How to Verify a Precious Metals Dealer
To verify a precious metals dealer, confirm it has a real physical address, read its complaint history and how it responded on the Better Business Bureau and Business Consumer Alliance, search your state attorney general's office and the CFTC for enforcement actions, and read a broad sample of third-party reviews. No single source is enough; the pattern across several is what tells you something.
Check 1: A Real, Verifiable Physical Address
A legitimate dealer should list a street address, not only a P.O. box or a virtual office. Search the address in a mapping service, check that it matches the company name on the dealer's website and paperwork, and look up the business in your state's (or the dealer's home state's) corporate registry to confirm the legal entity name and how long it has been registered.
Make sure the entity named on your purchase agreement is the same one you researched. Some firms operate under several brand names. For reference, Goldco lists its headquarters as 24025 Park Sorrento, Calabasas, CA 91302; the same check applies to any company, including Goldco.
Check 2: Better Business Bureau Profile
The BBB publishes business profiles that include complaint counts, complaint details and the company's responses. Do not stop at the letter grade. Read the complaints themselves and ask:
- What are people complaining about: delays, pricing, buyback offers, sales pressure?
- Did the company respond, and were complaints resolved?
- Is there a pattern, or are complaints isolated?
Complaint volume should be read relative to a company's size; a large firm will naturally have more. Our page on researching Goldco customer feedback shows how to do this for one specific company.
Check 3: Business Consumer Alliance
The Business Consumer Alliance (BCA) is another nonprofit that collects consumer complaints and publishes business profiles. Its records sometimes contain complaints that do not appear on the BBB, so checking both gives a fuller picture. Again, read the substance, not just the summary rating.
Check 4: State Attorney General and Regulators
State attorneys general and some state securities or consumer protection agencies bring actions against metals sellers for deceptive practices. Search your attorney general's website and news releases for the company name, and call the consumer protection line if you cannot find anything. Searching the company name with words such as "lawsuit," "settlement" or "consent order" can also surface past disputes; read the underlying documents rather than headlines.
Check 5: CFTC Enforcement and Advisories
Most retail dealers that sell fully paid, delivered metal are not registered with the Commodity Futures Trading Commission, so lack of registration is not by itself a red flag. However, the CFTC does bring fraud cases involving precious metals, especially financed or leveraged sales and schemes where metal was never delivered. Search the CFTC's site for the company and its principals, and read its customer advisories. Our summary of what the CFTC warns about precious metals fraud covers the main themes. If a firm does offer leveraged or financed metal, check whether it is registered and look it up in the National Futures Association's BASIC database.
Check 6: Third-Party Reviews
Reviews on third-party platforms can show how ordinary customers experienced the process. Use them carefully:
- Read the most critical reviews and the company's replies.
- Look at dates; recent experience matters more than old reviews.
- Be wary of profiles with only perfect scores posted in bursts.
- Remember that affiliate websites, including this one, earn commissions from some companies they cover. Weigh what you read accordingly and check the primary sources yourself.
Check 7: Test the Company's Transparency
Ask the company direct questions in writing and see how it answers. Examples: What is the premium over spot on this specific product today? What are the cancellation terms? Is this product IRA eligible? What exactly are the buyback terms? Which custodians and depositories do you work with? Our list of 25 questions to ask a precious metals company has more.
Clear written answers are a good sign. Vague answers, pressure to decide quickly, or a push toward a product you did not ask about are warning signs; see high-pressure sales red flags.
Check 8: For Metals in an IRA, Verify the Custodian and Depository Too
In a self-directed IRA, the dealer sells the metal, but a separate custodian administers the account and a depository holds the metal. Verify each independently, confirm that statements come directly from the custodian, and check that the depository is named in writing. Our guides to precious metals custodians and precious metals depositories explain their roles.
Putting the Checks Together
Write a short note for each company you are considering: address confirmed, complaint patterns, any regulatory actions, review themes, and how well it answered your written questions. Compare side by side. Our page on how to compare precious metals companies suggests a framework, and the Is Goldco legit? page applies these checks to one company.
Frequently Asked Questions
Does a high BBB grade mean a dealer is trustworthy?
It is one signal. Read the actual complaints and responses, and combine it with regulatory searches and reviews.
Do gold dealers need a federal license?
Dealers selling fully paid physical metal generally are not registered with the CFTC. Firms offering leveraged or financed metal transactions are subject to different rules. State requirements vary.
Where do I report a dealer I think is fraudulent?
Your state attorney general, the CFTC, the FTC's ReportFraud site and the Consumer Financial Protection Bureau all accept reports.
How long should verification take?
An hour or two of focused searching is usually enough to spot serious problems. That is short compared with the time it can take to recover from a bad purchase.