BBB Tip of the Week

Advertisements about gold investment opportunities are fairly common. There are several ways to invest in gold, including bullion bars and coins, collectible coins and gold stocks and funds. For about 40 years, U.S. citizens have been able to own gold bullion in America without a special license.

Like any investment, the value of gold can fluctuate over time, providing no guarantee of future value. One myth that some disreputable sellers perpetuate is that the government may confiscate gold. There is no federal law or regulation within the Treasury Department to this effect.

If you’re thinking about investing in gold or other precious metals, the Better Business Bureau and the FTC offer the following investigation tips before you invest:

• Check out information at the U.S. Commodity Futures Trading Commission (CFTC at www.ctfc.gov). You can learn more about precious metals fraud at http://1.usa.gov/1HiQZWV and search for information about industry filings at http://1.usa.gov/1BQ6stW.

• Search the National Futures Association website for entities registered with the CFTC and the NFA at http://www.nfa.futures.org/ basicnet/.

• Consult with a reputable dealer or financial consultant before investing.

• Conduct an online search for complaints about any seller before you agree to a transaction. Check the company’s Business Review at www.bbb.org. Remember that a lack of complaints may mean that it is too soon for consumers to know that they’ve been defrauded.

• Compare prices for gold bullion coins and collectible coins because they may be higher than the value of the gold they contain. Get an independent appraisal to avoid price inflation.

• Ask about the melt value of coins, which is the intrinsic value when melted down into bullion for sale.

• Ask how delivery will be made. Some dealers will only deliver to a secure facility rather than directly to the consumer.

• Walk away from high pressure sales tactics. Also walk away from dealers who refuse to talk about the risks of your investment or who minimize the risks.

• Always get a receipt for your purchase.

• Consider all expenses when investing, such as insurance and storage costs for a safety deposit box or other safe storage option.

To see what scams are trending, check the BBB Scam Tracker at http://www.bbb.org/scamtracker /eastern-washington or call (509) 455-4200.

By Erin T. Dodge, BBB editor