Navigating the market of gold and silver for your retirement savings can be tricky. Dealers are often vying for your business with alluring offers and seemingly attractive deals. However, not all that glitters is gold. Some Gold IRA dealers might resort to dishonest tactics to get you to buy from them.
“Buyer Beware, “if an offer sounds too good to be true, it likely is. Stay vigilant and always do your due diligence when investing your hard-earned retirement savings into precious metals.
In the gold and silver journey, information is your most valuable asset. Make sure to check all the facts and cross-verify any offers or promises made to you. The more informed you are, the better your decisions will be, leading to a more secure and prosperous future for your retirement.
It’s crucial to consider your options carefully and consult with several companies before making a definitive choice. Augusta Precious Metals is one firm I’ve built a trusted relationship with and can confidently endorse. You can get their Gold IRA Guide, accessible via this link, completely free of any purchasing obligation.
Affiliate Disclosure: Please note that I may receive a commission if you decide to make a purchase through my link at no additional cost to you. Despite this, my recommendations are always honest, and I only endorse services I truly believe in. Your trust is paramount to me.
Here are the top ten dealer lies to watch out for.
Storytelling, in this context, is often a deceptive tactic used by unscrupulous dealers to manipulate potential buyers. This strategy typically involves the creation of an elaborate narrative or “first lie” designed to entice and convince the buyer. The dealer may spin a captivating yarn about a unique, once-in-a-lifetime opportunity to acquire gold at an unbeatable price.
To add a layer of authenticity to their tale, they might incorporate elements of human drama such as a recent death or divorce, or even a significant institutional transaction. These details are intended to make their proposition appear more credible and appealing.
However, it’s crucial to understand that the pricing of precious metals like gold and silver is generally straightforward, governed by market forces rather than individual circumstances. Therefore, these narratives often serve as a smokescreen for dishonest deals. The stories, while intriguing, are usually a prelude to deceptive offers that don’t align with the true value of the commodity.
Certain dealers may attempt to entice you with an attractive discount offer, purportedly due to an order cancellation. They might present a scenario where they’ve been left with a surplus of gold and silver because of a cancelled order, and are now offering these precious metals at a reduced price. This proposition can seem appealing, especially to those looking for a bargain.
However, it’s important to scrutinize such offers critically. If the dealer is conducting business on a large scale, dealing with millions of dollars worth of transactions daily or weekly, the impact of a single cancelled order would be negligible. Therefore, the claim of being “stuck” with excess gold or silver due to a cancellation is unlikely to be valid in such circumstances.
In essence, the notion of a dealer offering significant discounts because of an order cancellation doesn’t stand up to scrutiny, particularly if the dealer operates a high-volume business. It’s more likely that such offers are a sales tactic designed to lure unsuspecting buyers into a less-than-favorable deal.
Some dealers may resort to using their inventory as a justification for specific behaviors or actions. However, it’s important to note that the majority of gold Individual Retirement Account (IRA) dealers do not operate from an inventory-based model.
Therefore, if a dealer presents an argument or explanation that revolves around their inventory, it’s advisable to approach it with skepticism. Such claims are likely to be unfounded, as they contradict the typical business practices of gold IRA dealers.
In essence, any excuse or reasoning that involves inventory should be treated with caution, as it’s likely not reflective of the actual situation. It’s crucial to be aware of this to avoid falling prey to potential misinformation or manipulation.
“Let Me Check the Vault”
When a dealer utters the phrase “Let me check the vault,” it’s advisable to view this as a warning sign. Typically, sales representatives do not have direct access to vaults from their sales floors, making this statement potentially misleading.
This phrase is often employed as a sales tactic to fabricate an illusion of exclusivity or a special deal. The dealer’s intention is to make you feel as though you’re about to receive an offer that’s not readily available to everyone.
In essence, if a dealer suggests checking the vault, it’s likely an attempt to create a false impression of a unique opportunity.
Universal Guaranteed Price Over Spot
While it’s true that various coins carry distinct prices above the spot price, you may encounter some dealers who assert that all of their coins are sold at a single price over spot. This universal guaranteed price over spot may seem appealing, but it’s crucial to inquire about the specific price over the spot for the coins or bullion bars you’re interested in purchasing. This ensures transparency and helps you make an informed decision.
Piggybacking on a Big Trade
Certain dealers may suggest that a significant trade is underway at the moment you’re looking to make a purchase, implying that this could result in more favorable pricing for you. However, it’s important to understand that prominent national dealers are consistently conducting high-volume transactions, which inherently enables them to procure coins or bullion at the most competitive prices. Therefore, the notion of piggybacking on a big trade for better pricing may not hold as much weight as it’s portrayed.
Price Protection Program
In the event a dealer promises to secure the market for an extended duration or asserts to compensate for any potential losses should the market decline, it’s probable that such a claim is untrue. It’s crucial to remember that no one can assure guaranteed profits. This so-called “Price Protection Program” may sound appealing, but it’s important to approach it with skepticism and understand that market fluctuations are a natural part of investing in coins or bullion.
Bait and Switch
In a scenario often referred to as “Bait and Switch,” a dealer may advertise gold and silver assets at prices lower than the current market rate on their website, or provide you with a quote for items they have no real intention of selling. This tactic is designed to attract your interest. Once they’ve caught your attention, they then subtly shift the discussion towards a different product. This strategy is typically used to steer customers towards higher-priced or higher-margin items.
“Must Buy Now”
Exercise caution if a dealer attempts to rush you into making a purchase, claiming that a unique offer is about to expire. This “Must Buy Now” tactic is often used to create a sense of urgency and pressure you into a hasty decision. It’s always advisable to take your time, thoroughly consider your options, and make an informed decision rather than succumbing to high-pressure sales tactics.
When you’re prepared to purchase your gold, a dealer might propose a lower spread on the asking price compared to other companies. This could be misleading and potentially a trap, as it could bind you to resell back to them, possibly at a price that is not in your favor. This “Low Spread” tactic is often used to create an illusion of a better deal, while potentially setting you up for a less beneficial resale arrangement.
When buying gold and silver, the reputation of the company you choose is critical. Avoid falling for the lies and pick a company you trust that provides value beyond merely being fractionally cheaper. One way to ensure honesty is by asking for big promises in writing, signed by upper management.
It’s also advisable to check online reviews and ratings from watchdog institutions. Companies that are truly compliant usually have positive reviews from customers and institutions alike. So, remember the old adage that if something is too good to be true, it isn’t.
Take your time. Before buying anything, talk to several companies, financial advisors,s and tax professionals. Click here to read our “Gold IRA Investing Guide.“