Top 10 List of Gold IRA Dealer Scams & Gimmicks to Watch Out For in 2022
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When you are considering a gold or silver purchase with your retirement savings, naturally, you want to talk to a few companies to learn more, and decide who you want to do business with.
The gold IRA dealers definitely want your business. And you might hear some very enticing offers to win you over.
How do you know if what you're hearing is true?
Well, take note of the points listed in this article and you'll be able to quickly tell a reliable dealer from the other not so reputable ones.
Before we get started:
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Intro: Beware of Free Gold or Silver Offers
It's gotten so crazy that gold IRA dealers are offering huge amounts of free gold or silver to persuade you to buy from them instead of another company.
But it's not really a cost-benefit for you.
In actuality, you may pay for that free gold or silver, because they factor it into the price of what you're buying. So, it's not really a special deal.
If a company offers you huge amounts of free precious metal to win your business, be careful.
Recently, when we talked with people who are shopping gold IRA companies, we heard some pretty outrageous lies being told to the public.
The article you're reading now was designed to alert everyone to 10 big gold IRA dealer lies we've heard from the people we've talked to.
So, let's get to it...
Gold Ira Dealer Lie #1 - Storytelling
Now, storytelling in itself isn't a lie.
We call it a lie and start with it at the top of our list because usually a story leads into the lie that there is an exceptional opportunity for you to get gold at a great price.
The story gives the dealer an excuse to tell the lie.
They may tell you someone died, someone is getting divorced, they are making a huge institutional trade, they have a surplus, or any number of other excuses that lead to the lie of the exceptional opportunity for gold at a crazy good price you should not miss.
Once you start hearing the story, get ready for the lie.
The truth is, gold and silver prices are very straightforward.
For the most part circumstances don't change the price.
Can you imagine your equities broker telling you that you have a unique opportunity to buy discounted Apple stock because they happen to be placing a huge trade, or someone died, or is getting divorced? Definitely not...
As a buyer of gold and silver, and to understand why stories like this are a setup, you have to understand more about gold and silver prices themselves.
The spot price of gold and silver is the futures contract price. It's the price at which mints and institutions buy raw ore from the mines.
In general, no one can pay spot but those institutions. Not you, not me, and not the gold IRA dealers.
National gold and silver dealers do millions of dollars in transactions daily and weekly throughout the year. So their volume already has them paying the lowest buying price. And all the big dealers are paying close to the same price.
So you see, for the most part, no big discount is possible. No story could set up a better price opportunity for dealers than the prices that they are already getting.
So how can they offer you a d big discount? They can't...
Gold IRA Dealer Lie #2 - Cancellation Opportunity.
Let's say for some strange reason, a gold IRA dealer purchases gold and silver and gets quote unquote, "stuck with it" because of a cancellation due to some extraordinary circumstance, such as a death.
The dealer tells you they need to get it sold off so they're willing to sell it to you at a discount.
They say it's a great opportunity for you. But let me ask you, why would a company doing millions of dollars in business daily or weekly be holding on to inventory from a canceled order waiting for you to decide?
With the IRA transfer possibly taking weeks, you have to ask yourself, why isn't it immediately being used to fill the next order? Which leads into lie number three...
Gold IRA Dealer Lie #3 - Inventory.
For the most part, gold IRA dealers do not sell from inventory.
If any dealer gives you an excuse involving inventory, it's probably not true. Simple as that.
Gold IRA Dealer Lie #4 - Let Me Check The Vault.
If you hear this, run the other way.
The salesperson you are speaking to is probably in a room with other salespeople. And there's almost certainly no vault they are checking.
Vaults aren't kept on sales floors. And there is no valid special deal 10 minutes later on something they found 'in the vault.'
Gold IRA Dealer Lie #5 - Universal Guaranteed Price Over Spot.
Different coins have different prices over spot, not one universal price.
But some companies may tell you all of their coins are one price over spot. They may be trying to make you think you don't have to investigate actual coin prices.
But for the specific coins and bars you are looking at, you should always ask how much the price is over spot so you have the correct information. Don't believe the 'Universal Guaranteed Price' line.
Gold IRA Dealer Lie #6 - Piggybacking On A Big Trade.
You might hear a dealer say there's an institutional or large trade happening coincidentally at the time you want to buy. Or they might say it's scheduled for sometime soon and it's a better price opportunity for you if you piggyback your purchase on it.
This is again likely not true, because established national dealers are already doing the volume of business that gives them the lowest possible price.
Gold IRA Dealer Lie #7 - Price Protection Program.
If your gold IRA dealer says they can guarantee the market for more than a short period of time, such as past one week, then hang up the phone.
