When considering gold as an IRA investment, a priority as an investor is to ensure the firm they work with is trusted and reputable and only engages in the highest standard with their business practices guaranteeing the client’s interest is of primary consideration.
Investors are wise to research, including checking professional reviews like this one at https://www.bondsonline.com/oxford-gold-group-review-are-they-a-scam/, offering details on Oxford Gold Group.
Things to consider with this company is that it’s a relatively new firm, albeit the founders themselves offer roughly two decades of experience in the industry. The overall inclination of the company is that it’s a firm that will not promise what it can’t deliver.
The leaders aim to present a very customer-oriented business putting their client’s interests as a priority, legitimate.
Professional reviews like this, along with customer testimonials and ratings on authoritative sites, will give a client the details to recognize a legitimate company like Oxford Gold Group from scam businesses. How does an investor know when they’ve come in contact with a scam? Let’s look at some red flags.
How To Find A Legitimate Gold Firm And Avoid Scams
Oxford Gold Group ensures its clients are educated and informed before committing to gold investments, particularly relating to gold IRAs. Not all gold firms are as diligent with their customers, with some blatantly scamming investors. How can you avoid falling into gold IRA scam traps?
Reading professional reviewers’ assessments, checking previous and current client testimonials, and looking businesses up on authoritative sites for ratings and complaints of fraud and scams are preliminary steps to take before choosing a firm.
It’s also wise to become familiar with how scammers are exploiting investors so you can avoid the behavior. Learn tips for avoiding gold IRA scams at https://www.ibrinfo.org/tips-to-avoid-gold-ira-scams/ and then look at a few of these common schemes.
- Precious metals that are not IRA-approved by the IRS
Specific precious metals are approved by the IRS to be included in IRAs. Gold, platinum, palladium, and silver are of particular purity and fineness. For the investor not versed in the IRS regulations, it would be easy to buy what the IRS would recognize as collectibles and not eligible for IRA investing.
A non-legitimate gold IRA firm will push rare collectible coins, eventually leading to the retiree having tax repercussions for the entire investment value along with any interest and penalties applicable.
The scammer’s goal is to convince you of the value of a rare collectible so you’re confident of the hefty price point. As an investor planning for retirement, your focus should be the weight and the “spot price.” Anyone describing a product as rare or collectible should be avoided.
- The gold IRA home storage scheme
These schemes are growing in prevalence the higher gold prices go. The gist of the scam is that a firm will contact the gold IRA customer with the agenda of setting up the account for them.
The representative will advise the client that storing the gold will be considerably more budget-friendly if they do so at home instead of using a facility. Some will even offer free shipping.
A primary red flag that the firm is not working on IRS terms is that the IRS disallows home storage for gold IRA investments.
Plus, a reputed dealer will entice a customer with a few free precious metal coins if you opt for home storage. But as a basic rule, any company that pressures a client, prodding for a fast response or avoiding requests for references or testimonials is likely not legitimate.
- False investment schemes
Investors need to be wary of gold IRA firms where the company responsible for making the gold purchase and then shipping it to the IRS-approved depository for storing doesn’t actually follow through with their part of the transaction.
When dealing with custodial services, these entities need to be approved by the IRS. Sometimes, the companies will also serve in the precious metal dealer capacity meaning they can also make the purchase of the products. In other cases, however, the dealer is a separate company.
Some scams in this scenario involve the company responsible for purchasing and shipping gold to the depository, instead, buying “gold futures contracts” with the client’s funds. These are exceptionally risky, with the potential for considerable loss.
But it doesn’t end with that loss; the firm will reach out to convince you that you should put up more money to recover, perhaps borrowing the funds, with a promise that prices are on the verge of soaring, creating a singular opportunity to access a fortune.
No such guarantees are valid since gold prices are extremely volatile. The best way to recognize this scheme is at the first indication that your gold was not sent to storage; instead, someone else made a different decision for you.
When working with a legitimate company like Oxford Gold Group, an investor will be presented with a fully transparent contract. That means all fees plus the terms and conditions will be stated clearly and explicitly explained before the client agrees to do business with the firm.
A reputed, trusted company won’t make outlandish claims or promises. The aim is to be realistic in the potential for profitability, with the acknowledgment that gold IRA investments and the finance world as a whole make no guarantees.
Those who do, have a personal agenda. These firms are not looking for the best interest of the client. Click for details on gold IRA scams to avoid.
For anyone who feels they need help to understand the language of a contract thoroughly, it’s wise to bring someone with the capacity to decipher the terminology. A financial counselor or an advisor can detect a scam readily.
If you feel you’ve been victimized, contact your local state’s attorney general or reach out to the FBI. Either of these bodies will formally launch an investigation concerning the fraudulent activity.
Refrain from letting these behaviors prevent a wise retirement strategy-just; remain attentive, research the firms, and report unsavory behavior.