The Austin-based gold dealer US Money Reserve, Inc., has agreed to pay out $5 million to customers who consider themselves victims of wrong-doing by the gold dealers’ sales practices. However, the dealers claim that they, in fact, have done nothing wrong, but are working in compliance with the Texas Deceptive Trade Practices Act. Just protocol in their minds…and just a quick bit of research on this dealer could have told you to be cautious and have your gold buying guard up.

The owner of the company, Milton Verret, is an esteemed philanthropist according to his personal website, however if you ask the Better Business Bureau of Texas about his money-making business, they’ll show you a big “F”. Even other states flashed warnings about his company’s sales practices.

His story shouldn’t sound too foreign if you’ve had a chance to read through the Gold Scam report (see top right corner of the page to download). US Money Reserve offered deals on gold bullion coins via television commercials, then once on the phone with the potential buyer, they would urge the customer to switch over to a much more expensive commemorative coin under the guise that it would gain more than the originally offered bullion. Customers were noticing that their earnings were not increasing at the rate they had expected, thus legal action ensued.

The Travis County District court came to a compliance agreement with US Money Reserve, stating that their marketing tactics were deceptive because:

“The value of commemorative and proof coins is based on subjective factors, such as age, rarity and condition.” — and they were gouging the prices astronomically!

So that’s right, $5 million in restitution is being returned to customers who act now. If you were bait and switched into deals from this dealer, call: 1-800-867-6101 to claim some of the funds that are being sent back to unhappy buyers.

-Megan

When you first venture out to purchase your gold or silver the choices will be plentiful and so will the advice. You’ll face the options like: squares or circles, shiny or dull, and government issued or good ol’ minted bullion. It can become overwhelming and even confusing deciding whether junk or .999 rounds are the best choice for you. However, one of the best things you can do before making that kind of decision is consulting with experts…and/or someone you trust.

When I first decided that I should be investing in precious metals, the motivation came from my readings on the Federal Reserve Bank and the inflation that was taking place in the US and abroad. I had always thought it was silly to keep money in a bank account when the interest I was accruing wasn’t working fast enough to combat the decline of the dollar’s purchasing power. Thus, I turned to what seemed like a trustworthy investment: precious metals (namely silver, because I didn’t have $500K to throw around). It was then I realized, I need to start educating myself. I hope this was a thought that crossed your mind as well.

Some sound money evangelists were on my radar from my research of the Federal Reserve: Ron Paul, Peter Schiff, Murray Rothbard, and Tom Woods to name a few. Their knowledge quickly lead me through a network of VERY intelligent and well-spoken individuals on the subject. So fear not! The resources are endless. You have no excuse to go into a precious metals purchase blindly.

However, no matter how informed you are, this may not prevent to-good-to-be-true offers that make you salivate at their site. As explained in Peter Schiff’s latest report (that you can download in the top right hand corner of the page) the bait and switch sales model is still alive and well even after numerous attempts to legislate the fraudulent tactic.

In my personal experience bullion and junk have been the safest purchases I have made in physical metal. I’m in no place to share my investment advice with you, but after listening to the experts and reading extensively on gold and silver bullion it lead me on a hunt to find the right dealer. The bait and switch tactic is something you’ll come across as you are shopping for dealers. As stated in Schiff’s Gold Scam Report, “most dealers’ goal is to get you on the phone.” So if you see a deal for a gold coin for $29.95, chances are it IS too good to be true. Many bullion dealers will bait you with the low price in hopes to switch you onto a higher priced item of lower value. Many times this item is a numismatic coin (rare coin) and/or a commemorative coin issued by the US Government.

If you’re looking to INVEST your money, numismatics can be disastrous to your ROI. The scam-dealers may attempt to feed you information about government confiscation, high returns, and other fallacies you’ll find while reading through the Gold Scam Report, however when it comes down to it: bullion outperforms numismatics every time.

So heed this information. This is one of the many lessons you will learn by following us here at Gold Scams. Don’t be too proud to read up on the latest tactics used by scammers, while also learning about the culture and ways to invest! Subscribe today!

Many of you visiting our new Gold Scams Blog have had an interest in the precious metals world and/or know someone who has. We welcome you to a new place to educate yourself on the latest in investment culture and the ugly things that lurk in this, now dense, market place.

Peter Schiff’s latest report on Gold Scams covers many of the problems gold and silver buyers face today when searching for the right dealer: where to feel comfortable and where to feel like they are getting a great deal. Schiff’s report covers many of the tactics used in the precious metals business today that will make you want to sit down and get educated before your next buy. You can read the report today by signing up and downloading your own free copy!

Since the financial crisis began in 2007 (although I know a lot of us could agree it has been going on much longer), the value of precious metals, namely gold and silver, have outperformed most investments. As most successful trends go, people have caught onto the metals’ stellar performance and want to get a piece of the pie themselves. There are many ways to fill your portfolio with gold and silver. Investors pour money into ETFs, mining and exploration companies, mutual funds, and even jewelry, but one of the most popular, and what some may claim safest, ways to invest is with physical bullion. Cold, hard metal right in your hands.

Well if you are one of those physical gold or silver investors, you’ve stumbled upon a blog that’s just for you. In these times of mainstream gold and silver hype, there is room for some sketchy deals to take place, like with any hot commodity. We’re here at Gold Scams to talk about what to look out for and how to become an educated gold and silver bullion buyer. Every week, we’ll cover the latest in pricing, scams, and new buyer education – and include some words from the experts (Peter Schiff, David Morgan, and other influential persons in the gold and silver community).

With nothing but optimism pouring from the metals market, there’s no stopping some of the successful gains that lie ahead. Subscribe to Gold Scams today and learn how to make bullion buying a successful experience for yourself, friends, and loved ones.