At a time when the Russians and Chinese are stockpiling large amounts of gold, India is amassing silver. Although not heavily covered in the mainstream media, this is a big deal, because India’s huge population (and growing number of billionaires) means that if only a tiny percentage of their population continues buying, the price impact on silver could be significant, to say the least.

Purchasing precious metals today has been described like the Old West. There is very little regulation, which many liberty minded folks like because buying bullion gives them flexibility and privacy. However, unscrupulous dealers and their underhanded practices ruin things for everyone, since they cost consumers millions and give the government an excuse to intervene.

Unethical Tactics Used By Some Bullion Dealers

Some bullion dealers intentionally offer their clients the most inappropriate and expensive forms of silver and gold, and then claim to keep it in storage without the client accepting delivery for an extended period of time. Some dealers take it a step further, presenting their clients with the chance to leverage purchases via complex loan or margin agreements. Eventually, the client will lose their money on a purchase because they didn’t take physical delivery while they had the chance.

The reason the government hasn’t gotten involved in most cases is because the sales tactics being used don’t yet resemble securities trading. However, if you don’t hold precious metals in your physical possession, you don’t own them. The only exception to this is if you have them stored in a depository that is approved such as those in places like the Cayman Islands. Unethical firms will often use telemarketers to promote their products. These individuals promise a great deal, but in most instances those that buy from them will end up losing a tremendous amount of money.

How To Avoid Becoming A Victim

The best solution is not greater government oversight, but greater awareness on the part of the consumer. Conduct extensive research on the dealer you intend to buy bullion from. Find out how long they’ve been in operation. Learn their business procedures and methods. If they employ a telemarketing team that doesn’t own a single ounce of silver or gold, this should be a red flag. Ascertain their reputation. If they don’t have an address in Google Maps, or a positive rating on the BBB (Better Business Bureau) website, then they cannot be trusted, period. As far a television advertising goes, the promotions you see on TV are paid for by the viewer, so beware when buying bullion.

The government has begun taking actions against some. For instance, the CFTC charged the Monex Deposit Company and related affiliates in a multimillion dollar scheme to defraud their customers. Essentially, the defendants used deceptive tactics which lead to retail customers losing hundreds of millions due to non-legal, off exchange precious metals that were leveraged in various transactions.

As precious metals enter another bull market, cases like the Monex scandal will continue to be a problem. Whether you’re a collector or investor in gold and silver, it is important to perform your due diligence and ensure that the company you’re dealing with is legitimate. Although the Monex case has been resolved, many of the victims will never get their money back so preventing these problems is the best course of action.

Each day in Saudi Arabia, more than five million high sulphur barrels of crude oil will be converted into low crude sulphur. Afterwards it will be transferred to refineries which are responsible for generating a variety of petroleum products. Saudi Arabia and other Middle Eastern countries represent a significant portion of international oil supplies, which influence gold in a number of ways.

During the 1970s, the United States went through a period of inflation, which became so severe that the billionaire Hunt Brothers invested heavily into silver, causing its price to rise significantly. Today the USA carries even greater debt, and below are some reasons why this will benefit silver investors.

In 1986, gold owners were allowed for the first time to place their precious metals in IRAs, or Individual Retirement Accounts. Since then, the trend has remained popular among investors, since gold is one of the few types of money which aren’t the liability of someone else. Here is how to store your IRA gold offshore.

Due to increasing deficits and a constantly rising national debt, many financial pundits in the U.S. have raised the question of whether or not the nation should return to a gold standard. Indeed, many of the most successful nations in history, such as Imperial Rome and the English Empire, thrived for centuries due to using gold coins or backing their currencies with it. Below is an overview of this financial system, and the benefits and challenges it brings to countries that utilize it.