Gold IRA Scams: How to Avoid them in 2023

Where there’s money to be made, there’s money to be swindled. It’s one of the unfortunate side-effects of capitalism. Precious metals are, unsurprisingly, among the oldest and most common forms of scams. If you can paint a metal coin or bar into a glossy yellow color…

That being said, there are some things to understand about gold IRA scams versus something you might expect in a pawn shop. Though I’ll devote attention to both, it’s important to separate the two and understand that gold IRA scammers operate on a more refined spectrum than someone selling fake bullion coins. Usually.

In this article we will dive deep into the common and uncommon scams for you to be aware of, to arm you with the knowledge you need to help make sure you are not next on the “swindled list”. We will also finish up with our recommended and most trusted providers.

Understanding gold IRAs companies

 

Unlike your average pawn shop owner, corner store or someone who posted an alluring precious metals ad on eBay, gold IRA companies are large and generally deal with business on a greater scale. Furthermore, they rely heavily on reputation and long-term partnerships with their customers.

This not only means that they tend to be under tighter scrutiny, but also that it would be greatly detrimental to their business if deciding to scam their customers. The scams you are likely to encounter in this sector are such that many customers aren’t even aware they’re being conned. Many customers of these companies are actually satisfied with the deal they’ve gotten. The representative was nice, the service quick and pleasant.

If they did little to no research, they probably won’t even be aware of the foul play, and how much money they’ve (potentially) lost.

In this guide, to help remove the noise, I will group gold scams into two categories: common and uncommon. The first involves scams you might see in large and reputable companies to an extent. The second covers scams that somehow fall under the “too good to be true” umbrella. On with the most common offender on the list…

 

Gold IRA Scams to avoid: Pushy salespeople – Common scam

 

Undoubtedly the first on this list is one of the most common precious metals investment scams, so much so that companies will insist they’re not scamming people when doing this.

A truly reputable gold IRA company is in no rush to open your account and sell you the metals. Why would they be? The company will be around tomorrow, or next year, as will the IRAs they manage. Some, are even quite choosey with who they partner with and often have strict criteria of their own.

Now, there is some leeway here: every representative of every company is going to try and get you to make the leap, it is their job and that is how they get paid. That’s just their business model, and shouldn’t necessarily be viewed as bad.

Any time you hear things such as “limited time offer” or “if you open an account today”, your scammer sense should be tingling. If a time constraint is being imposed on the gold IRA you’re trying to open, there could be something wrong. Most likely, they’ve shoved some details into the contract or the deal that you aren’t aware of and want to make sure you’ve put your name on the dotted line before taking a closer look into things.

Ideally, you’d take a few days to research the company and the products you’re interested in even after you’re sure of wanting to open an account. Again, gold and other precious metals aren’t going anywhere. An economic collapse might be coming, but an extra week of research and due diligence isn’t going to make a difference for your savings. At the end of this article we will give our recommended and Best Gold IRA companies, where we have done all the reviewing and research for you.

Gold IRA Scams to avoid: Bait and switch – Common Scam

Another exceedingly common of the gold ira scams, among even reputable companies is promising one product and delivering another. Most gold IRA brokers facilitate regular bullion purchases as well, and if you’re making one of these, it will be much easier to see if what you ordered is what you’ve gotten.

If what you ordered is being shipped into a third-party depository, however, things get murkier. You’d have to, more than likely, go to the facility and inspect the bullion to be 100% sure that there metals are as-presented. And would you believe, the top names in the business like the ones we cover here, arrange for precisely these kinds of visits for traveling investors who want peace of mind. They have nothing to hide.

How bad this scam ends up being can vary greatly. As a general rule, dealers’ inventories are always emptier than they’d like. A very mild scam of this kind might involve you purchasing an American Eagle bullion coin from a certain year, only to receive one from another. Some precious metals investors actually won’t be too bothered by this: it’s not a huge difference. On the other hand, many will find it unacceptable. This is why many gold IRA companies list their coins as “random year” and bars as “our choice” when relating to the mint of issuance. They aren’t quite sure what will be available at that time.

On another extreme we have the less recommended companies shipping you what you didn’t order. Another coin, damaged coins, less than what is ordered… How they handle this also varies greatly. Some make an honest mistake and fully reimburse the customer promptly. Others will simply use the classic: “This is what the customer agreed to.”

Unfortunately, in many cases, this can end up being true and you might not be able to do anything about it. I almost grouped this with pushy salespeople, but decided it warrants its own section. While pushy salespeople tend to facilitate bait and switches, they can just as easily happen due to a lack of attention when confirming the deal you’ve made with the company. Always be sure you’ve checked even the tiniest detail before parting with your money.

