Gold IRA Scams: Red Flags Every Investor Should Watch

A buyback policy is not the same as a guaranteed resale price. Ask how the repurchase price is calculated and whether the company is obligated to buy the metals back.

Do not sign documents you do not understand. Consider consulting an independent financial or tax professional before making a substantial retirement investment.

Check Independent Consumer Resources

Several organizations provide information that can help investors investigate questionable businesses.

• Federal Trade Commission (FTC): Offers consumer guidance and accepts reports about deceptive business practices.
• U.S. Securities and Exchange Commission (SEC): Provides investor education and information about investment-related fraud.
• Financial Industry Regulatory Authority (FINRA): Offers investor resources and tools for checking certain financial professionals and firms.
• Better Business Bureau (BBB): Provides business profiles, complaint histories, and other consumer information. Its ratings are not government certifications or guarantees of legitimacy.

Not every precious metals dealer or self-directed IRA provider is regulated in the same way. Check the credentials and regulatory status applicable to each entity rather than assuming that one registration covers the entire transaction.

What to Do If You Suspect a Gold IRA Scam

If a company appears to have misled you, avoid sending additional money until you understand the situation.

Preserve contracts, account statements, advertisements, emails, text messages, and records of telephone conversations. Write down the names of representatives and the dates of important interactions.

Contact your IRA custodian directly using independently verified contact information. Ask for account records and clarification about any disputed transactions.

If you believe you have been defrauded, consider submitting a complaint to the FTC or contacting your state attorney general. Depending on the nature of the transaction, other regulators or law enforcement agencies may also be appropriate.

If the issue involves possible tax consequences, consult a qualified tax professional before attempting to withdraw, transfer, or liquidate IRA assets. An improperly handled transaction can create additional financial complications.