Avoid the Gold IRA Scammers

  • A gold IRA is a self-directed Individual Retirement Account (IRA) that allows investors to buy gold bars, coins, and bullion for retirement.
  • A gold IRA can be a good investment option for retirement.
  • Gold is historically stable against inflation and typically provides a hedge against economic uncertainty.

Gold investors have several options for investing their funds in the precious metal. One of the most popular methods is through a self-directed Individual Retirement Account (IRA), which allows you to buy gold bars, coins, and bullion as part of your IRA.
While a gold IRA is a great way to invest your funds in gold, it's important to note that there are more than its fair share of scammers out there.

Gold Scammer Top Ten

1. Gold IRA Rollover - This may be the biggest rip-off of all. Basically, the scammer tells you that you have an IRA account that has accumulated a small amount of physical gold but that it needs to be moved and that you have to pay to have this done. By paying the fee, your gold is moved to your IRA account.

The trouble with this is that an IRA account does not have any physical gold in it. When you open an IRA account, you typically purchase shares of stock or other securities. A physical gold IRA account doesn't exist.

If you do have gold in an IRA account and want to move it, you have two choices:
1. You can sell your gold, take the proceeds and buy gold bullion, and then have your IRA custodian transfer the bullion to your new account.

See also  Gold for a 401k: What you need to know

2. You can have your IRA custodian transfer the bullion to a depository where you have an account, such as Goldline.

Free Gold IRA kit

gold ira scams

Gold Scammer #10: The 'Gold Rush'

This scam involves convincing investors that the gold market is likely to reach new highs soon, and that the price of gold will explode as a result.
Gold Scammer #9: 'Flip-Flopping'
This scam involves buying gold at a low price and then selling it minutes later at a higher price.
Gold Scammer #8: 'Churning'
This scam involves purchasing physical gold and selling it shortly after a purchase. This scam is also known as 'churning' and 'laundering' gold.

Gold Scammer #8: The 'No Risk' Guarantee

Gold IRA scams are prevalent and tricky. Scammers know that most investors want more gold in their IRAs, so they are all too eager to provide it.
Scammers often use guarantees to convince investors that investing in gold is risk-free. Many gold IRA companies make bold statements such as the following:
"No risk. No obligation."
"We guarantee a 10% annual return."
"Our investors have made 5,000% in 10 years."

These statements are false, and consumers should know better. Some gold IRA scams even go further and guarantee a 100% gain in 12 months. Do not fall for these scams.