 

Gold IRA Scams to avoid: Hidden fees – Common Scam

 

Gold IRA companies love their hidden fees, all the way to even some of the most reputable ones. Often, the main way a company of this kind turns a profit is through premiums on the bullion they sell. And here is where things can get messy.

It’s common, unfortunately, for bullion to have a 10% premium over spot. The smaller and more collectible the product, the greater the premium. It’s not uncommon for the premium to climb to up to 20% in the case of some gold coins and silver coins. But in general, this is considered too high for bullion products, especially above 1oz. Rare coins are even more susceptible to this, as rare coin valuation scams might also warrant a category of their own.

Price comparison is what you’ll want to do to avoid this. Check prices with as many dealers on the bullion you’re trying to purchase from the precious metals dealer of your choice. Again, you are in no rush, and neither should they be. If prices on individual coins, bars or rounds that you’re being offered are higher than 10% over spot, it’s probably best to look elsewhere.

Bait and switch ties into this, as the companies will sometimes claim one price and then try to raise it when the deal is being closed. Always be sure to know the exact price of each item you’re buying, and that it’s similar to or better than what competitors are offering. While there are other hidden fees to watch out for, this is really the one you should be looking out for.

 

Gold IRA Scams to avoid: Claiming collectibles are IRA-eligible – Common Scam

 

Another easy thing to miss, precious metals dealers might sell you coins with the promise of them being IRA-eligible. To know what is and isn’t IRA-eligible, you need a precise list. The IRS has laid out specific guidelines, but even these can be difficult to interpret. Is an Austrian Philharmonic proof gold coin IRA-eligible? What about a South African Krugerrand bullion coin? These can confuse even those with experience in the precious metals market, nevermind a those unfamiliar and dipping their toe in the space.

How this scam affects you depends on the company. Another thing to keep in mind is that placing bullion that isn’t IRA-eligible into a self-directed IRA will result in you incurring penalties. Who’ll pay for those? Most likely, the physical gold investors. While a truly reputable company will be able to tell you precisely what can and can’t go into an IRA, you should have a list by your side before making a purchase.

At the end of this article we will give our recommended and Best Gold IRA companies, where we have done all the heavy lifting, reviewing and research for you.

 

Gold IRA Scams to avoid: Home storage IRAs – Common Scam

 

This gold ira scam is most often seen among less-known gold IRA brokers, but can apply to larger ones, too. Here’s the thing: as you might expect, the IRS guidelines are again less than clear. It appears one can store gold in their home so long as they employ a licensed custodian. But this is all very murky.

Whether the company offering this means well or not, you should steer clear of these. If you want precious metals inside your house, simply purchase them outside of an IRA. Otherwise, you should always keep in mind that the overwhelming majority of precious metals in an IRA are stored in third-party facilities specifically designed to store bullion and other valuables.

 

Gold IRA Scams to avoid: Fake coins or bars – Uncommon Scam

 

Here is where we venture into the less common gold ira scam sphere. Gold IRA brokers that have any kind of good reputation will very rarely, if ever, offer fakes. For starters, it’s illegal and they can be charged with fraud. If it happens with a known company, it’s probably a result of oversight, though a fairly considerable one. It means they were sold counterfeit coins or bars by someone and neglected to inspect them for authenticity.

This scam takes a lot more prominence when purchasing bullion outside of an IRA, and especially with smaller or less-known companies. An easy way to spot it are unusually low prices, but some will actually ask the standard price for a fully counterfeit coin as to appear “legit”. When buying bullion from smaller companies and especially individuals, testing should be the norm. However, this can mean unpackaging the bullion item in question, which in turn can lower its resale value by upwards of 10%.

 

Gold IRA Scams to avoid: Damaged coins or bars – Uncommon Scam

 

Even though both of these scams are common in general, you may be pleased to know they aren’t that common among precious metals IRA brokers, especially the more reputable ones we recommend. They mostly deal in sealed or packaged bullion, which isn’t going to get damaged. Key word, of course, being almost.

This is perhaps the primary reason why everyone wants bullion in its original packaging, as it almost ensures that it hasn’t sustained any damage. It’s very easy for bullion of any kind to get damaged when handling, though not that much in the case of gold. Besides lessening the precious metals content, a damaged coin or bar will obviously have a much lower price than one in “mint” condition. Still valuable, but…

Some dealers will clearly state what damage the coin or bar has sustained and to what extent on their product listing. As mentioned, damaged bullion is far from worthless, and if a seller is being up-front about the condition, these listings shouldn’t be viewed as a scam.

