Over the past few years, a lot of people are beginning to see the importance of investing in precious metals. Aside from gold and silver, 7K Metals are also great investments that offer profitable deals to investors. Without the proper knowledge of this investment, you would wonder “is 7K Metals a scam?” and should not be considered a good investment? Knowing your way in precious metals investment is a must and 7K Metals is not a scam, rather, make sure you are investing with a trusted company to guide you with your investment. As a result, an increasing number of people are taking advantage of the benefits attached to it. One of the strongest pulls that investors in this sector have is the stability in value that it has to offer. Precious metals do not devalue over time, their value keeps appreciating.
Consequently, many companies with various investment plans and incentives have sprung up to woo would-be investors to invest in their companies. However, there is a mix of genuine and fraudulent companies vying for the money of interested investors. While some companies have earned a solid reputation, some others are still trying to make their mark.
In addition, because of the level of scams present in this industry and the need to help you invest with a reputable company, here is a guide on the best ways to avoid being scammed while investing in precious metals.
Ways to Avoid Precious Metals Investment Scam
The price of precious metals has been experiencing a bullish run in the market. As a result of this exponential price rise, a lot of players have keyed into this lucrative sector. With this boom, there are a lot of fraudsters trying to defraud potential investors of their hard-earned money. Here are some of the ways that you can use to identify and avoid them:
Be knowledgeable about the Market
Whenever you want to invest in any business, you must equip yourself with the basics of that business. When it comes to the precious metal industry, you need to equip yourself with areas like pricing, how to weigh them, and how they are uniquely designed.
Price: You need to know the spot price of these precious metals before you try to buy or sell them. This is important so that you do not get cheated in your deals. It will also help you to identify when you are getting offers that are too good to be true.
Weight: You should also understand how gold and other precious metals are weighed by jewelers. The internationally accepted measurement is in troy ounces. Whenever the price of gold is being discussed by investors and dealers, the reference for weight is in a troy ounce. This is different from the normal ounce measurement. If you need more explanation on troy ounce, you can read this article.
Design: In other to prevent fake gold coins from being sold, each of them comes with a unique design that makes them distinct. You must know how to identify these distinctive features in them to avoid being scammed with a fake coin.
Transact With Reputable Dealers Only
There are so many dealers and jewelers involved in the precious metal industry. One way to avoid falling into the hands of scammers is by identifying reputable dealers. Such dealers will have verifiable track records that you can use to evaluate them.
They must have been in the business for a considerable length of time. Scammers are there for the quick money and will therefore not remain on the scene for long or else their game will be exposed.
They should also have repeat customers. A dissatisfied customer will not go back to the same dealer to transact with them again. It is a good sign that the dealer is genuine and trustworthy.
You can also go online to verify the authenticity of the dealer. There are so many online forums that are about precious metals investment.
Deal With Big Lenders
As much as is possible, try and deal with big-time lenders. There are so many advantages attached to this, but the most important is that they are real. Becoming a big lender comes with a lot of things like reputation, longevity, customer satisfaction, and so on. All these factors point to one thing: authenticity.
Another advantage of dealing with big lenders is that there is always availability of products to cater for both small and large purchases. They also have a quick turnaround time in supplying the products. This is/may not be the case with small-time lenders. There may not be the availability of products during rush and their delivery time is slower. Most importantly, the possibility of encountering a scammer is greater amongst this level of dealers.
Demand for Documentation
This is especially important if you are dealing with a jeweler online. A genuine dealer should be able to provide a certification to prove their authenticity when it is demanded. You should then verify the authenticity of the document provided through an authority. Make sure the confirming authority is not a front operating under the jeweler.
Steer Clear of Rare Coins
One of the easiest means by which scammers can get at you is through the sale of supposedly rare coins. The reason it is so easy for them to succeed with this is that you have no reference to compare it with. They can easily spin any story about the rarity of the coin and why it is so valuable.
With that, they can collect a value that is 4 or 5 times higher than the actual value of the coin. Therefore, you should stick with the normal precious metals that you can easily verify their authenticity and value. When you are investing in precious metals, your interest should be on increasing the ounces you have and not on the rarity of the coins.
Do Not Invest Under Pressure
Whenever you are being pressured into investing in any business you are not conversant with, stop and take a break. The same is applicable in the precious metal industry. When such pressure comes from a supposed salesman or investment agent, do not rush into paying any money based on the information you get on the spot.
The tips outlined in this article will help you avoid investment scams. If you need recommendations on investments to try out, you can check here: https://www.forbes.com/sites/jrose/2021/01/08/the-7-best-investments-to-make-in-2021/?sh=16ad2738191b
Conclusion
Investing in precious metals is quite lucrative and a very good way of divesting your portfolio. However, because of the kind of money that is involved in this sector, there are so many fake dealers in it. You must follow due diligence before you entrust your money to anybody. There are many ways of avoiding these scammers, utilize them, and reduce the risk of falling into their hands.
