9 Common Gold IRA Scams and How to Avoid Them At All Costs

<pIf you’re looking for a way to diversify your retirement and are considering investing in precious metals, this article is a MUST READ.

Because we’re going to expose the gold IRA scams that unscrupulous dealers in the precious metals industry are attempting to trick you with.

If you’ve been researching how to invest in a gold IRA chances are you’ve already seen some of them.

The sole purpose of these scams is to persuade you into buying overpriced gold and silver coins. Which immediately results in a big financial loss by paying markups in excess of 30%.

We receive calls everyday from unsuspecting gold IRA investors that have been taken advantage of. So in response we have created the top gold IRA scams to avoid.

If you just read the following article, the chances of you getting scammed are slim to none.

#1 Do Not Buy Premium or Exclusive Coins for your Precious Metals IRA

This is the most important to point of all. If you want to avoid overpaying by 30% or more and your gold IRA immediately taking a huge loss. Here’s how it works.

A gold dealer will contract with the Royal Canadian Mint for example to have an exclusive coin minted. As part of the contract they agree to purchase a certain amount of the bullion coins. The important part is that they are the only company with access to these exclusive coins. At least initially.

Or as one client complained. “I was not told the coins were minted only for ******* and not sold to anyone else.”

This provides an advantage in that it’s impossible to compare different offers of coins that only they sell. So you’ll have to take their word about their value.

Or as another complaint reads, “I requested the value of the coins ****** purchased for me as I could not find them anywhere on the internet.”

They may tell you that they’re rare coins and only a certain amount were minted. They may even say they’re collectible.

But if you tried to sell them back the moment after you bought them, you may find you lost over 30% in value immediately.

Or as another client complained, “I purchased $236,000 in silver and gold coins from ******* as a 401K rollover investment . I later learned my coins were sold to me at inflated prices. Up to 100% over spot on gold and 150% on silver. The statement reads $107,000. It appears I lost 50% of the value of my entire retirement 401K purchase in what the real value of the coins are.”

And another states, ”I was convinced to buy premium silver coins for $85 a coin, that were really worth about $30-35 a coin.”

What’s worse is that all of the above complaints are about the so called Top or Best or #1 Rated Gold IRA Companies. (According to affiliate marketers as we’ll touch on shortly.)

If the company you’re considering or are already speaking with offers “exclusive” or “premium” items, and if you feel pressure to invest in something you’re not comfortable with, you’re about to get scalped. Always stick with standard bullion coins and bars.

Call our gold IRA department at 800-300-0715 so you’re not another victim.

#2 Best Gold IRA Company “Reviews”

If you’re new to precious metals investing, you obviously want to deal with a reputable gold IRA company. You may even search for the “best gold IRA company” on the internet.

But the search results aren’t going to deliver what you’re looking for. What you’ll find instead is page after page of “review websites” that are being paid a commission by the companies they’re supposedly reviewing.

It’s called affiliate marketing. And in recent years the gold IRA industry has been overrun by them. Because there’s a lot of money involved when dealing with people’s retirement savings. Your retirement savings!

Even the following big name websites have become paid gold IRA affiliates:

• Forbes
• CNBC
• Money
• Investopedia
• Business-Insider
• Yahoo

Here’s how it works. An affiliate website will “review” select gold ira companies. They’ll give you the pros and cons of different firms but will invariably recommend one company above all others as the #1 best gold IRA company.

Now that wouldn’t be a bad thing if the company they recommended was a good one. But they’re typically not.

What you’ll frequently find is they’re overpriced Southern California dealers known for high-pressure sales tactics. Most will have countless complaints and some even lawsuits that are pending. And they’ll all typically have markups of up to 33% or more.

Are they always overpriced? Yes, and you’re likely referred to the firm that pays the highest commission which can be up to 6% of your IRA value.

To be clear. You can lose 6% of the value of your account but that’s not to buy the metal. That 6% goes to pay the website that tricks you into thinking this company is the best.

And that’s why these firms try to sell you coins they call “exclusive” or “premium”. So they can charge you outlandish commissions to pay their affiliates among other expenses.

• $1,000,000 IRA Value Can Earn The Gold Affiliate $60,000 In Commissions
• $100,000 IRA Value Can Earn The Gold Affiliate $6,000 In Commissions

The actual best gold IRA companies don’t pay affiliate commissions, which is why you won’t find them in monetized reviews.

To find out if a company you’re talking to pays affiliate commissions, call 800-300-0715 immediately.

#3 – Free Gold and Silver Scams

We all know the saying “if it sounds too good to be true, it probably is”. But oddly enough, offering people something for “free” is still enticing to a lot of people.

Many Southern California gold IRA companies may offer you “free” silver or gold coins for opening a gold IRA with them.

But there’s a catch. When it comes time to making an investment decision, you have to buy the overpriced “premium” or “exclusive” coins they recommend.

The reason being is that they typically carry a markup from 33% to 66%. Yes, you read that correctly. So offering you some “free” silver to make you think you’re getting a good deal is a drop in the bucket.

