Beware of Scams and Shams During the Current Economic Uncertainty
Okay, everybody is worried right now about the state of our economy. And one thing you have to say about the current situation, bad as it is, is that those fears are based in reality. Small businesses are hurting. Some are closing, possibly for good. Individual investors have seen the value of their assets plummet – at least on paper. Kids who are graduating from college right now are having a terribly difficult time finding jobs. Plus, many of our institutions, ranging from universities to museums to theater companies, are wondering if they will ever bounce back.
And Just When Things Are Looking Bad . . .
Unscrupulous people are finding ways to make things even worse, by launching scams to take money away from people while they are scared. Some of those unscrupulous people are criminals. Others might not be outright crooks; they are just people who think this would be a good time to make money by exploiting people’s fears.
Here are some of the shady or downright dishonest scams and shams to be on the lookout for right now.
Companies that Exaggerate the Value of Collectibles
We saw one marketing pitch that tried to sell a collectible coin as a hedge against a coming economic “crisis.” We didn’t examine the coin to determine how much precious metal it contained, but we are willing to bet that this unscrupulous company was selling an overpriced coin that contained only a tiny amount of gold or silver. The fact is collectible or commemorative items are almost always unrealistically overpriced. If you get a pitch for one, be careful and consider passing it by.
A similar shady practice is to try to offer silver bullion at exaggerated prices, after implying that it is appreciating as quickly as gold or platinum bullion. The fact is, not all precious metals appreciate at the same rates. Be sure to check the London Fix trading prices we post on the Specialty Metals Smelters and Refiners home page daily to monitor where prices are going, and don’t pay big dollars for metals that are not appreciating.
Companies that Offer to Buy Gold and Silver Immediately for Cash
Okay, these companies might be dishonest, or they might not. But they are counting on the expectation that the gold they buy from you will go up dramatically in value. But let’s ask you a question. If the gold, platinum and other precious metals you own are going to go up dramatically in value, why shouldn’t you be the entity who profits from that increase? Why should you give away the possibility of making a nice return if prices rise? So unless you have a pressing need to raise money right now, you will probably be better advised to hold onto the metals you own until prices rise.
The Classic Scams, Purportedly from Overseas
You have seen scams like these over the years. You get an email from a foreign country that offers you a business opportunity that is literally “too good to be true.”
These scams seem to be ticking up in the current coronavirus crisis. One that we saw made a pitch that said, “My client is stranded in Singapore with $10 million worth of gold and he will give you $1 million if you agree to accept a shipment that contains it. He needs you because his last name is the same as yours.”
Well, forget about it. As the old saying goes, “A sucker is born every minute.” That might be true, but there is no reason that sucker has to be you!
Now Is the Time for Common Sense, Not Fear
Are you feeling anxious in the current economic climate? Of course you are feeling anxious, we all feel that way. But that is not an excuse for making unintelligent decisions or falling for scams.
If you have precious metals or precious metal scrap, now it the time for sound strategy and patience, not impulsive mistakes. We invite you to call our precious metal consultants today at 800-426-2344 to talk things over and formulate sound strategies for continuing to profit from your metal investments in the weeks, months and years to come.
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