They may claim that if the market goes down, it will guarantee your investment and cover your shortfall. But it's likely not true.
Even offering such a program is outrageous, because making such an offer the gold ira dealer is effectively guaranteeing you profits! Please, please don't believe this. There are no guaranteed profits.
Now, let's talk about a lie you've probably heard of in other industries as well.
Gold IRA Dealer Lie #8 - Bait and Switch.
In this situation, the gold IRA dealer lists gold and silver assets on their website, or they quote you a price on an item they 'only have a few of' at a below market price.
This draws you in but they have no intention of selling you that item.
They might not even have access to it at that price in bulk.
Instead, they switch the conversation to another product. This is called the bait and switch because they bait you with one product at a low price they do not intend to or cannot deliver.
They use that bait to start the conversation so they can then sell you into something else.
This can work sometimes, if you make the mistake of thinking the original item is so cheap that they must have great prices on everything.
Gold IRA Dealer Lie #9 - Must Buy Now.
We've all heard a salesperson say:
"This special is ending soon so buy now to take advantage of this opportunity."
Have you ever wondered why the special is always ending soon after you call?
The only reason they say this is because it's a way to get you to act without thinking. Because you don't want to miss the opportunity.
You should never work with a company that is trying to force you to act quickly without taking your time to think.
Beware of any specials ending soon.
Gold IRA Dealer Lie #10 - Low Spread.
This can be a lie, and it can be a trap.
When you're ready to buy your gold. The dealer says it will offer you a lower spread on the ask than other companies. Basically, a discount.
The ask Is your buying price, the bid is the price you eventually sell it for, and the spread is the difference between the two.
Offering a lower spread on the ask could be a lie. Because as you will see with a Google search on American Eagles or other common gold coin products, price norms are very close to each other. A dealer can't lower the price much.
This tactic is also a trap.
Because when it's time to sell, you'll find most gold IRA dealers only pay the full bid price when you sell back to your original dealer.
This essentially traps you into selling back to them, which isn't necessarily a bad thing in itself as it can give you peace of mind when you need to sell that you can get full bid price. But if a dealer has given you a slightly lower spread on the ask, it's common practice that these companies will then apply a charge on your buyback transaction to cover the 'lower spread' they gave you on your initial buy in. So you may sell your gold back to them at full bid, which is great, but then you may be slugged with excessive fees so they can recoup their profits they would have normally made on the original sale.
It's important to understand that most gold IRA dealers only make money on sales, not buybacks. For that reason, you are likely to get the best repurchase price from the dealer who sold you your gold.
The only reason you might sell to another company would be: one, because your original dealers is no longer in business, two, they aren't honoring buybacks, or three, they're giving you a lousy buyback price.
However, if you go to another company to sell your gold, they won't have made money on the original sale. So they will probably offer to buy it back at a very low price.
So, be careful of any company offering a lower spread. It my seem to be cheaper upfront to buy your gold, but beware of the fees on the backend when you want to sell, as they may far exceed the discount you got on your initial purchase.
All of this emphasizes an important fact. When it comes to buying gold and silver, the reputation of the company you work with is critical. You need a dealer to be with you for the long run, not one that is slightly cheaper buy a fraction at the start.
Remember, this is your retirement savings. And you will need assistance along the way with contributions, distributions, transfers, and buybacks.
Make sure you choose the right company for that journey, and don't fall for the 'slightly lower spread trap.'
Here's another thought. If the only value a gold ira dealer has for its customers is being fractionally cheaper, it likely hasn't built a company of much value at all.
Ask yourself, where is the information you are being told coming from? the company? or the salesperson?
The salesperson may be telling you things that aren't true, or twisting the truth because they are so desperate to get a sale. But the real responsibility for truth in the sale of precious metals rests with the company.
They must have a trustworthy compliance system in place and train their salespeople on what they can and can't say.
One great way to ensure you are being told the truth when big promises are made, is to ask for that big promise in writing and ask that the CEO or someone from upper management who is listed on the website, sign it.
When companies are truly compliant it shows in the reviews of customers and watchdog institutions like the BBB, BCA, and trust link. You can check out those reviews anytime online.
And if you want to learn how compliance should be run from a company that has made compliance and transparency a major part of its business, and has clients like ex NFL superstar Joe Montana, go here to check them out and request their free guide. Or call them directly on 877-565-3712
Remember, buyer beware. If it sounds too good to be true, it usually is. I wish you all the best in your gold and silver journey.
It is this reason that Augusta finds itself as the best gold IRA company due to it's transparent pricing and outstanding customer service.