Gold has been the most popular and the most ancient investment commodity. Even before currency was introduced in history, gold was stored and was considered as the greatest repaying investment. The truth has been the opposite of this myth, though. If one studies the history of gold investment, it would become quite clear that gold appears to be profitable, but it is not so.
In these times, when there are fewer buyers as compared to the sellers, and so, bullion does not offer so much hope. Moreover, it is a non-profit investment commodity in the sense that it does not provide a regular inflow of cash, even when its price is rising. One has to sell it in order to reap the profit.
It is common for people to be beguiled by fraudulent persons or companies, who devise new ways to steal money from them. Owing to the declining value of dollar, gold prices have increased sharply. There has been a record increase in the demand of physical gold in the past few years. Many gold mining companies, brokers, and investors having huge savings in gold are converting it into cash now due to the economic crisis taking its toll on everyone.
Typical scams involved in gold investment are the discount prices offered by persons/companies/shops selling rare or collectible coins online or in live auctions, over pricing of bullion by advertising shortage of gold coins in the global market, and offering unallocated gold storage accounts by private individuals or companies.
Simple people are befooled by selling inferior quality of bullion by those involved in the scam business. First time gold investors are an easy target of such scams where ordinary gold coins are sold at high prices by declaring them 'rare' or 'collectible'. It is imperative for all gold investors to check out the spot gold price online or in newspapers before buying anything in gold.
Gold mining companies and other individuals who want to sell their bullion now when the gold price is sky-high are using electronic, and print media to advertise their scams. They constantly propagate the issue of the declining solid reserves of gold in the global market, and urge everyone to buy now, because the prices will increase with every passing day. They have rather made an artificial demand-market in order to reap maximum profit.
Some individuals and persons are offering unallocated gold accounts or lockers to bullion investors, which are neither supported by any financial or government institution.
Gold investors fall prey to such scams either on phone, emails, websites, advertisement etc. the State has warned gold investors against such scams, which have already deprived thousands of people in the USA alone. People are advised to check the authenticity of the individuals/companies from whom they are buying gold. It takes years to save money and invest in gold or any other kind of profitable commodity. One should keep a vigilant eye on the latest scams, and try to stay away from them.
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