How To Avoid Gold IRA Scams: A Guide From Augusta Precious Metals

The price of gold seems to be skyrocketing in 2023 as investors scramble to protect their net worth in a turbulent economic environment. In such an environment, some predatory companies have been taking advantage of investors’ anxious demand for precious metals. Offering ludicrous offers and telling what can only be termed outrageous lies, some precious metal IRA companies have been leveraging their customers’ ignorance to secure sales while neglecting their well-being. 

To keep investors safe, Augusta Precious Metals has distilled the 10 ways that a precious metal IRA provider could potentially twist the truth. “If you hear a salesperson saying any of these things, run the other way,” the company says. Augusta is committed to not only the sale of precious metals but the education of its customers on the pros and cons of the asset class and its role in the economy. Here are some statements the company warns against.

1. Offering “free” silver. Precious metal salespersons may offer potential customers “free” silver, but then hide the real cost in fees incurred when installing a precious metal account.
2. “Creative” storytelling. Precious metal salespersons may create a story that generates a plausible reason for why their customers can get gold at a “great price.” The truth is gold and silver prices are determined by their spot prices. There is no “free lunch.”
3. “Cancellation Opportunity.” This is a specific story a salesperson may describe. The gold IRA dealer purchases gold and silver and “gets stuck with it” because of a cancellation due to an extraordinary circumstance like the buyer’s default on debt. They need to sell the precious metals at a discount. This is likely a lie.
4. Inventory. If any mention of “inventory” is made from a precious IRA dealer, be suspicious. Gold IRA dealers do not hold inventory.
5. “Let me check the vault.” If a salesperson says this phrase, they’re likely lying. Vaults are not held on sales floors. The Internal Revenue Service (IRS) has strict rules for where precious metals can be held; A sales floor is not one of them. 
6. “Universal guaranteed price over spot.” Different coins may have prices over the spot price. Some companies may say all their coins are priced over the spot price (meaning they create instant profits!). This may occur, but the likelihood of all inventory being over the spot at the same time may be cause to raise some alarms.
7. “Piggybacking on a trade.” A salesperson will say there’s a large institutional trade, and the customer will be granted a better price opportunity if they go along with it. This is very likely a lie.
8. The price-protection program. Some precious metal IRA dealers will say they will cover the cost of any losses incurred on the purchase following a certain period of time. This is akin to saying they know the future of the market. No one knows the future of the market with certainty. Anyone willing to offer a price-protection program over a long period of time is likely either lying or engaging in unprofessional behavior, explains Augusta.
9. “You must buy now!” Offering a special and then saying it’s only available for a short while triggers an emotional response. This can induce customers to act rashly and without thinking. Augusta suggests “You should never work with a company that wants you to act without thinking.”
10. “Bait and Switch.” In this situation, the gold IRA dealer lists gold and silver assets on their website, or they quote items that they have at a below-market price. This draws the customer’s attention. In reality, they do not have the product or cannot offer it at the dictated price. Instead, they offer another product, which was not originally pitched. 

A full breakdown of gold IRA scams can be found in this video. 

Picking A Trustworthy Gold IRA Dealer: Augusta Precious Metals

Picking a reputable and trustworthy precious metal IRA provider is crucial for a smooth investing journey. Because customers seeking IRAs are usually looking to protect their retirements, the ethical considerations take even higher precedence than normal. 

For those seeking a credible precious metal IRA provider, Augusta Precious Metals may be one of the best options in America. The company has captured over 1,000 5-star reviews, received the “Best Overall Gold IRA Company in 2023” by Money magazine and secured legendary quarterback Joe Montana as a customer and spokesperson. Unlike other dealers, Augusta is committed to educating its customers about the role of precious metals in the economy and how to make educated investment decisions about retirement. 

Augusta is offering a free webinar to educate the public about gold IRA investing. The webinar will cover minute details like processing fees and general information like gold’s role in the economy and its function as a safe haven asset. For its customers, Augusta dedicates representatives to them whose main role is to ensure client satisfaction and to promote educated investment decisions. 

Click here to learn more.

Featured photo by Scottsdale Mint on Unsplash.

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