When you begin shopping for silver and gold products, several factors will shape your decisions.
Price is often the most important consideration. Precious metals dealers know this and frequently design their business models and marketing around low-price offers.
Many shoppers are conditioned to assume that the lowest price wins when comparing similar or like-kind bullion products from different dealers.
Who doesn’t want to save some fiat currency on a trade if they can?
However, many buyers prioritize actually receiving the products they purchased over saving a few dollars at checkout. Recent reports show numerous buyers encountering late or missing shipments from an online gold and silver dealer based in Orange County.
According to The Orange County Register, consumers nationwide have reported delayed or missing deliveries of rare silver and gold coins purchased from the dealer. Some customers say they lost tens of thousands of dollars and have taken legal action.
Independent industry observers and bloggers have documented the delivery delays in detail. Consumer protection organizations also show significant complaint volumes: more than 200 complaints at the Better Business Bureau over three years and over 240 complaints with the Business Consumer Alliance in the same period.
Are low advertised prices sometimes bait for higher-margin products?
Another concern involves alleged “bait-and-switch” tactics by some dealers who advertise bullion at low premiums but steer customers toward high-margin collector coins. The city of Santa Monica recently filed suit against a Santa Monica-based dealer, alleging deceptive national sales practices that pressured buyers into purchasing overpriced collector coins instead of bullion bars.
The lawsuit claims the dealer used low-premium marketing to attract callers who wanted bullion, then persuaded them to buy collector coins with substantially higher markups. The complaint says sales staff made several false claims to justify the switch, including that collector coins were a better investment than bullion, offered greater privacy, were not reportable for taxes, or could not be confiscated by the government—none of which the suit alleges to be true.
City attorneys allege the scheme allowed the dealer to extract “tens of millions of dollars” from consumers, with typical purchases ranging from five to six figures or more in overpriced coins.
Bullion buyers beware — do your due diligence
When researching gold and silver dealers, a quick check of a company’s Better Business Bureau rating may feel like a reasonable step, but ratings alone can be misleading. Investigations have shown that some fake or problematic businesses still receive high ratings, so it’s essential to dig deeper.
Rather than relying solely on a BBB or BCA rating, examine the volume and substance of complaints filed against a dealer. Read the actual complaints to understand the recurring issues and how the company responds. Some complaints may involve minor issues like undisclosed shipping fees; others can be far more serious, affecting retirement accounts or life savings.
For example, one Business Consumer Alliance complaint from a customer described buying $25,000 in gold coins through an IRA and later learning the account value had fallen to $20,000 while market prices rose. The customer alleged the dealer charged a 100% markup on the coins and urged others to avoid the company. Despite dozens of complaints, that dealer still held a top-tier BCA rating, illustrating why complaint content matters more than a headline rating.
To strengthen your due diligence, use these practical steps:
- Search the company name or URL with terms like “scam” or “rip off” to uncover public complaints or forum posts.
- Check consumer protection sites such as RipoffReport and other complaint databases for related reports.
- If a dealer does not publish live buy and sell prices online, be cautious. A dealer unwilling to provide transparent pricing on request is a red flag.
By focusing on complaint volumes and details, verifying transparent pricing, and researching customer experiences, you greatly reduce the risk of costly mistakes.
We will continue to provide actionable, high-quality information to help you choose the right products, deal with reputable dealers, and expect fair prices and timely delivery.