Don’t Be Fooled: The Precious Metals Industry Is Still the Wild West
I’ve spent the last 15 years pulling back the curtain on the precious metals industry—educating the public about the standards it should follow, and exposing the shady tactics it often does. That includes high-pressure sales, misleading “research” videos, paid reviews disguised as advice, and countless other tricks dealers use to pad their margins at your expense.
Now, some of the same players who built their businesses on deception are trying to play hero—painting themselves as the “white knights” of the industry. Don’t buy it.
No Rules. No Oversight. No Safety Net.
Here’s the reality: there is no meaningful regulation in this industry. Regulators only show up after people have lost their money or their metals have gone missing. I’ve yet to see a regulator enforce any kind of standard for advertising, disclosures, or transparency.
How do I know? I see these same bad practices happening every day.
Dealers Say Whatever They Want—and Make You Sign It Away
From precious metals dealers to self-directed IRA custodians, depositories, and digital or pooled storage programs—most of these businesses can say whatever they want to win your trust and your wallet.
Then they lock you into fine print that protects them, not you:
- Hold-harmless clauses
- Limits of liability
- Waivers of jury trials
- Quiet changes to user agreements
- Layered LLCs designed to shield ownership and dodge accountability
These legal gymnastics are there for one reason: to cover their backs while putting your capital at risk.
I Warned You in 2023—Now You’re Watching It Unfold
In late 2023, I wrote about the slowdown in the precious metals retail industry. I warned that dealers would resort to louder marketing and more creative sales gimmicks just to survive.
2024 has proven that prediction dead-on:
- Aggressive advertising everywhere
- Dealers who overcharged now calling out those who flat-out stole or went bankrupt
- Endless claims of silver shortages
And a new trend—dealers justifying outrageous markups as if they’re doing you a favor.
The Risk No One Told You About: Spread Risk
Here’s the reality: there is no meaningful regulation in this industry. Regulators only show up after people have lost their money or their metals have gone missing. I’ve yet to see a regulator enforce any kind of standard for advertising, disclosures, or transparency.
How do I know? I see these same bad practices happening every day.
What’s Happening Behind Vault Doors
Most depositories are directly affiliated with dealers—retail or wholesale. When those dealers start bleeding revenue, it’s the depository business that suffers next.
Here’s what that looks like:
- Depositories structured as subsidiaries or related entities
- Cash Flow and insurance tied to a failing parent company
- Questionable fee practices to stay afloat
- Risk passed down to you, the storage client
In other words, when the dealer model collapses, the storage arm may not have the assets or safeguards to protect your metals.
And good luck getting regulators to catch this—most of them don’t even understand how these backroom structures work.
Want Straight Talk Without the Sales Pitch?
If you’re tired of articles that read like commercials—or “educational” videos that lead straight to a checkout page—take a deeper dive.
You’ll find more of my analysis, breakdowns, and hard-earned insight (without the fluff) at https://www.goldsilvervault.com/blog
Meet the Author
Bob Coleman, with a successful career in investment and portfolio management since 1992, is the founder of Idaho Armored Vaults and Profits Plus Capital Management, dedicated to providing secure and comprehensive solutions for precious metal investment and storage, emphasizing transparency, risk mitigation, and client-focused service.
BOB COLEMAN
President
(208) 468-3600
[email protected]