Gold is a hot investment, but with that comes troubled waters for investors. Many people are jumping into the gold market for the first time and this means scams are running wild. Before buying any gold item, make sure the dealer is a trusted, respected dealer. This will not offer 100% protection, but should significantly lower the chances of being taken.

Things You Will Need

Time and education.

Step 1

Finding a gold dealer begins with a random act. Either searching Google or the yellow pages, most people find a gold dealer with a random search. This is fine, but before jumping on a dealer, make a list of those random gold dealers and begin researching them all.

Step 2

Browse the name of each dealer in Google and look for reviews. If nothing comes up, call the dealer and ask specific questions, such as how much their premiums are, where the gold comes from, how long have they been dealing gold. Also, ask some questions you already know the answer to, such as the spot price of gold or premiums of American Gold Eagle. Compare their answer to what you already know

Step 3

After picking a dealer, if you have a gold item that you know everything about, value, gold purity, history etc. Take it to the dealer. Have them look it over and see what they say. If their comments are questionable turn around and walk out. Some may say this is a dirty trick, but gold is a big investment and investors must protect themselves

Step 4

Talk to those that are currently invested in gold. It is likely that a friend, neighbor, or family member has invested in gold. Talk to them and see where they purchased gold.

Step 5

  1. Stick with the basic gold bullion coins. For those just starting out, keep to the American Gold Eagle and purchase it from the US Mint or local bank. This should help protect from getting scammed, but watch those premium prices closely.
Always approach any gold dealer with caution and an open mind.

Tips & Warnings

Remember the gold business is full of fakes and frauds.