The price of gold reached its highest point in history in the second half of 2011. Taking advantage of the bad economy and people’s interest in investing in gold, crooks came out with lucrative scams to victimize the potential buyers.
Creating beautiful fake websites, backed up by phony testimonials, scammers advertise even on radio stations and guarantee high returns on the investments.
Victims send the money, there is a promise that the gold exists (gold bullion) and the seller guarantees the gold is saved for the client in some safe location. Indeed, the gold doesn't exist.
How to avoid: if you want to buy gold, always buy locally, unless you have solid proof that the gold actually exists (go there by yourself first, or your good friend who recommended the seller has seen it). Also, check to see if the company is regulated by the state you live in. If the seller uses high-pressure tactics, step away-- it is certainly a scam – real gold dealers don’t need to press for business.