In a few minutes you will be on the way to setting up a successful gold IRA and keeping the scammers at bay.
There is no shortage of Gold IRA scams on the internet. If you’re considering setting up a precious metals IRA chances are you’ve already seen some of these tricks.
The sole purpose of these scams is to persuade you into buying overpriced gold and silver coins. This leads to you taking a big financial loss at the start of your new investment.
We receive calls everyday from unsuspecting investors that get taken advantage of. The common thread is that 100% of these scams are from Southern California gold IRA dealers.
In response we have created the top 10 gold IRA scams you’ll likely come across while setting up your new account.
Most Fraudulent Gold IRA Scam –Best Gold Company “Paid Affiliate Reviews”
If you’re new to the gold IRA market, you obviously want to make sure you’re dealing with a good company. You may even search the internet for the best gold IRA company.
But beware because the first page of search results might not be as informative as this page. What you’ll find instead is countless paid affiliate marketing “review websites”.
An affiliate marketer earns a commission for reviewing a company or product. They also need to get you to click or call. These are basically paid ads made to look like honest reviews.
They will even make up a strict method they uses to find the so-called best company.
In recent years the precious metals market has been overrun by affiliate marketers. They are all trying to get a piece of the pie. 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:
Here’s how the scam works. An affiliate website will “review” select gold ira companies. All the so-called best gold IRA companies are paying affiliate commission.
They’ll give you the pros and cons of different firms and may even write about the method used. But invariably the affiliate will recommend one company above all others. They will usually say this is the #1 gold IRA company or learn about our top pick.
This is always the company that pays the one of the highest affiliate commissions.
Now that wouldn’t be a bad thing if the company they recommended was a good one. But they’re not.
They’re overpriced Southern California dealers. Some even have many complaints and lawsuits pending. All of them have buy/sell that go to over 33%.
Are they always overpriced? Yes, You’re likely referred to the firm that pays the most, which is 6% your gross IRA value.
Let me make this clear. You pay 6% 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.
- $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
Now you can see why the precious metals influence game has such big name websites involved. It’s all done to impress and influence you. It will cost you plenty if you get involved with gold dealers that play these games.
The actual best gold IRA companies don’t pay affiliate commissions, which is why you won’t find them in monetized reviews.
Remember for a gold exchange to be great they should cut your cost, not add to them. To find out if a company you’re talking to pays affiliate commissions, call 800-300-0715 immediately.
Free Gold and Silver Promotions
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 dealers will offer you “free” silver or gold coins if you set up your precious metal IRA with them.
But there’s a catch. You have to buy the coins that they recommend. Which invariably will be “semi-numismatic” or “collectable coins”. They’ll call them “premium” or “exclusive”. (See gold IRA scam #8.)
The reason you have to buy those coins is the profit margins can typically range from 33% to 66%. Yes, you read that correctly. So to offer you some “free” precious metals to make you think you’re getting a good deal is a drop in the bucket.
If a gold dealer is offering you “free” gold or silver, watch out because they have an ulterior motive.
If you want to learn how to buy precious metals with a volume discount call CGE today and ask about our Price Match Plus Guarantee. Its an automatic system CGE uses to check the 6 major online discounters and then beats their selling price before your allowed to place an order.
Zero Fees for Life Promos
There is no such thing as a non-profit gold IRA custodian. They all charge fees for their services, and rightfully so.
If a gold dealer is offering you a “Zero Fee” gold IRA, watch out. Because they don’t exist.
What’s happening is you’ll be overcharged for your precious metals and they’ll pay your fees from the proceeds. You’re paying either way.
So don’t fall for the “Zero Fee” or “Free” gold IRA scams.
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 precious metals. Because paying a celebrity to endorse a product is very expensive.
Many Southern California gold dealers have massive marketing budgets. Millions and millions of dollars. And they can afford it when they’re charging buy/sell spreads of over 30% on average.
But who’s paying for those huge contracts 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, several of them have been sued by numerous City Attorneys for their business practices
The common thread? They all had Fox News host endorsement deals.
Don’t be fooled by a celebrity endorsement. 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.
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.
You’d be much better off searching for the complaints and lawsuits filed. That’ll give you a much more realistic idea of the track record and level of integrity of the company you’re researching.
Check for complaints with the Better Business Bureau and 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.
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 might 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 That Go to 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 One Page Long With Text On A Single Side
- 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 contract and be able to live with the terms.
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. They are creating a lot of victims, and the class action attorneys are already smelling blood in the water.
Typical Southern California gold IRA companies have buy/sell spreads in the 33-37%.
In fact, one firm’s contract even states they may charge you over 60%. Even at a 30% spread, 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.
Give Power of Attorney to Gold IRA Dealers
When you complete your 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.
Buy Premium or Exclusive Coins
The most sinister of all gold IRA scams is the “premium” or “exclusive” coin trick. It’s the king of overpayment scams.
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’ll have to 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 almost impossible to price check the 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 coins.
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 roller 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.”
But that’s not the worst of it. What is? All of the above complaints are about Top or Best or #1 Rated Gold IRA Companies. According to affiliate marketers that is.
If the company you’re considering or are already speaking with sells “exclusive” or “premium” coins, you’re about to get scalped.
Call our gold IRA department at 800-300-0715 so you’re not another victim.
They Take Months to Ship Your Precious Metals
When you buy gold or other precious 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 the physical gold and silver to your depository 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 gold 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.
Think carefully before investing with a company that has a Los Angeles area office “Avoid Lala land”
What do all the previous nine gold IRA scams have in common? They all stem from liberal Los Angeles area dealers targeting Christians.
You have conservative values, so why invest with a company in a city more liberal than Seattle? 71 percent of Los Angeles residents voted for Hillary Clinton and Joe Biden.
We only point this out, because in 31 years we’ve heard countless stories from fellow Christian conservatives that have lost money to the LA’s gold IRA dealers. Frequently it takes investors years to break even. And that’s when gold and silver 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 Los Angeles.
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’re not going to fall for any gold scams.
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, call us at 800-300-0715. Our dedicated gold IRA team can help. Or at least get you pointed in the right direction.
Gold IRA Scams FAQ’s
Below are a few additional questions that may come up while you’re researching gold IRAs.
Should I Be Concerned About Counterfeit Coins?
Counterfeit gold definitely exists. But 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.
Reputable gold dealers will have a guarantee protecting you from receiving counterfeit gold.
Are Precious Metal IRAs a Risk Free Investment?
Precious metal investments carry risk, just like any other asset class. No IRA investments are risk free. Gold investments will both rise and fall over time. If someone tells you your gold investments are guaranteed to move up in value, that gold prices will only increase, beware. They’re telling you what they think you want to hear.
Can I Own Rare Coins in my Investment Portfolio?
According to the IRS, gold IRAs cannot own rare coins. There is one exception though. Gold IRAs can hold American Eagle Proof coins.
Call our experts today at 800-300-0715. You’ll receive accountability, transparency, integrity and avoid gold IRA scams.
Written by Pat Collins and John Halloran