Can you get scammed if you buy gold from some store online?

Unlike other products or instruments, buying gold bars is not always a safe and simple process. It has attracted many traders who take advantage of investors to illegally obtain money through various scams, such as Gold IRA scams. You should know how jewelers weigh gold. The measure accepted in the international market is in troy ounces. When traders and investors talk about spot prices, they always refer to troy ounces as well.

A troy ounce is not the same as a standard ounce. Technically, a single troy ounce is equivalent to 10971 standard ounces or 31,1035 grams. It seems a little strange that there is so much demand for gold at a time when it is not trading at the highest market prices, doesn't it? And, in fact, it's a little strange. But there is an explanation, and not a very happy one.

The thing is that some scammers have realized that if they can trick people into selling gold at prices that are below current trading levels, big profits can still be made. The United States Gold Office, directors and representatives do not guarantee customers that they will make profits or guarantee that losses cannot be incurred as a result of following their coin collection recommendations or after the liquidation of coins purchased at the United States Gold Office. Sponsors claim that investing in gold through the ETF may be more profitable than holding gold yourself. If a magnet is attracted to what you think is a gold coin, it's most likely not real gold (or 99.9 percent pure).

It's common for gold sellers to include some kind of commission or profit margin for what they sell (after all, they're a business), but you're less likely to find out after buying gold with an extreme profit margin if you first do a little more research than the basics. The best way to avoid this scam is to buy your gold in person or through an affiliated broker so that you can better determine if the gold is legitimate. In addition, shady gold traders offer low quotes to attract customers, but they cannot deliver gold at these rates. Gold can be a good investment if your goal is to protect yourself from inflation, as gold prices tend to rise in an inflationary environment.

Instead, many choose to invest in gold by purchasing shares in a publicly traded fund that owns and maintains physical gold. For gold jewelry or collectible coins, look for a stamp on the item that shows the carat weight of the gold. Sometimes it's simply a matter of gold sellers saying that the coins they sell are worth much more than they are worth; sometimes, the “gold that investors buy” doesn't exist at all or isn't real gold. The gold buyer gives him only part of what his gold is really worth, then sells it at market prices and (of course) keeps the difference.

A few years ago, he bought gold stocks through a broker, but all he got was a certificate; the gold was in a vault in Australia. And in any case, he says, be wary of anyone who suggests buying gold or gold stocks as a way to make money. Gold sellers from legitimate companies are there to help you understand the offers available and make the best decision for you, but some gold scammers use cold calling because convincing someone to make a split decision reduces the likelihood that their victims will conduct basic research that shows that the caller is a farce.