Now I usually do my dealing face to face with a local bullion shop, but just as Christmas shopping isn’t always done in a store anymore, neither are all precious metal purchases. Many friends and associates have mentioned the gold and silver buying options on eBay, Craigslist, and Amazon. Turns out it serves the same purpose as shopping for clothes online: it’s convenient. You don’t have to leave your chair. However, when factoring in the shipping, you are most almost always going to get a better deal buying direct from a dealer.

Another thing to note when shopping online for your bullion, aside from the convenience charge, is the fine print. The kind bullion buyer from www.targetrichenvironment.com shared a worthy scam you all should be aware of. On eBay beware of a silver bullion item with a vague description and a good price. That seller is hoping you skip the fine print and miss the fact that it is not the .999 you are looking for.

There are listings of supposed .999 silver accompanied by the words “100 Mills”. This isn’t pure silver. It is a copper bar or round plated in silver. The seller may tag the item as “1 Troy Oz. 100 Mills .999 Silver”.

I’m not dissing copper, but you don’t want to pay silver prices for it! An easy way to avoid from this not-so-sly trick is take note of bidding prices. If most people are underbidding or if there are unfavorable reviews on the seller, READ THE FINE PRINT. Actually, you should be reading the fine print anyway.

As the author provides this eBay advice, he also points out that while acquiring this “100 Mills” metal wouldn’t be the worst thing in the world, passing it off as the pure silver you think it is could get you into quite the batch of legal trouble.

So be careful this holiday season as you continue your shopping online. As a matter of fact, buying silver for that special someone is a great gift idea. Just play it smart and get educated now on buying precious metals the right way!

Happy buying,

Megan

If it sounds too good to be true, it probably is. Although we refer to the conventional pathways to purchasing gold, I’m sure over time as you begin immersing yourself in the precious metal’s community you will find yourself looking for deals in all places. Your ears will begin to perk up when you hear of any bargain that comes in right at, or under, spot price.

This scam is to remind you that whether or not it is a licensed business or an individual on the street, having your gold or silver’s legitimacy confirmed is a must before following through with a purchase. One way of knowing is dealing with a well known dealer with a great reputation. Learn a lesson from this woman.

Last week, in Bakersfield, CA, a scammer approached a woman in a Big Lots expressing her desperation to sell the gold bars she had in her possession to pay for an emergency surgery for her father. Her scamming-sidekick soon arrived saying he had found a store to purchase the bar for $12,000 but had to wait until 5 p.m. to go back and sell the next bar due to the low amount of cash the store held on hand.

The woman they approached was convinced to purchase one of the bars of gold for $1,000 – with the scam artists telling her that she can return to Kmart later to flip that bar for $12,000. However, after they made the exchange, the scammers never returned. Soon after the woman found out that the gold bar wasn’t even gold. She was out $1,000 with a bar of metal that didn’t add up.

I’d like to think that most precious metals investors would know better than to buy a gold bar off of a stranger in a home goods store (100 oz. of gold = approx. $173,000 today), but you never know. Some ways to stop a scam before it happens is get to know your dealer by researching their company online or searching for reviews from their past customers. Also, if you are making a purchase in a barter like fashion, trade contact information and contracts to ensure that if the purchase is bogus, you have a way out. Finally, be alert and educated on the metal you so hope to own. Share these kind of stories with family members along with the Peter Schiff’s Gold Scam Report to be well-prepared for your first…or 50th purchase. (Download the report for free in the top right hand corner.)

Note: The two suspects of this gold bar scam have not been arrested, and the police are asking for the community’s help. If you are in the area and have a tip on these scammers you can call Detective Galland at 661-326-3858.

It’s not just the bait and switch scams you have to watch out for; scams can be even scummier than you can imagine. This particular scam cost individuals tens of thousands as Global Bullion Exchange owner Jamie Campany mislead his over 1400 clients to invest in gold “accounts” that would never actually hold the bullion.

Jamie’s company was functioning out of a boiler room in Florida that was converted into a call center. His sales team would find leads, connect the phone number to addresses on Google Earth to see what kind of property the potential buyer owned. The salesperson would then carefully select a potentially profitable lead by finding the largest houses. When the home owner answered, the salesperson would proceed to use every tactic in the book to eventually scam the person into buying gold that the company didn’t own and never would convincing the customer that an account would hold the purchase until the client decided to cash in. They even talked people who had no free-flowing cash into investing! Listen to his confession here:

The most fascinating part of the story is his ability to manipulate the 30-50 year old age bracket, a demographic you would assume could easily sniff out the deceit in the air. Campany did, however, highlight that his most difficult leads were the “little old ladies” who remained skeptical of someone they didn’t know asking them for thousands of dollars over the phone.

Unlike some of the scams you’ve heard about here and in Peter’s report, this scammer is coming clean, pleading guilty, and facing up to 25 years in prison. Be weary of direct phone calls by bullion salespeople and be sure to look up the in’s and out’s of their business if you do consider a offer. Perhaps the moral of this story should be: behave like a “little old lady” and do research into any company who contacts you before buying.

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.