5 Gold Scams Every American Should Know About, And How To Spot Them

In the last two years, FBI Boston documented over 100 instances of a courier being used to pick up illicit cash or gold bars, with financial losses totaling over $26 Million, and around 98% of these losses were reported by individuals over the age of 60.

According to Sam Bourgi, Senior Analyst at InvestorsObserver, as AI is easily accessible to everyone, financial scams are getting harder to spot and easier to commit, from generating websites to creating personal messages in seconds. He has identified five key gold scams that investors, especially seniors, should watch for amid booming gold prices.

By Investing a Little, You Might Be Losing a Lot More

It starts normally, an investor buys a small amount of gold at a regular price, from an ad in the paper. This isn’t necessarily a black-and-white scam. Real gold is sold at or slightly below the spot price, then the investor is repeatedly pressured to buy more expensive gold at heavily marked-up prices.

“This is not a con as we understand it, however, when they are selling generational wealth in the ad, for elderly people, it sounds like a good idea. Chances are, they do not know the real prices, not only in gold value, but things like dealer costs. And by constantly getting pressured with calls, they easily spend much more than they should, leaving them high and dry in the end,” says Bourgi.

Social Media Shopping

Social Media is now not only meant for sharing memories or chatting with friends, but for shopping as well. It starts with a fake store, using a real store’s name, advertising gold or silver jewelry, with prices that, for some, would raise red flags, but to those less experienced, it would easily catch attention.

The following steps are simple: advertise a good price and get attention, emphasize that the store is closed today, but you can reserve the jewelry by making a deposit, and get the money.

According to Bourgi, people should never trust online shops that advertise surprisingly good prices, but really don’t want consumers to come and see the jewelry for themselves.

“Having the right knowledge of Generative AI allows you to makeshift an online store with images in several minutes. What scammers do is take a real store’s name, even pictures, and play the persuasion game. The thing is, if the next day you go pick up the jewelry, you would find yourself at a fake address or some random back alley.”

Unreliable Payment Methods

One thing that should immediately raise red flags if people are investing in precious metals is the way the seller is requesting payment.

Chances are, if the sellers do not accept credit cards, any bank involvement, this is a sign of a scam. A legitimate seller should not be against using traceable, secure payment methods that offer buyer protection.

“Wire transfers are irreversible or hard to trace. No legitimate seller would be against bank involvement. If they are, verify everything they are telling you, through official websites or sources,” notes Bourgi.

Bogus Investment Platforms

If someone decides to buy gold-backed tokens on an investment platform, it is crucial to check if it is real and credible. There have been instances where people invested large sums in gold through investment websites, which increased in value quickly. However, when trying to withdraw, mysterious taxes appeared, and funds got frozen.

“In this case, the money got into scammers’ pockets the second it left your bank. And this is money you won't get back. It is pointless to pay the mysterious taxes, as your funds are locked inside a fake platform. If it is not a popular website, check reviews, check registration,” explains Bourgi.

Recovery Scams

There are cases when people get scammed twice. First, someone ends up buying fake precious metals and loses a considerable amount of money. Assuming it was an expensive buy, scammers sell the buyer's personal information.

When the buyer realizes there was a scam, a person claiming to be a lawyer or a government official reaches out and offers help.

“Never trust anyone who claims to be a government official or someone else whom you cannot verify from trusted sources. Especially if they ask you to make payments up front. You lost money when you both bought gold, it happens, but don't make the same mistake twice,” says Bourgi. “Remember, no one will ask you for your bank details and important information through the phone. Check them online, call the bank, but do not trust anyone who asks for money or information.”

About Sam Bourgi

Sam Bourgi is a Finance Analyst and Researcher at InvestorsObserver, bringing over 13 years of expertise in financial markets, economics, and monetary policy. His professional background spans the private, NonProfit, and public sectors, where he has held positions such as senior policy adviser, labor market analyst, and marketing director. Sam’s in-depth research and market analysis have been referenced by leading institutions and organizations, including the U.S. Congress, Department of Justice, Chicago Board Options Exchange, Bank for International Settlements, Boston University Law Review, Barron’s, and Forbes. Sam regularly appears on TV, including FOX 5 DC, CBN, KFYR TV, 11Alive, and ABC30, and is often quoted by such media outlets as Bloomberg, SF Chronicle and ZeroHedge.

About InvestorsObserver

InvestorsObserver is a trusted source of independent financial analysis, market insights, and investment research for individuals and institutions. Founded to empower retail investors with actionable intelligence, InvestorsObserver delivers timely commentary, data-driven studies, and accessible financial tools designed to simplify complex market trends. Its research and insights have been featured by various media outlets, including Yahoo, The Guardian, Morning Star, Nasdaq, and more.