Avoid companies offering you anything for free because they have an ulterior motive.

If you want to learn how to buy precious metals for your IRA rollover with a volume discount call CGE today and ask about our Price Match Plus Guarantee.

#4 – Zero Fees for Life Promos

There is no such thing as a non-profit self-directed IRA custodian. They all charge annual custodial and storage fees for their services, and rightfully so.

If a dealer is offering “Zero Fee” gold IRA accounts, watch out. Because they don’t exist.

What’s happening is you’ll be overcharged for your precious metals and they’ll pay your maintenance fees and storage fees from the proceeds. You’re paying either way.

So avoid gold IRA scams offering to pay for your custodial fees. These so-called money-saving offers can get you into hot water.

#5 – High Paid Conservative Celebrity Endorsements

While hiring a celebrity to endorse your company is not officially a scam. It is a strong indicator you’re going to overpay for your IRA precious metals. Because paying a celebrity to endorse a product is very expensive.

Many Southern California dealers have massive multi million dollar marketing budgets. And they can afford it when they markup metal over 30% on average.

But who’s paying the massive contract (reportedly $30,000 a month) to Fox news hosts, famous quarterbacks, retired politicians and conservative pundits? You are of course.

And just because a well known conservative personality endorses a particular company, doesn’t mean they’re one of the reputable gold IRA companies. In fact, firms that have been endorsed by high paid conservative celebrities include Regal Assets, Oxford Gold Group and Red Rock Secured. All currently out of business, their investors were cheated out of millions.

Although companies may try to fool you with a celebrity endorsement, don’t fall for it. Because at the end of the day, you’re going to pay more for your precious metals investments than is necessary. And usually, a lot more.

#6 – Fake Reviews

Checking out a company’s reviews is important. You want to know what other people have to say about their experience.

But many companies use “reputation management” strategies that include paying for fake reviews. Just search “buy reviews” and you’ll find countless companies that offer this service for a fee.

So don’t be misled by a company that claims they have 1,000s of positive reviews. Are some of them legitimate, sure. But if a company has some very poor reviews, they’ll frequently try to drown them out with “positive” reviews they’ve bought.

Avoid this scam by searching for a companies complaints and state or federal lawsuits filed against them. That’ll give you a much more realistic idea of the track record and level of integrity of the company you’re researching.

Even if a company is accredited by the BBB and has an A+ rating, read the complaints posted there and the Business Consumer Alliance.

Anyone can pay a company in India to create fake reviews for them but it’s hard to hide legitimate client complaints.

#7 – Read the Fine Print on the Transaction Contract

All gold IRA companies will have a written contract with their clients. It’s important for you to read every sentence to understand the terms of your transaction.

What you’re being told by the precious metals salespeople may be a lie, but the truth is in the contract.

When reading a precious metals dealer’s sales contract, never agree to the following:

• Small Hard to Read Print
• Multi-Page Agreements
• Legal Mumbo Jumbo Language
• Buy/Sell Spreads of Over 30%
• Give Away Your Right to Join a Class Action

When purchasing precious metals, you should only sign a sales contract that:

• Is Easy to Read in Simple Language.
• Is a Single Page Long
• You Completely Understand

If a company does not have a contract, that is a sign they are very unprofessional. Buying precious metals is a financial transaction. You should only use a company that has a written contract in place.

Ask yourself why a company would have a special contract clause that forbids clients from participating in a class action lawsuit. There is only one answer. Scammers create a lot of victims, and the class action attorneys are already smell blood in the water.

Typical Southern California gold IRA companies markup their metals by over 30%.

In fact, one firm’s contract even states they may charge you over 69%. Even at a 30% markup, it’s double what you actually need to spend to buy pure gold and silver bullion coins or bars.

This is why we always advise investors against using gold dealers in that part of the country.

If you have already started the process with a Southern California dealer, call the Certified Gold Exchange today at 800-300-0715.

#8 – You Give Power of Attorney to Gold IRA Dealers

When you’re executing a precious metal rollover and you complete a gold IRA custodian application you have the option to elect a Designated Representative for your account. It’s the equivalent of a Power of Attorney.

Most Southern California gold dealers will automatically input their information and expect you to give them control of your account. Meaning your gold dealer can buy, sell, trade and move your precious metals as they see fit. Without written authorization from you. They can sign for you.

The last thing they want is for you to see how much they’re charging you. It’s much easier for them to verbally confirm the purchase and sign the document themselves.

But that’s not the worst of it. If a dealer has Power of Attorney on your account, they can move your metal from the depository without your consent.

This recently happened to a client of Regal Assets, a former #1 ranked gold IRA investments company. The client contacted the depository to take possession of his physical gold bars. They informed him they had shipped the metal back to Regal Assets months prior. All without his consent because Regal had Power of Attorney on his account.

A client of another so called #1 ranked company complained of a similar abuse. After buying silver bars for his IRA, he received Maple Leafs. He writes, “How did this happen? Without consulting me?”

