The Truth About Gold & Silver Scams (and How to Buy Safely)

If you’re stacking gold or silver for protection against inflation, you NEED to read this before you buy. When gold and silver prices surge, scams follow. The shocking truth? Even trusted bullion sellers with decades of credibility have collapsed overnight, wiping out life savings.

In this blog post, we expose the biggest gold & silver scams—from overpriced collectible coins to fake bars flooding in from China—and show you how to buy precious metals safely and smartly.

You’ll learn how one company vanished with $40 million in customer gold and silver, why counterfeit coins are harder than ever to spot, and the hidden costs most investors overlook. More importantly, you’ll discover practical steps to avoid getting scammed and the safest ways to invest in gold and silver today.

If you’re buying gold or silver for wealth protection, read on.

Gold & Silver Scams: The $40 Million Dealer Collapse

One of the most infamous gold and silver scams in U.S. history was the collapse of The Tulving Company. At the time, it was considered one of America’s most trusted bullion dealers. But when it failed, it took more than $40 million in customer gold and silver with it.

Thousands of investors lost their life savings, proving that even the most established and “trusted” names in the bullion world can end in disaster.

Lessons for investors:

• Never assume reputation = safety. Even long-standing companies can collapse.
• Always diversify where you buy and store your metals.
• Get independent verification and proof of delivery whenever possible.
  
  

The Trap of Gold & Silver Premiums

Even if you buy from a legitimate dealer, premiums are one of the most costly traps for investors. Some collectible coins sell for 50%–100% more than spot value, which means you’re already underwater the moment you buy.

How to avoid premium traps:

• Stick with simple bullion coins, rounds, or bars.
• Avoid “collectible” or “limited edition” coins unless you’re buying as a hobbyist.
• Compare premiums from multiple dealers before purchasing.
  
  

Beware of Counterfeit Gold & Silver Coins

Counterfeit coins and bars are flooding into the U.S., with many originating from China. Some are so well made that even experienced dealers can struggle to spot them.

How to protect yourself:

• Use proper authenticity testers (don’t just rely on a scale and magnet).
• Only buy from reputable dealers with buyback guarantees.
• Be cautious of deals on online marketplaces and person-to-person sales.
  
  

Online Marketplaces and Face-to-Face Sales

Scams aren’t just from shady dealers. Online platforms and local cash-for-gold shops are full of overpriced or fake metals. Many sellers take advantage of beginners who don’t understand premiums or purity.

Stay safe by:

• Avoiding peer-to-peer gold purchases unless you can verify authenticity on the spot.
• Being skeptical of deals that seem too cheap.
• Choosing established dealers with transparent pricing.
  
  

Hidden Costs of Gold & Silver Ownership

Even if you avoid scams, there are hidden costs to owning precious metals that many investors overlook. These include storage fees, insurance, shipping, and taxes on profits when you sell.

Smart ways to prepare:

• Budget for storage and security before buying.
• Keep receipts and documentation for tax reporting.
• Consider safer storage options like private vaults or trusted custodians.
  
  

How to Buy Gold & Silver Safely in 2025

If you really want to buy physical metals, here are the safest routes:

• Stick with trusted online dealers that have transparent pricing, insured shipping, and strong reputations.
• For beginners, silver rounds and junk silver are affordable and easy ways to start stacking.
• Always test authenticity with reliable gold & silver testers to confirm purity.

Remember: If the deal seems too good to be true, it probably is.

Safer Alternatives: ETFs, Mining Stocks & Paper Gold

Not everyone wants to deal with physical gold and silver. For some, safer alternatives include ETFs, mining stocks, and paper gold. While these don’t offer the same wealth protection as physical metals, they do reduce risks of scams, theft, and storage costs.

Consider these if:

• You want exposure to gold and silver without storage headaches.
• You’re more comfortable with brokerage accounts and digital assets.
• You’re looking for liquidity and easier trading.
  
  

Final Warning: Scams Always Rise When Gold & Silver Boom

History proves it—scams explode whenever gold and silver prices rise. From the Tulving collapse to counterfeit coins to overpriced premiums, the risks are real.

The safest investors are those who:

• Stay informed.
• Buy smart.
• Protect themselves with testing, storage, and diversification.
  
  

Key Takeaways

• Even trusted dealers can collapse (Tulving lost $40 million in customer assets).

• Premiums are one of the biggest hidden traps in precious metals investing.

• Counterfeit gold and silver coins are on the rise—test everything.

• Online marketplaces and cash-for-gold shops are risky.

• Safer ways to buy in 2025 include silver rounds, junk silver, and trusted online dealers.

• Scams rise when metals boom—protect your wealth with caution and preparation.
  
  

Watch the full video here to see the complete breakdown of gold & silver scams and the safest ways to buy in 2025.

👉 Do you think the risks of gold & silver scams are higher than ever?
Share your thoughts in the comments on the YouTube video.

Thanks for reading, and see you there!