Common Gold Scams To Avoid | Andy Schectman

If you own precious metals (or plan to), you need to be aware of these

In response to strong audience demand for it, precious metals expert Andy Schectman and I conducted a livestream this morning discussing the top scams and fraudulent practices prevalent in the gold & silver industry.

Andy shared the warning signs to look out for, as well as what to do if you or a loved one suspects you’re the victim of one of these rip-offs.

It’s sad that such an important asset class is tarnished by fraudsters. But as Andy says, forewarned is forearmed.

To listen to the replay of the livestream, click here or on the video below.

FYI: if you’re looking to purchase bullion online, Thoughtful Money recommends Miles Franklin, co-founded, owned and operated by Andy. The firm has been in operation since 1989, and is a full-service precious metals broker with a mission to educate the masses on the benefits & principles of sound money and deliver fair pricing.

Given the important of the partnership between Thoughtful Money and his firm, Andy himself has offered to give Thoughtful Money followers the “white glove” treatment. So if you’re interested in learning more about their services, email them directly at info@milesfranklin.com and Andy or one of his lieutenants will give you personal attention, answer all your questions and work to get you the products that best meets your needs at the best possible price.

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GOT GOLD?: Read our free Guide To Buying and Storing Gold & Silver:

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Adam’s Notes: Andy Schectman (recorded 6.4.25)

EXECUTIVE SUMMARY:

• Precious Metals Scams Exposed: Andy Schectman has noticed a surge in widespread IRA gold/silver scams since 2019, targeting seniors with overpriced fractional coins (75-175% premiums), promoted by high-profile figures, yielding much lower value on resale than the buyers were guided to expect.

• IRA Storage Pitfalls: Self-custody in IRAs risks IRS penalties (taxes + 10% for <59.5), while non-segregated storage delivers generic metals, eroding value;. Andy emphasized segregated storage (e.g., Brinks, IDS Dallas) is essential.

• Tax and Reporting Rules: Bullion sales face a 28% collectibles tax, with dealers having to report sales for >24 oz of specific gold coins or ≥1 kilo bars, and >1,000 oz silver bars. State sales taxes vary (e.g., California: tax < $2,000).

• Silver’s Generational Potential: Silver at ~$34.47/oz is undervalued (gold-silver ratio ~100:1 vs. 42:1 historical), with record COMEX deliveries and global buying (China, India, Russia) signaling