LOS ANGELES, Calif. – With gold taking an appropriate place among the financial planning of any prudent person preparing for collapse, many people are drawn to the concept of a gold IRA, a retirement fund consisting of physical gold instead of investments in stocks or bonds.
Unfortunately for many people, lots of companies mislead customers into thinking they are buying or investing in physical gold, when they are not.
And while this is not an endorsement of gold IRAs or Augusta Precious Metals, we thought the company’s advice on spotting scams was worth sharing.
“Unfortunately, some companies in our industry try to take advantage of consumers,” Isaac Nuriani, Augusta president and CEO, explained. “There is no doubt that self-directed IRAs consisting of physical gold and silver are excellent tools to stabilize portfolios. However, some companies use that fact in dishonest ways.”
The Nuriani family has been in the gold and silver business for more than 40 years, and Augusta Precious Metals has served retirement investors with gold and silver IRAs since 2012.
The company claims a Better Business Bureau A+ rating and a Business Consumer Alliance AAA rating.
Yet not everyone thinks Augusta Precious Metals is made up of angels, so its response is interesting.
“We’ve actually had some disreputable industry players attempt to suggest that Augusta Precious Metals conducts gold IRA scams,” Nuriani said. “It’s one of the reasons we released this list of ways to detect gold IRA scams.”
IRA Investors Can Avoid Scams by Using Common Sense
“It’s a lot like determining whether email is real or spam,” Nuriani explained. “If something doesn’t seem right, it probably isn’t.”
The following is the list of gold IRA scam tips released by the company:
Scam Example #1: Misrepresentation of Physical Gold or Silver IRAs
In this scam, the investment company provides confusing information leading an investor to believe they are purchasing physical precious metals, when they really are purchasing gold certificates or stock. To avoid this scam, ask questions about the form of the actual investment. Read contracts before signing, and check the company’s reputation through reliable sources.
Scam Example #2: The Right to See Your Gold
Some companies run a scam in which you purchase metals, but you have no real access to them. To uncover this scam, insist on written documentation from your IRA custodian, verifying you have the right to arrange, see and retrieve your metals from the depository where your gold will be held.
Scam Example #3: Un-backed Promises
Some companies will promise a high return, access to metals, and other benefits they cannot deliver. As with any investment, returns can’t be guaranteed and it’s possible investors will lose money. To avoid this gold IRA scam, get advice from your personal legal and financial advisers.
Overall Principles to Avoid Gold IRA Scams
In general, Augusta recommends that consumers follow these guidelines to avoid precious metals IRA investment scams:
- Don’t be afraid to ask hard questions about any gold IRA you are considering.
- Ask for everything in writing.
- Consult with your own legal and financial advisers before signing or purchasing anything.
- Insist on clear written descriptions of any gold IRA documents you are signing or products you are purchasing.
- Confirm conditions of your gold IRA with your new custodian before opening a new gold IRA account.
- Carefully research the depository where your precious metals IRA will be stored and verify your right to see and hold the gold and silver you have purchased.
- Read online and talk with friends and family to understand the unique qualities of investment in a physical gold and silver IRA.
- Carefully vet your gold IRA provider by reading consumer reviews to ensure its customers have received excellent service.
Nuriani suggests transparency is the most important principle to look for in a gold IRA provider. He emphasizes there are plenty of companies that can be trusted and are not afraid to prove it.
Learn more about the Gold IRA at Gold IRA Frequently Asked Questions.
Editor’s Note: The staff of Paratus Business News does not claim to be financial experts. Make all investments using your own research from real financial professionals.