Gold IRA Scams And Red Flags

Red Flags

• Urgency. "Act now" deadlines on retirement money.
• Guaranteed returns or protection. No one can guarantee either.
• Fear marketing. Claims that the economy or dollar is about to collapse.
• Rare or collectible coins pushed at large markups. Many don't qualify. See IRS rules.
• No written fee schedule. Or fees that change between calls.
• Encouraging you to hold metals at home in an IRA. See home storage.
• Unsolicited calls or pressure to move everything at once.

How To Protect Yourself

1. Get fees, spreads, and buyback terms in writing.
2. Confirm the custodian and depository independently.
3. Search complaint records with your state attorney general and consumer protection office, and the FTC.
4. Get quotes from at least two companies.
5. Take your time; no legitimate offer expires in a day.

If Something Goes Wrong

Report suspected fraud to your state attorney general, the FTC, and the CFTC or SEC as appropriate. A securities attorney or tax professional can advise on your options.

Common Scam Patterns

• Bait and switch with collectibles. You are shown a bullion price, then steered toward rare coins at high markups that may not even qualify.
• False 'IRS approved' claims. The IRS does not approve dealers.
• Home-storage IRA pitches. These use an LLC structure that has led to taxable distributions in some cases. See home storage.
• Impersonating a custodian. A dealer says it will 'handle everything' without clearly identifying the custodian.
• Pressure to roll over everything. A legitimate plan rarely requires moving your whole balance.

How To Verify A Company

1. Search your state attorney general's office and consumer protection agency for complaints.
2. Read reviews from several independent sources, and read the negative ones.
3. Look up the custodian and depository yourself and confirm they work with the dealer.
4. Ask for the fee schedule and quote in writing and read it carefully.
5. Call the custodian directly to confirm the account setup.

If You Think You Were Defrauded

• Stop sending money and keep every email, statement, and recording.
• Report to your state attorney general and to the FTC at reportfraud.ftc.gov.
• Contact your custodian to ask about holds or reversals.
• Consider speaking with a securities attorney and a tax professional.

Protecting Older Family Members

Retirees are frequent targets of high-pressure sales. If you help a parent or relative with finances, ask them to share any quote before they sign, and offer to sit in on calls. A good company will not mind.

Sources And Further Reading

• FINRA: Self-Directed IRAs and the Risk of Fraud