5 Tips to avoid getting scammed while Investing in Bullion Online
Just like all that glitters is not gold, not every bullion dealer doing business online is trustworthy. If you are interested in investing in gold and silver to stabilize your investment portfolio, you have to steer clear of scam artists who are out there to siphon off your hard-earned money. Whether you are a novice or a seasoned investor, you have to take precautions against falling prey to the fraudsters operating in the bullion market. Consider the following 5 tips to avoid getting scammed while buying bullion online.
Understand how to invest in bullion
Bullion refers to a bulk quantity of precious metals like platinum, gold, silver, or palladium that are usually cast as bars. You can buy precious metals in different forms, such as jewelry, bullion bars, or coins. But be aware that only certain forms are regularly used for trading in the bullion market. For instance, it is quite easy to trade in gold and silver if they are in the form of bars and coins.
Deal with only reputable bullion dealers
It is never a good idea to opt for bullion dealers without researching about them first. A bullion dealer who offers you a low price may seem to be attractive. But it is advisable to investigate about the dealer’s reputation before investing your money. When researching for the best bullion dealers, check how long they have been in this business. Verify if they have a physical address or not. Try to find industry and customer reviews about the dealer. Make sure that they are selling you bullion and not numismatic coins.
Avoid surrendering to sales pressure
High-pressure sales strategies are quite common in the bullion market when you deal with fraudsters. But a good dealer of precious metals will not pressurize you to buy bullion at short notice. If your bullion dealer pressurizes you to make an investment or scares you with prophecies of an economic meltdown in the future, you need to reconsider your decision of dealing with such a person.
Pay attention to the price
Online bullion purchases involve a number of fees. You need to become aware of them to check if you are getting involved in a fair deal or not. Often fraudsters and shady dealers lure customers by quoting low rates. But they fail to deliver the precious metals at such rates. Note that the best bullion dealers and legitimate bullion companies will not hesitate to disclose any fees associated with your purchase. So, clarify all doubts related to fees before making an investment.
Insist on the buyback policy
A buyback policy is a sign of a reputable bullion dealer. Any scam artist who deals in fraudulent goods will not offer a buyback policy to the customers. This is because the scam artist won’t be willing to buy back the counterfeit gold or silver they are selling. You should also check if the buyback policy has any limitation on the quantity of gold or silver. Be sure to ask about the repayment period.
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