With interest rates at record lows, many of us with savings will be looking out for better investment opportunities. Well, how about….. GOLD? This is the most coveted precious metal since time began, but beware of the Gold Scam! Gold prices keep on falling, but the number of Gold Scams keeps on rising.
Market Conditions are Ripe for the Gold Scam
At the time of typing this, the price of Gold is approx $44 000 per kilo, but don’t panic! These Gold Sellers in Ghana/Guinea/Mali (etc) have some Gold at almost unbelievable prices, just for you! It may be in bars, coins, or dust but why not grab it while you can?
If you are suspicious about its quality, no problem! Your Seller will helpfully offer to send you a small 5g sample by courier for you to assay. He may even agree to send a Representative to deliver it your home by hand and collect the cash for the full quantity of your Gold, which will be delivered to your home within 7 days from payment.
Sometimes, very occasionally, the Rep may actually bring not just the sample, but also all of your Gold. He will want to collect the payment in cash, or by online bank transfer with him looking over your shoulder as you use your PC.
So, what is the Gold Scam?
Well, it depends…..
If you are asked to pay upfront (the purchase price or a percentage of it, or perhaps to clear the Gold through Customs) the chances are that your Gold will never be delivered. They have your money.
If your Rep actually brings all of your Gold with him (it has been known to happen) the Scam becomes more complicated, and potentially dangerous. You could be invited into a Hotel room to complete the transaction, where you will doubtless be robbed at knife or gunpoint.
If you complete the deal in a public place, you will be buying Black Market Gold with no documentation. It could be stolen, or more likely ‘Blood Gold’ mined with slave labour, or where the mine owner is being extorted by his local military.
If you are unwise enough to disclose your address (for delivery or a Rep’s visit) to one of these Gold Scam gangs, you open up your home and all who live in it to a myriad of potential problems. Unwelcome visitors may appear at your door to extort or steal money from you and yours.
The Gold Scam is just that, a Scam. Ignore any emails or phone calls offering you Gold at bargain prices. The only traders to profit from these transactions will be the Gold Scammers.
Remember: If you are serious about investing in Gold, then go for it, but use common sense, do your research, and only use a reputable company.