Precious metal scams are on the rise, targeting investors with fake gold, bogus deals, and clever tricks. These schemes are widespread—in 2024, authorities reported over $126 million in losses from gold bar scams.* Scammers prey on the promise of safe, stable investments to steal life savings and leave victims empty-handed. Before you buy gold or silver, here’s what you need to know to protect yourself.
Common Precious Metal Scam Tactics
- Gold Courier Scam: Scammers impersonate government agents warning of fraud and tell victims to buy gold for protection. They send fake couriers to collect the gold—who disappear with it, often taking thousands of dollars.
- Counterfeit Gold Bars and Coins: Fraudsters sell gold-plated or tungsten-filled bars and coins made to look genuine. These fakes often come with forged certificates and realistic packaging to deceive buyers.
- Fake Online Dealers and Investment Sites: Scammers use bogus websites or marketplaces to sell precious metals, taking payment without delivering real products. Victims are left with worthless items or nothing at all.
- High-Pressure Gold IRA Sales: Cold callers pressure investors to roll over retirement accounts into expensive gold IRAs with misleading promises. These deals often include hidden fees and inflated prices.
- “Gold Dust” and Mining Schemes: Overseas scammers claim access to raw gold requiring upfront fees for processing or export. After payment, they disappear, leaving investors empty-handed.
How to Protect Yourself
- Buy from reputable dealers
Stick with established, licensed vendors who are transparent about pricing, authentication, and delivery. - Request documentation
Always ask for a certificate of authenticity and a full receipt. If they can’t provide one, walk away. - Avoid high-pressure tactics
Legitimate dealers won’t rush you or promise guaranteed returns. - Be wary of unsolicited offers
If it comes via social media, cold call, or email and sounds too good to be true—it probably is. - Do research
Check the company’s name on the Better Business Bureau (BBB) website or look up complaints through your state’s consumer protection agency.
What to Do If You Suspect a Scam
- Never send any money or personal information.
- Report the incident to the Federal Trade Commission (FTC) and your state’s attorney general.
- Contact FMFCU immediately if you think your accounts may be at risk.
*‘Gold Grifters’: Inside the growing scam using couriers to pick up gold bars from victims, ABC News.
Beware of Precious Metal Scams, District of Columbia Department of Insurance, Securities & Banking.
Precious Metal Frauds, Commodity Futures Trading Commission.