SCAM WATCH: When Can I Wire Money to a Dealer?

money wire, wire scam, gold scamQ: It seems everyone wants me to send the money first before I can get the metals I ordered. How do I make sure I’m not going to get scammed?

A: The industry standard is to send payment to a dealer for your metals before they ship to you. But even though this is standard procedure, it does open you up to some risk. What if the dealer doesn’t fulfill his end of the deal? When selecting a dealer to work with, the best way to avoid this scam is to use a dealer you’ve been referred to by a trusted friend or advisor who has done significant business with the dealer and had a consistently great experience.

If you’re working with a dealer for the first time that’s kind of a mystery, I highly recommend starting with a small order and testing the dealer. Once you wire your money, there’s no way to stop it or get it back. A wire is permanent, and the money is gone. Be careful wiring only to someone you trust implicitly.