Avoiding Scams When Buying Bullion Online

The ease of purchasing bullion online has gained substantial popularity. Despite the increase in popularity, there are associated risks, including fraudulent activities and counterfeit products. Therefore, you need to research extensively and verify the trustworthiness of dealers, as well as their safety measures, to obtain high-quality bullion at reasonable prices.

Common Types of Bullion Scams

There are different ways you can get scammed when buying bullion online. Being aware of the different tactics will ensure that you do not become a victim. Consider the different types of bullion scams below.

• Fake or Counterfeit Bullion: Gold can be made in duplicate or counterfeit form. Scammers often offer naive customers this product instead of the original. In most cases, the products appear authentic, but their interiors consist of low-cost metals. A thorough inspection of markings, along with serial numbers and authenticity certificates, should be conducted before making any purchase.
• Bait-and-Switch: The seller promotes premium bullion at reduced prices but delivers inferior bullion to the buyers. The buyer receives bullion with inferior purity levels or from a mint that lacks proper recognition. Check the seller's reputation and product information before making any purchase to prevent this issue.
• Non-Delivery Fraud: The seller accepts payment but fails to send the bullion to the customer. After receiving payment from customers, fraudulent dealers disappear, leaving the buyers without any product. Your purchase should be limited to established dealers.
• Overpricing and Hidden Fees: The cost of purchasing bullion increases when dealers either raise prices or add unexpected fees; people who are not cautious end up paying amounts much higher than the market value. Therefore, endeavour to compare prices with other sources before buying bullion online.
• Phishing and Identity Theft: Phishing is used to target individuals through emails and text messages.  Fraudsters often use other people's information to obtain confidential personal and financial information from people who do not know them. Before buying gold from online platforms, verify the website's security protocols by double-checking and examining the HTTPS encryption. Also, refuse to share sensitive information with unverified sellers.

Avoiding Scams When Buying Bullion Online

If you want to buy bullion online, be aware of potential scams that may occur during such transactions. Deceptive sellers make use of various tactics to deceive buyers, resulting in monetary losses. Several warning signs exist that buyers of bullion online should be aware of:

1. Prices That Are Significantly Lower Than the Market Rate

The likelihood of a scam increases when a seller attempts to sell bullion at prices that are significantly lower than the market rate. Dealers that follow legal principles often sell their gold at prices based on the current spot market rates for gold or silver. In some cases, additional costs may apply.

Unusually low prices signal that the items contain counterfeits or impurities. Therefore, before buying bullion from a dealer, check and compare the pricing with other trustworthy dealers. By doing this, you ensure an accurate assessment.

2. Poor Website Design, Missing Contact Details, or Lack of Security Features (HTTPS)

You can know a reputable dealer by the quality of their website design. Genuine bullion dealers often invest in a great website. In most cases, you will find the content on their website modern, the links will be operational, and the spelling is always correct. These are indicators that demonstrate the level of professionalism of a bullion dealer.

Professional bullion dealers use websites that contain complete contact information, including business phone numbers and physical address locations. You must verify that websites display “HTTPS” in their URLs because it provides both secure transactions and protection for payment details.

3. No Customer Reviews or a History of Negative Reviews

Research customer feedback before buying bullion online. A reliable dealer always receives positive feedback from past customers on third-party review websites. Avoid doing business with bullion dealers who lack customer reviews.

Most often, a lack of review signals an untrustworthy operation, consistent reports of poor customer experiences, delayed shipping, and potentially fake products. Check the reputation of suppliers before buying.

4. Pressure Sales Tactics and Limited-Time Offers That Seem Too Good to Be True

When scammers aim to make people make hasty purchasing decisions, they often declare limited-time, exclusive deals that will soon expire. These sellers force customers to make quick buying decisions without conducting proper verification of the product. 

Know that reputable bullion dealers maintain transparent pricing. As a result, they allow customers to buy with confidence and according to their preferences.

5. Lack of Proper Authentication or Certification for Bullion

Bullion products that lack proper certification from a trusted source should be considered unauthentic. Dealers must disclose weight specifications, along with the purity level and source of their products.

It is best to avoid purchasing from sellers who fail to prove authenticity or decline to provide certification documentation. Purchase your bullion exclusively from dealers who have a proven track record in the market.

Steps to Take if You Get Scammed

If you realise you have been scammed while buying bullion online, take immediate action to minimise losses.

• Contact the Seller and Request a Resolution: Contact the Seller immediately. Explain the issue and request a refund or replacement. Keep records of all communication. If they refuse to help, proceed with further action.
• File a Dispute with Your Payment Provider: Contact your bank or credit card company for assistance. Request a chargeback or dispute the transaction. Provide evidence, such as receipts and messages. Some payment providers offer fraud protection.
• Report the Scam to Authorities: File a complaint with the relevant authority close to you. Provide all scam details, including seller information. Reporting helps authorities track fraudsters.
• Share Your Experience on Review Platforms: Post warnings on forums and review sites. Help others avoid similar scams. Ensure that you are honest about your claim and share it in detail.
• Learn and Stay Vigilant: Educate yourself about scam tactics. Only buy from reputable dealers. Always verify authenticity before purchasing.

Conclusion

Research is essential before making an online bullion purchase to prevent fraudulent transactions. Trust dealers who possess both positive client feedback and valid credentials when selecting your bullion online. Always exercise caution when encountering offers that seem too good to be accurate and have unusually low prices. The rule is that anything appearing too good to be true is most likely a scam. Stay informed and invest wisely with Perth Bullion Exchange.