Dealing in silver and gold is serious business. You are collecting and disseminating the most prized possessions of the world. While also a perfect metal for jewelry, gold remains one of the most common ways for people to save and invest their money. The stable gold prices are often an attraction for people to fight inflation and use their savings as investments. However, gold dealers have to realize the sensitive nature of this business, and the many hardships that can come along the way. The biggest challenge for any gold or silver dealer is to face a lawsuit from a buyer.
Here are some of the major risks that you can face as a gold dealer, so you should do the necessary preparation before being one.
As a gold dealer, even the slightest mistake in your conduct can result in a big lawsuit. The last thing you want happen to you is ending up in the list of gold scammers. However, lack of communication with customers or being ambiguous with important details can get you there. When customers find out that you are not delivering what you promised, they go to the court. Take the example of Northwest Territorial Mint. The company filed bankruptcy but was facing a lawsuit of $72.5 million. You don’t have to be a scammer to land in that list. When you don’t communicate or when you convey misinformation, the end result can be horrible.
Even if you don’t end up with a lawsuit, you could destroy your image as a gold or silver dealer. If you don’t have good reviews about your company on the internet, people are going to stay away from you. You don’t want that to happen. However, it requires efforts for you to prevent that from happening. You have to provide top-notch customer services where you are available to answer customers’ questions immediately and satisfactorily. Merit Gold and Silver, a company in Santa Monica, faced a lawsuit for committing false promises with customers. Believe it or not, one of the reasons for them being in court and facing fraud charges is that they called numismatic coins a securer investment compared to bullions. Avoid making such promises that not only mar your image but can potentially land you in court.
Miscommunication is different from misinformation or misguiding. In this particular instance, you as a dealer might not be always wrong. Due to the availability of internet, many gold and silver brokers operate through online websites. When people make decisions based on the information available on the website, they can end up misinterpreting a few things. That’s why, you must always encourage them to contact your customer service for any detailed inquiries. Furthermore, you should keep your website content straightforward and free from any content that could cause miscommunication.
If you are someone looking forward to becoming a gold and silver dealer, you have to make sure you take care of the points stated above. It is a sensitive and high-risk business wherein your smallest mistake can be your biggest and last mistake. Be very sure that you understand the intricacies of operating an online business because it is completely different from running a physical location.