Investors in gold are encouraged to be as informed as possible about the market before acquiring assets and sourcing reputable traders should be a priority. Goldex advises buyers and sellers to thoroughly investigate their chosen trader and offers several tips for those who are new to the world of digital and physical gold bullion trading.
Which Gold Dealers Can I Trust?
Gold buyers are particularly vulnerable to underhanded business practices, according to a 2007 report by the Texas State Attorney General. Greg Abbott, the state’s Attorney General at the time, commissioned a review of gold traders. “Study the market carefully to avoid falling victim to high-pressure sales tactics,” Abbott warned. The study found that senior citizens were at a particularly high risk of falling for shady characters. Some had even been duped into paying three times the market value for allegedly “rare” gold coins, but the only thing “rare” about the coins was the use of the word.
With so many options, especially online, it is essential to check the reputation and standing of the platform or vendor, as well as exactly what you are buying.
These are some of the questions that need to be asked:
1. Am I buying actual physical gold, or a gold linked product such as an ETF, structured product or another derivative?
2. What is the quality and grade of the gold I am buying?
3. Is the trading process transparent, fair and recorded?
4. Are the fees and commissions transparent and fair?
5. Am I getting the best price?
6. Is the platform secure?
7. Does the platform adhere to the World Gold Council’s 7 Retail Gold Investment Principles?
8. Are my assets protected?
9. Is the gold I purchased sourced from reputable suppliers?
10. Is the platform compliant with all applicable laws and regulations?
Online platforms that can answer all these questions successfully are rare. Goldex not only provides the highest of standards but is at the forefront of bringing the gold marketplace to investors who demand such standards