Silver is a precious metal that has been used in currency, jewelry and other decorative items for thousands of years. It is highly regarded as the most durable of all precious metals. However, counterfeit silver is a serious problem for those looking to invest in bullion and coins. To help safeguard against this risk, we share tips for determining whether or not you are buying authentic silver.
The most common way that investors are scammed when investing in silver is through unauthorized dealers. Unauthorized dealers operate outside the oversight of regulatory authorities and are at high risk of fraudulent practices such as Ponzi schemes. Investors can protect themselves from these types of scams by doing their research on investment clubs, verifying licensing and registration, and ensuring the authenticity of bullion. Additionally, they should work with reputable silver dealers, seek professional advice, and remain skeptical of promises of high returns.
Investors should also be on the lookout for inflated prices, high-pressure sales techniques, and storage facility fees when investing in precious metals. Often, these fees are applied to the purchase price and can significantly reduce the overall return on an investment. Additionally, scammers may sell counterfeit or low-quality bullion at inflated prices. This can lead to significant financial losses for investors.
Another common scam in the precious metals industry involves false advertising and misleading claims. These tactics can include generating a sense of urgency, making exaggerated fears, or dangling the promise of wealth to persuade potential customers. Additionally, scammers may misrepresent storage facilities or custodial services and lead investors to believe their metals are stored securely when they are not.
The CFTC has released several resources to help consumers spot and avoid these types of scams. It has published a list of questions to ask prospective buyers and a one-page flier, Lies Versus Facts: Gold and Silver IRA Scams, that highlights some of the most common lies that scam dealers tell.
Identifying real silver can be challenging for novice investors. However, there are a few simple steps that can be taken to ensure that you’re getting the best value for your money. For example, investors can test the metal with a magnet to determine its purity and authenticity. Real silver will not react strongly to the magnet, while fake metal will. Additionally, consumers can examine a piece of silver to see if it has patina, a dark layer that develops over time.
If you’re interested in investing in silver in Virginia Beach, contact Freedom Gold USA today. As one of America’s reputable precious metal merchant, we have the expertise necessary to ensure that you are purchasing genuine silver. We can also assist you with storing your bullion safely and securely.
