Should you Buy Gold? It depends, say Experts
Recently, precious metals have become a popular target for smaller investors; but should you buy gold? And if so, how should you go about it? Unfortunately, the rising demand for rare metals has meant big business for some unscrupulous dealers. Before you trade your paper currency for bullion or rare coins, find out what experts are saying.
A Tale of Two Dealers
Recently, Santa Monica prosecutors brought a lawsuit against Goldline for allegedly deceiving investors. According to the suit, when customers approached the precious metals dealer looking for bullion coins, Goldline representatives misled them into paying more for so-called collectible coins that offered no extra value. Ultimately, the lawsuit was settled, with Goldline agreeing to pay more than $4 million back to past customers.
Although it hasn’t faced similar allegations, APMEX, a dealer based in Oklahoma, has received some negative reviews from former customers. Recently, we did an interview with APMEX.com Chief Executive Officer Michael Haynes, where he outlined the company’s commitment to customer satisfaction. Haynes said most negative online APMEX reviews aren’t relevant because they are several years old. Additionally, he stated that his company strives to work closely with investors to ensure that they understand the terms of each sale.
Should I Buy Gold?
According to experts, precious metals can be a smart investment for those looking to diversify their portfolios. That said, many are now promoting precious metals as a way to insure against potential financial collapse. Recently, conservative personalities, such as Porter Stansberry and Glenn Beck, were accused of using fear to push buyers into buying bullion and other precious metals to safeguard against inflation.
According to the FTC, there’s no basis to this; and, recently, in his annual letter issued to Berkshire Hathaway shareholders, American business magnate Warren Buffett suggested that investing in gold wasn’t necessarily a wise idea compared to investing in corporate entities, which have the ability to make money and grow.
With that said, for certain investors, investing in precious metals may make sense as long as they are doing so for the right reasons. Before you buy gold, be wary; some companies seek to profit off fear and ignorance. Play it safe and read the FTC’s tips on how to buy gold prior to contacting any dealer, or you may end up losing money in the long-run.