In investment matters, it is better to leave emotions aside. If you buy or sell gold, do it for reasons like you’ve decided to change your asset composition, your investment objectives have changed, or you simply need the money.
But avoid selling or buying because you are afraid or because you are optimistic and confident . As Paul Dykewicz points out:
“That is not investing; is to bet. Emotions have caused investors to lose huge amounts of money. So you better not fall prey to fear or greed when making your investment decisions . “
Frauds exist because there are greedy people. Instead of offering a valuable service and quality products that meet the legitimate needs of investors, they try to deceive investors and deprive them of the fruits of their labor.
So, when in doubt, it is better to give up a supposedly advantageous operation than to regret it later . All you need is a little common sense, prudence and knowing that if you are offered gold well below its price, surely there is something suspicious.
Store Your Gold Where You Bought It
Leaving the gold that has been purchased in the custody of the same merchant who sold it to you is a dangerous mistake that any customer should avoid.
As explained from Townhall Finance, when you buy precious metals from a dealer, it is preferable to take them and find another place of custody or leave it deposited in a specialized company with a good reputation and adequate facilities.
From Townhall Finance they remember the case of the International Bullion Exchange, a company founded in Florida in 1979, four years after the possession of gold in private hands in the US became legal again.
The founders were the Alderice brothers, who promised their customers significant discounts if they did not immediately take the gold purchased. The result was that in 1983 the company declared bankruptcy and when the offices were searched the company’s gold bars were found to be painted pieces of wood. The fraud rose to 75 million euros, from more than 23,000 customers.
Not Knowing What You Are Doing
If you buy gold for the right reasons, there is no bad price or bad time. However, you need to know what you are doing and why before you do it .
Not all dealers take the time to identify the needs and objectives of clients who want to acquire precious metals, in order to satisfy them. But they should.
For this reason, the client must be aware that it is about his money, his investment and his objectives: you have to worry about understanding what you are doing, resort to professionals who care about the client and not continue if there are doubts .