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How to Avoid Falling Prey to This Common Gold Bar Scam

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How to Avoid Falling Prey to This Common Gold Bar Scam

These days you must be especially prudent, as it seems like there’s a new scam around every corner. Scams are becoming more sophisticated and can even trick folks that are typically skeptical by nature. Personally, whenever I receive a phone call, text or email from one of the companies I regularly do business with, I assume that it’s a scam until I go straight to the source for confirmation.  

Recently, we received a phone call from an individual that reminded us of a scam we occasionally see and wanted to alert our readers of.

This scam involves the alleged inheritance of a large number of kilo gold bars. The individual that supposedly received the inheritance is a female located overseas. More times than not, the gold bars are supposedly being held in a depository somewhere in Europe or Africa awaiting transfer to the states.container ship import

The demographics of the individual calling us is 9 times out of 10 a middle-aged or older single male who is calling on behalf of their “fiancé.” The fiancé is always located overseas and is usually someone that they have developed an online relationship with over the months. In fact, in most cases, the caller has never met this individual in person or spoken over the phone. In other words, all communications have been through an online chat or via email. There are usually multiple reasons given why these individuals have never spoken over the phone, had a video chat, or met in person, including, but not limited to, technology or alleged passport issues.

In most cases, when you transfer gold bars into the US from outside the country, import or custom fees apply. As you can imagine, the fees associated with transferring hundreds of kilos of gold bars are substantial. Of course, in all cases the individual living overseas doesn’t have the money to pay the custom fees and asks their U.S. based fiancé to help fund the costs. They also ask him to call coin dealers, gold dealers and refiners to arrange to sell the gold bars, which adds legitimacy to the scam.

If you happen to find yourself in a situation where you have met someone online, develop an online relationship and then are asked to fund the upfront expenses to transport the gold bars to the US, run – don’t walk away.nope dont like that gif

There’s a 99% chance that this is a scam and you could find yourself out of pocket tens of thousands of dollars with nothing to show for your efforts except an empty bank account and a broken heart. Another telltale sign it’s a scam is if the individual you’ve been communicating with asks you to transfer the funds via Western Union, which usually can’t be tracked.

don't walk, run

A good rule of thumb is to only deal with individuals or companies that have a long and established track record and can be vetted. The value of precious metals is too substantial to make a costly mistake. And, as always, if an opportunity sounds too good to be true, it probably is.

We hope that none of our readers ever finds themselves in this type of situation, but if this tip of the week prevents one person from making this costly mistake, it will be well worth it.

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Tony Davis
Tony Davis is the owner of Atlanta Gold & Coin Buyers, a full service Atlanta based coin and bullion dealer specializing in buying, selling and appraising coins and coin collections of all types and sizes. Tony frequently writes on various economic and numismatic related topics affecting the coin and bullion markets and has been published on some of the industry’s leading websites, including Coin Week, the American Numismatic Association, Coin Collector, Coinflation, and Coin Auctions Help, just to name a few. Visit Atlanta Gold & Coin’s website at atlantagoldandcoin.com to obtain additional information on the products, services and educational resources offered by his company. Tony can be reached at sales@atlantagoldandcoin.com or at 404-236-9744

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