool of satisfied clients who testify to their good services.
Of course, it is possible to get scammed by fraudsters posing as such reputable dealers. However, you can join online gold buying forums. Here, you meet like-minds who discuss gold investment and gold scams. This will help you avoid such pitfalls.
2. Understand What You’re Buying
Most people buying gold for the first time make the mistake of not understanding the market before jumping in. The first thing you need to understand about gold buying is the price of gold.
Knowing the current spot price will save you from scammers looking to sell at way cheaper prices. The next thing to know is the measurement and its weight.
Likewise, design is the next important aspect of gold buying you should know about. Gold coins have unique designs that make it difficult to duplicate illegally. So you need to familiarize yourself with them.
3. Avoid Overpayment and Dubious Offers At Give-away Prices
One way scammers reel in victims is by offering gold at prices that sound too good to be true. Most time, these scammers offer you golds that are 20% or 50% cheaper than the price in the market.
Also, they sell bullion products at prices that sound too good to be true and way below the current spot price. Some victims have reported being contacted by royalty from Ghana offering them a large amount of gold at giveaway prices.
Always be suspicious and cautious of offers like this. This is inclusive of dealerships that do not charge premiums. Online gold buying carries several fees like markup. The difference is that legitimate companies like HKKO GOLD disclose this on their websites.
4. Resist Sales Pressure and Panic Buys
Gold scammers like to use sale pressure to force victims into gold buying in a panic. To get naive investors to give up their money, scammers employ high-pressure tactics, preying upon their greed and fear.
Avoid investing with dealerships that offer wonderful opportunities followed by little risk. More often than not, scammers will try to stop you from reconsidering their shady offers. They will want you to buy it immediately.
Always resist such high-pressure tactics. Take your time to understand the product and investment opportunity being presented.
5. Be Cautious About Dealerships Without Buyback Policies
Scammers and fraudulent dealerships are unlikely to offer buyback policies to their buyers. Also, they may offer limited quantities. Buyback policies are a way companies show their good faith to their customers.
A way to avoid falling for such pitfalls is making sure the buyback policy isn’t limited to a certain quantity of gold. Also, seek gold dealerships with reasonable inspection and repayment periods.
Selling fake or non-existent golds are some of the ways scammers operate. Nowadays, there are as many fraudulent dealerships as there are genuine ones in online gold buying.
However, companies like HKKO GOLD pride themselves on offering some of the most transparent processes in gold buying. Plus, they offer you gold at the most competitive spot prices. So if you’re looking to buy gold online, HKKO GOLD is a place to start.