Because they don’t need his authorization to transact on his account. They have Power of Attorney.

Trustworthy gold IRA firms will never ask for Power of Attorney over your individual retirement account. If a company is requesting or assuming they’ll be your designated representative, run. Because they want complete control of your gold IRA investments.

Or better yet, call us at 800-300-0715.

#9 – They Take Months to Ship Your Precious Metals

When you buy gold or other metals for your IRA you expect it to be delivered in a timely fashion. But frequently that’s not the case.

Some precious metals dealers won’t ship your metals for months. And that’s never a good sign.

Following is a public complaint on a well known business rating website, “The gold and silver were to be sent out to a depository in Texas. I have called asking where my metals are. They have not been sent yet and it has been over 2 months since they received my money.”

According to the Federal Trade Commission, buyers who order merchandise via the internet or phone “have a reasonable basis to expect that the sellers can ship within the advertised time frame, or, if no time frame is specified, within 30 days.” The Rule also requires that, when a seller cannot ship within the promised time, the seller must obtain the buyer’s consent to a delay in shipping or refund payment for the unshipped merchandise.

Here’s another complaint from a different Southern California company, “My account was set up in January. I purchased coins on January 19, 2023. I still have not had my silver coins sent to the depository. When you purchase coins they should be shipped within a reasonable time. Four months and I still have not received the coins.“

Most dealers won’t tell you up front that it’s going to take them months to ship. If your gold IRA investment still hasn’t been delivered and it’s been over 30 days, you might be entitled to a refund. Call our gold IRA team at 800-300-0715 to learn about your options.

Conclusion

What do all the previous nine gold IRA scams have in common? They all stem from dealers in the Los Angeles area.

In 33 years we’ve heard countless stories of people being taken advantage of Southern California dealers. Frequently it takes investors years to break even if ever. And that’s when metals are skyrocketing. All because their commissions are so high.

Don’t let it happen to you. Call the Certified Gold Exchange first. We have a price match plus guarantee that checks the other major discounters and beats their price. This happens automatically before you are allowed to purchase from us.

Rest assured none of the major discounters are in Los Angeles.

Common Gold IRA Scams Summary

We’ve covered a lot of ground so far. The good news is that if you’ve gotten this far, chances are you won’t be taken advantage of.

It’s important that you remain diligent. Your hard earned retirement savings are on the line. And things aren’t always as they seem. Sometimes you have to dig a bit deeper to find the truth. But in the end it’ll be worth it. And it just might save you half of your retirement account..

If the company you’re researching or speaking with uses any of the “10 Gold IRA Scams” listed above, the steps you can take are to call us at 800-300-0715 now. Our dedicated gold IRA team can help. Or at least get you pointed in the right direction.

Frequently Asked Questions (FAQs)

Below are a few additional questions that may come up while you’re researching.

Should I Be Concerned About Fake Coins?

In order for metal to be allowed in your account is has to come from a government mint or an accredited refiner and meet strict purity standards. And most modern day bullion coins have anti-counterfeit technology built into their design. So a gold coin is much more difficult to counterfeit than gold bars for example.

But reputable firms will have a guarantee protecting you should they deliver counterfeit gold.

Are precious metal IRAs a risk free investment?

Precious metal investing is not risk free. The price of gold goes up and down over time just like other asset classes. If someone guarantees returns on your investment, watch out because they’re being less than forthcoming. Nobody can provide a guarantee of future returns. And past performance does not guarantee future results. Be sure to speak to a licensed financial advisor prior to rolling over your IRA as a hedge against inflation.

Can I own rare coins in my investment portfolio?

According to the IRS, you cannot own rare coins in an IRA. There is one exception though, American Eagle Proof coins.

Coins or bars on the LBMA good delivery list or minted by a reputable government mint are the most common items held by clients.

Why do affiliate marketers recommend companies that have many complaints and charge very high fees?

Affiliate marketing companies exploit investors because they’re being paid to do so. Their concern typically isn’t your experience as a client. It’s how much money can they make by referring you to a company that will charge you hefty commissions.

What is the best way to liquidate my gold or silver IRA?

If you’re working with a company that operates like the firms outlined above, it’s best to sell your gold IRA with the Certified Gold Exchange. You can liquidate your metals quickly using our Price Match Plus guarantee by calling 800-300-0715.

Are gold IRAs safe?

Yes, investing in a gold IRA is safe. In addition to diversification it can also provide you with significant upside depending on market conditions. But it is important to do your own due diligence to make sure you’re working with a reputable company that doesn’t partake in any of the above gold IRA scams. Also keep in mind that past performance is no guarantee of what will happen in the future.

Can my IRA metal be stored at home?

No. Your metal must be stored in an IRS-approved depository. Your custodian should have a few storage options with different depositories to choose from.

Are gold ETFs a good investment?

It depends on the ETFs and what you’re looking to accomplish. Some are better than others but at the end of the day you still don’t own any physical metal. You just have exposure to the price.