 

Gold IRA Scams to avoid: Fake endorsements – Uncommon Scam

 

Precious metals IRAs companies are known for their endorsements. The more celebrity speakers mention the company, the better. From athletes to conservative speakers, you’ll see a lot of people advertising these companies.

An unreputable company, however, can claim that they’ve obtained a celebrity endorsement without the celebrity’s approval. This is something I’ve actually encountered even with some larger brokers. While not a common theme among bigger companies that we cover, you might want to double-check that the talk show host you listen to really endorses the gold IRA broker you’re thinking of doing business with them so you do not fall for this gold ira scam.

 

How to easily avoid gold IRA scams

I mentioned due diligence earlier, and that’s really all you need. Hopefully the information in our post has helped shed some light on what to look out for with a gold ira scam.

Here is a short but fairly complete list of how you can avoid falling to any of the scams mentioned above, and some not listed here:

·        Closely inspect the company’s profile on watchdog sites like the Better Business Bureau (BBB), Business Consumer Alliance (BCA) and so on, reading both positive and negative reviews

·        Closely inspect the company’s inventory and the details provided

·        Don’t hesitate to tell the representative you’d like to verify the information they’ve provided before closing the deal

·        Get a copy of the contract they’re trying to close with you and scrutinize it

·        If possible, try and get in touch with someone who already has an account with the company or has bought bullion from them to get first-hand feedback.

In truth, when talking to the cream-of-the-crop companies that we cover below, a lot of this isn’t necessary. But a little caution and “do your own research” always goes a long way to prevent being part of gold ira scam with you hard earnings.

Our Reviewed and recommended Best Gold IRA Companies

For retirement savings protection, diversifying one’s portfolio is essential; and Gold IRAs provide an opportunity to do so by investing in physical gold and other precious metals.

The best Gold IRA companies offer an avenue for investing in physical gold and other precious metals as part of a diversified retirement plan. These reputable firms provide services ranging from purchasing gold coins or bars on your behalf, storing them securely, and managing all necessary paperwork.

In this section, we will briefly explore what a Gold IRA is, its numerous benefits and how to keep away from the dreaded gold ira scams. We’ll delve into how you can select top-tier gold IRA providers that align with your investment goals.

Moreover, we’ll review some of the most reputable Gold IRA companies such as Augusta Precious Metals, Birch Gold Group, American Hartford Gold among others all with the aim to equip you with the essential knowledge about gold IRA providers so you can make informed decisions regarding your investments.

For more information and to see our deep dive into the best gold IRA companies, check our our full guide.

What is a Gold IRA?

A Gold IRA is like a regular IRA, but instead of investing in stocks and bonds, you invest in physical gold, silver, platinum, and palladium. It’s like having a treasure chest for your retirement savings.

Why Choose a Gold IRA?

Unlike paper assets, the value of precious metals doesn’t depreciate over time. Gold has been a well-respected store of value for centuries, retaining its worth through the ages. By diversifying your retirement portfolio with a Gold IRA, you can protect your wealth against inflation and economic downturns.

How to Invest in a Gold IRA

Investing in a Gold IRA is easy. You can open an account with one of our reputable custodians listed below, transfer funds from your existing retirement account, and start buying precious metals. Just make sure to do your research and choose a custodian with a solid reputation and low fees.

Benefits of Investing in a Gold IRA

Investing in a Gold IRA can be a smart move for savvy investors. Why? By investing in gold, savvy investors can potentially benefit from its long-term appreciation and protection against inflation, as well as tax advantages similar to traditional IRAs. In addition, gold may provide a safeguard against inflationary pressure, enabling you to maintain your buying power even when prices increase. And let’s not forget about the tax benefits – Gold IRAs offer similar tax advantages to traditional IRAs, allowing you to defer taxes on your investment until retirement.

Risks and expenses are certainly factors to take into account when investing in a Gold IRA as are the gold scams listed above. But for those willing to do their due diligence and make an informed decision, a Gold IRA can be a very valuable addition to any investment portfolio.

When looking to purchase physical gold and adding gold bars or collectible coins to your gold investments, gold ira investors should use top gold ira companies only to prevent the potential of being part of a gold ira scam or precious metals fraud, gold ira scams counterfeiting, phony iras or any of the other gold scam listed.

The following section will help you see the wood for the trees in what is a busy area of potential untrustworthy companies looking to take your hard earned money selling gold and precious metal iras in gold scams.

We, intentionally only a handful of our recommended providers and trustworthy gold ira firms for gold and silver products precious metal ira assets.

