Investors are dealing with an increase in scams at the same time that gold prices continue to soar.
Investors are pouring billions of dollars into gold bars, coins, and digital tokens as prices continue to rise above all previous records. Regulators and economists caution, however, that the same boom is contributing to an increase in scams that stealthily deplete life savings and retirement funds.
Gold has traditionally been promoted as a refuge during uncertain times. Currently, 45,000 tons of gold in bars and coins—roughly 22% of all gold ever mined—are held by private individuals, according to the World Gold Council (WGC).
To put it another way, the demand for bars and coins alone makes up around 1,000 tons annually, or over 25% of the world’s total demand for gold.However, the retail gold market of today encompasses much more than just actual bullion. Investors can purchase vaulted gold digitally using applications and websites, or they can purchase tokenized gold on blockchain platforms.
But fraud has also flourished as a result of the easier access to the market.
A growing disparity
Basic financial literacy is a challenge for almost half of Americans. Scams involving gold are increasingly taking advantage of this weakness, particularly among older people.
Elderly victims of gold scams in Texas lost around US$55 million. Over 100 cases of couriers being hired to pick up illegal cash or gold bars in the Boston area have been reported to the FBI in the last two years, with losses totaling more than US$26 million. People over 60 reported almost 98% of those losses.
An elderly couple in Ottawa lost US$460,000 in a gold investment scam last year, according to authorities, after thieves persuaded them to purchase gold and set up a pickup. The con artists told their victims not to tell their banks or relatives.
North America is no longer the only region with this pattern. In 2025, officials in Singapore documented at least 131 instances where victims were tricked into purchasing gold bars and giving them to con artists in person.
Police noted a “concerning trend” of syndicates switching to gold as a payment method since it is more difficult to trace than bank transfers, even if the nation’s total scam losses decreased to US$913.1 million from a record US$1.1 billion in 2024.
Five scams are becoming more popular.
According to Sam Bourgi, senior analyst at InvestorsObserver, as technology has advanced, so too have the mechanisms of gold fraud. Scammers may create convincing websites and customize persuasive messages in a matter of minutes as generative AI technologies become more freely available.
As gold prices rise, he has identified five methods that are becoming more and more prevalent.
The first is aggressive upselling masquerading as opportunity, according to Bourgi. At or close to the current price, an investor may first buy a small quantity of real gold. It seems like a routine transaction. But shortly after, the customer starts receiving intense pressure to buy “premium” coins or artifacts at exorbitant markups.
“This is not a scam as we know it, but for older people, it seems like a fantastic idea when they are selling generational riches in the advertisement. It’s likely that they are unaware of the actual prices, including dealer costs in addition to the worth of gold. Additionally, Bourgi noted in an email to the Investing News Network (INN) that “they easily spend much more than they should, leaving them high and dry in the end, because they are constantly under pressure with calls.”
A second plan takes advantage of social media. Fraudsters advertise precious metals at enticing rates, mimic the name and branding of reputable jewelry stores, and then pretend that the actual store is temporarily closed.
Deposits are encouraged in order to “reserve” products. The address is fictitious when they try to pick up their goods.
Payment methods are the subject of a third red flag. If a seller declines to accept traceable payment methods like credit cards or traditional bank transfers, you should be suspicious right away.
“Wire transfers are difficult to track down or irrevocable. No honest vendor would oppose bank involvement. If so, confirm all of their claims using government websites or other sources, Bourgi said.
The fourth category consists of fraudulent investment platforms that provide digital gold accounts or tokens backed by gold. Online investors may see their balances increase quickly, but when they try to withdraw money, they may run into unexplained “taxes” or levies.
In this instance, as soon as the money left your bank, it went into the hands of scammers. You won’t receive this money back either. Paying the enigmatic taxes is useless since your money is locked up in a phony platform. Check reviews and registration if the website is not well-known, Bourgi said.
Lastly, victims are targeted twice by recovery schemes. A person’s contact information is sold after they lose money in a fraudulent gold transaction. Assistance is provided by someone posing as a lawyer or government representative, but only in return for a payment up ahead.
“Never put your trust in someone who poses as a government official or someone else you can’t confirm with reliable sources. particularly if they request that you pay them in full up front. It happens that you both lost money when you purchased gold, but don’t repeat the same error,” Bourgi said.
The function of industry norms
The issue is not gold per se. Experts claim that aggressive marketing strategies and opaque methods are the root of the problem.
After consultation with 52 industry players in 16 countries, the World Gold Council created the Retail Gold Investment Principles to address trust issues in the retail sector.
Fairness and integrity, open pricing, customer asset protection, and regulatory compliance are only a few of the values that are emphasized by the principles.
Although the rules are optional, its goal is to provide providers with a framework for ethical behavior and a means of demonstrating trustworthiness to investors in a largely unregulated market.
The warning signs for consumers are the same in all jurisdictions: unsolicited calls from so-called “senior specialists,” tight deadlines, assurances of guaranteed returns, pressure to sell retirement accounts fast, and sellers who are reluctant to reveal costs or regulatory qualifications.
Additionally, authorities caution against phone calls or pop-up messages that suggest bank accounts have been hijacked.
According to the Federal Trade Commission (FTC), thieves frequently pose as government officers, claiming that a victim’s name or Social Security number is connected to crimes, and then giving them instructions to convert their money into gold for “safekeeping.”
Buying gold bars and giving them to someone is the same instruction. Such directives are clearly bogus, according to law enforcement.
The ‘golden’ guideline is to be carefully
It is often known that gold is attractive during times of inflation and market turbulence. However, due diligence becomes increasingly important as retail participation increases and costs continue to rise.
Simple but effective defenses against these schemes include checking independent platforms for real-time gold prices, confirming dealer registrations with state and federal agencies, demanding traceable payment methods, and seeking advice from financial advisors or trusted family members before making significant purchases.
