The Best and Worst of Gold

You’ve heard me say recently that gold prices are through the roof; it hit another all-time high last week, and as of this writing is over $2,600 per ounce.  Just this week I processed gold and silver for a new client; this small pile of rings, charms, necklaces and bracelets includes 31 grams of 14 karat gold that will net the client over $1100, given my partnership with a wholesale buyer that pays top dollar. Score! That’s the best. No scam, just trustworthy advising and expert guidance on the sale.

So what’s the worst? It’s a new scam that involves gold.

The scam happened to one of our neighbors; just this week the person showed up at our HOA office with an FBI agent, seeking security video footage. The agent said that approximately 30 people in the area have been scammed and that they have made several arrests in the investigation.

So here’s the deal, as reported for an identical scam in Missouri. Authorities say victims get bogus pop-up messages on phones, tablets, or computers, telling them to convert cash from their bank accounts into more trustworthy gold coins or bars because their bank accounts have been hacked. Scammers convince victims that they, the scammers, will keep the gold for them in a safe place.  The scammers arrange a meeting or send a courier to pick up the gold.

The conversion to gold makes it easier for scammers to steal large sums in small packages and take it out of the country. A handful of 1-ounce gold coins can easily be worth $10,000. The FBI in St. Louis is getting reports almost every week regarding a scam involving gold and targeting the elderly’s life savings. Reminder: If anyone tells you your bank accounts have been hacked, call your bank personally to find out the real story.

For more on this scam, check out the news article from Fox 2 Now in St. Louis.