How to Choose the Best Gold IRA Company

Choosing a top-notch Gold IRA company requires careful consideration of several factors. First, examine their fee structure – transparency is key here. Next, gauge the quality of customer service by reading reviews and reaching out with queries. The reputation of the company should also be scrutinized; look for firms with high ratings on trusted platforms like Better Business Bureau and other accreditations confirming performance, customer satisfaction and trust. Lastly, consider storage options offered by each provider as this can greatly impact your investment’s security.

Augusta Precious Metals Review

If you’re on the hunt for a trustworthy Gold IRA company, look no further than Augusta Precious Metals. They’re known for their transparency, offering clear fee structures with no sneaky hidden costs. They have a great standing in the field and are praised by external evaluation sources such as the BBB. Their customer support is outstanding, with personalized aid to every investor. Augusta Precious Metals also offers secure storage options, ensuring your precious metals are safe and sound. This company is perfect for investors who value clarity, exceptional customer service, and secure investment options.

See our full review on Augusta Precious metals

Goldco Review

If you’re an investor looking for a trustworthy Gold IRA company, Goldco is definitely worth checking out. Known for their exceptional customer service and transparent fee structure, Goldco has earned high ratings from investors worldwide. Goldco offers an array of precious metals for IRAs, including gold and silver coins and bars. For the experienced investor, Goldco offers comprehensive resources to assist in making educated decisions about retirement investments. It’s highly recommended that you contact their knowledgeable representatives directly to get free guides or discuss your options.

See our full review on Goldco

Birch Gold Group Review

Since 2003, Birch Gold Group has been helping investors safeguard their financial future by investing in precious metals. Birch Gold Group is highly regarded, boasting an A+ rating from the Better Business Bureau and a Triple-A rating from the Business Consumer Alliance – making them an ideal option for conservative investors wanting security in times of market unpredictability.

For those new to gold IRAs or seasoned investors, Birch Gold Group offers free educational resources to help you make informed decisions. We recommend reaching out to their customer service representatives to discuss your investment goals before taking the plunge.

See our full review on Birch Gold Group

American Hartford Gold Review

As an investor, it’s crucial to consider all options. American Hartford Gold is a reputable company in the precious metals industry. Known for its exceptional customer service and competitive fees, this company has earned high ratings from satisfied clients. American Hartford Gold offers a range of gold and silver products that can appeal to both novice and experienced investors seeking to diversify their holdings with precious metals. Before making your final decision, make sure you contact them along with 2-3 other companies on our list, obtain their free guides and discuss any queries with their representatives.

Why Choose American Hartford Gold?

• Exceptional customer service

• Competitive fees

• High ratings from satisfied clients

• Offers a variety of gold and silver products

Investing in precious metals can be a savvy decision for diversifying investments. American Hartford Gold is a great option to consider due to their reputation and offerings. Do your own investigation and evaluate them against other firms in your selection. Happy investing.

See our full review on American Hartford Gold

Our Top Pick for Gold IRA Company

After careful consideration, we’ve determined that Augusta Precious Metals is the best overall Gold IRA company. Their fees are competitive, customer service is exceptional, and they have a strong reputation in the industry. For those seeking safe and secure storage of their precious metals, Augusta Precious Metals offers a variety of options. Whether you’re a novice or experienced investor, Augusta Precious Metals provides comprehensive services tailored to meet your needs.

Why Augusta Precious Metals Stands Out

• Competitive Fees: Augusta Precious Metals offers some of the lowest fees in the industry, making it an affordable option for investors.

• Exceptional Customer Service: Their customer service team is knowledgeable and responsive, ensuring that investors receive the support they need.

• Strong Reputation: Augusta Precious Metals has a solid reputation in the industry, with many satisfied customers and positive reviews.

• Range of Storage Options: Investors can choose from a variety of storage options, including segregated storage and offshore storage, to meet their individual needs.

Overall, Augusta Precious Metals is our top choice for investors looking to diversify their retirement portfolio with precious metals. Their comprehensive services, competitive fees, and exceptional customer service make them a standout in the industry.

See our full review on Augusta Precious metals

Next Steps: What to Do Now?

Now that you have the lowdown on our top-rated Gold IRA companies, it’s time to take action.

For more information on each of the providers above, we recommend reading our full guide and individual reviews for:

• Augusta Precious Metals

• Goldco

• Birch Gold Group

• American Hartford Gold

We suggest reaching out to at least 2-3 firms from our list of recommended gold IRA dealers. Start by obtaining and reviewing their free guides. After reviewing the free guides, engage in a conversation with customer service representatives to gain an understanding of their processes. Remember, these are highly recommended providers, but it’s crucial to conduct your own due diligence before making any commitments. Protecting your wealth is serious business, so make sure you’re entrusting it to capable hands.

Looking for more Diversity?

Check out our Crypto IRAs reviews to see if they are a good fit for you.