Most precious-metals dealers are honest businesses. But the same emotions that make sound money appealing — worry about the dollar, a desire to protect a lifetime of savings — are exactly what a high-pressure operator tries to exploit. The good news is that the warning signs are consistent and easy to learn. A patient, informed saver is a hard target.
The 'free silver' bait-and-switch
Be wary of large 'free' or 'bonus' silver promotions tied to a big purchase. The cost of those bonus metals is frequently buried in inflated markups on the coins you actually buy. A genuine offer is transparent about pricing; a bait offer leans on the word 'free' to discourage you from asking what the spread really is.
The numismatic upsell
A common and costly tactic is steering buyers away from straightforward bullion and into 'rare,' 'collectible,' or 'numismatic' coins carrying markups far above their metal value. Many such coins are not even IRS-eligible for an IRA. For a retirement account, the goal is approved bullion priced close to the metal's spot value — not collectibles sold on a story.
Red flags, plainly stated
- High-pressure urgency — 'this price is only good today,' fear-driven sales scripts, or pushback when you say you want to think it over
- A dealer who will not put the full fee schedule and per-coin pricing in writing
- Heavy emphasis on collectible or 'proof' coins over standard bullion
- Promises of guaranteed returns — no honest dealer can promise what gold will do
- No verifiable BBB profile, no clear physical address, or a brand-new company history with no track record
- Reluctance to name the custodian and depository they use
How to protect yourself
- Verify the company independently — check its BBB rating and accreditation, look up its history, and confirm its depository and custodian partners.
- Insist on the complete fee schedule and per-coin pricing in writing before you commit.
- Stick to IRS-approved bullion for an IRA unless you have a specific, well-understood reason not to.
- Never let urgency make the decision. A legitimate opportunity is still there tomorrow.