The 7 Signs of Investment Scams You Must Know
- Avoid sharing your number to learn more about investment ventures if there is limited information on a website.
- No investment is 100% guaranteed to return profits.
- Always check a company’s website for reviews, testimonials and about us page to see if the company is legit.
- Research companies’ financial information such as: company number, tax registration details, financial regulation.
- Don't fall for scammers that attempt to make you switch to a rarer coin that costs more than your intended purchase.
- Avoid website scammers that say they will buy your gold under the spot price of gold.
- Always know how to receive your funds after transacting your precious metals.
Don't Share Your Phone Number
If you’re looking for a good investment it usually begins with you researching online for a reparable dealer. In a scenario you come across a website and there is limited information on the website you should avoid sharing your number or booking a free consultation.
No Investment Is 100% Guaranteed
At Chards we will never say if your purchase said coin or bar you are guaranteed to make a profit or huge return in the future. This is because of the nature of the precious metals market as prices are affected by more than several factors in the world.
If you come across a coin dealer or consulting investment company saying that you are guaranteed to make a profit, STOP because there is no such thing in the financial markets.
Due Dilligence Checks
Before even opening a coin dealers’ website we recommend that you perform some due diligence checks by looking at Google reviews and review platforms such as Trustpilot. At Chards we have over 58 years of experience and have over 2000+ 5 stars reviews on Trustpilot!
Secondly, at Chards we offer users to communicate to our excellent customer service team or to chat to our revamped virtual assistant called Ruby that will help you navigate to the answers you require in just a matter of minutes.
Check Companies Financial Information
During your due diligence checks it's also integral to check a coin dealers or investment consulting business financial information which is stored online. The important information we recommend you find is the company number, tax registration details and financial regulation. A good starting point would be to conduct some research on Company house which is found on the GOV.UK website.
Bait-and-Switch Gold Fraud
One of the most common investment scams is when customers are attracted by advertisements for products at a low price, then the product is not available. The scammer then promotes a more expensive substitute product saying things such as ‘rare coin’ and will pressure you into buying the item without you having time to check other reputable coin dealers.
Buying Gold Under the Spot Price
Another common scam we have found is when scammers promote to sell you precious metals for an absurd amount under the spot price. Avoid this as why would anyone want to sell you precious metals for a large amount under the spot price when they could sell it for more. To learn more about the spot price you can read our blog about The London Gold Fix that explains how the price is set every day.
Plan Your Escape Routes
A problem we have seen is people can rush into buying precious metals without conducting enough research about a business. The issue with this is a scammer could take your precious metal and have no way for you to receive your money for the products on their website. Common places to find about receiving your funds would be on website pages such as selling, terms of sale, and FAQ's.
Need a Coin Dealer That You Trust?
The year of 2018 marked the final year of the competiiton for UK's bullion dealer of the year by bullion.directory. In a hotly contested competition which saw over 140 British bullion dealers battle for the title, Chard secured 29.1% of the final vote which featured two of the industry's giants as well as two smaller family run businesses to be voted the 2018 UK Bullion Dealer of the Year. The rivalry between finalists was fierce, as the award was seen as the most prestigious award in the trade.
This guide and its content is copyright of Chard (1964) Ltd - © Chard (1964) Ltd 2023. All rights reserved. Any redistribution or reproduction of part or all of the contents in any form is prohibited.
We are not financial advisers and we would always recommend that you consult with one prior to making any investment decision.