With gold prices at record highs, you may be thinking about selling some of your old jewelry or bullion coins to make some cash. But be careful to avoid getting duped by a shady dealer. The good news is you can find legitimate dealers with excellent reputations and track records that are easy to work with. The key is to research and compare the top gold dealers before making a sale.
A gold dealer is an individual or business that buys and sells precious metals like gold, silver, platinum and palladium. The dealers can either buy and sell their own metals or they can act as a middleman to facilitate purchases between other companies and individuals. The dealers typically offer a variety of products and services to consumers including buying, selling and storage. They also often provide IRA custodian services to help investors invest in the metals on a tax-advantaged basis.
Many coin and precious metal dealers operate as private businesses but some are regulated by local, state or federal authorities. The dealers often provide investment advice to their customers and are subject to the same consumer protection laws as other financial industries that advise consumers on investments. Despite this, a large number of people are still taken advantage of by unscrupulous dealers who manipulate the price of gold and other metals to make big profits.
Gold dealers have been taking advantage of the public’s fear and angst over the global economy and the financial system. These fears have been fed by the meltdown of Credit Suisse AG and the failures of two regional banks in the U.S.
As a result, many Americans are looking to protect their wealth by purchasing physical gold. This is creating an opportunity for scam artists to take advantage of the situation by targeting people who are interested in investing in the precious metals market. Some of the more common scams that can be perpetrated by gold dealers include:
Inflated Bullion Prices: Overcharging for metals by misrepresenting market value, especially numismatic coins. High-Pressure Sales Tactics: Attempting to scare the customer into making a quick decision by using aggressive methods of persuasion. This is particularly common when the dealer has a lot of inventory on hand that needs to be moved quickly in order to avoid losing money on unsellable pieces.
Unlicensed Buyers: Unless you have the government’s blessing, you can be fined or even jailed for buying and selling gold without a license. This is especially true if you display ads in your store window or hand out business cards to potential customers.
Reportable Bullion: A dealer who buys and sells bullion must report any transaction that exceeds 50 ounces to the IRS. This includes all bullion bars made by COMEX, but excludes American Eagle and Chinese Panda coins. Some dealers shave off the edges of their bullion to reduce the total weight and make it non-reportable.
When choosing a gold dealer it is important to find one with an excellent reputation and excellent customer service. Freedom Gold USA is one of the best-rated Richmond gold dealer and a top choice for buyers of bullion and coins. The dealer also partners with Equity Trust Company to facilitate IRA transfers and rollovers, so investors can enjoy the benefits of owning physical gold bullion in a tax-advantaged account.