The surge in gold and silver prices over recent years has attracted a corresponding surge in fraudsters targeting bullion buyers. From sophisticated counterfeit coins to elaborate online investment schemes, bullion scams are becoming more common, more convincing, and more costly for victims. In 2024 alone, UK consumers lost tens of millions of pounds to precious metals fraud.
The good news is that most bullion scams follow predictable patterns and can be avoided with the right knowledge. In this guide, we'll walk through the most common scams targeting UK gold and silver buyers, explain the warning signs, and show you how to protect yourself — including why buying from an established, reputable dealer like 888 Bullion is your strongest defence.
Counterfeit bullion is the most widespread form of precious metals fraud. Modern counterfeiting techniques have become increasingly sophisticated — gold-plated tungsten coins can look and feel almost identical to genuine gold, and fake coins are now sold through online marketplaces, social media, and even some unscrupulous dealers. The most commonly counterfeited coins include Gold Sovereigns, Krugerrands, Gold Britannias, and American Gold Eagles.
How to protect yourself: Always buy from an established dealer with physical premises and a verifiable track record. If buying privately, insist on professional authentication before payment. Read our detailed guide on How to Verify a Gold Coin Is Genuine to understand the tests used by professionals.
eBay, Facebook Marketplace, Gumtree, and similar platforms are fertile ground for bullion fraud. Common tactics include selling counterfeit coins as genuine, listing genuine coins but sending fakes after payment, using stolen photographs of real coins, and creating fake seller profiles with fabricated positive reviews. The relative anonymity of online marketplaces makes it easy for fraudsters to disappear after a transaction.
How to protect yourself: Avoid buying bullion from online marketplaces unless you can verify the seller's identity and have the item professionally authenticated before payment. The small potential saving over buying from a reputable dealer is never worth the risk of receiving a fake or nothing at all.
One of the most reliable indicators of a bullion scam is pricing that seems significantly below market value. Gold and silver trade at predictable premiums over the spot price. A Gold Sovereign will always cost a certain percentage above the gold spot price — if someone is offering one at or below spot price, something is wrong. Similarly, if a dealer is offering gold bars at prices dramatically below competitors, the product or the dealer are likely not what they appear.
How to protect yourself: Always check current gold and silver spot prices before buying and compare any offer against established dealers. If a price seems too good to be true, it almost certainly is. We price transparently against the live spot price at all times.
Investment scheme fraud is one of the most financially devastating forms of bullion scam. These schemes typically promise guaranteed returns from gold or silver investment, claiming to store bullion on your behalf in secure vaults. In reality, no bullion is ever purchased — the scheme is a Ponzi fraud that collapses when new investor money runs out. These schemes are often promoted through social media, cold calls, and sophisticated-looking websites with fake celebrity endorsements and fabricated testimonials. The FCA regularly warns about unregulated gold investment schemes.
How to protect yourself: Never invest in a bullion scheme that promises guaranteed returns — no legitimate investment can guarantee returns. Always check the FCA register before investing with any financial firm. If you want to invest in gold, buy physical bullion from a reputable dealer and take possession of it yourself. Physical gold you can hold is gold you actually own.
This scam targets investors who don't fully understand the difference between bullion value and numismatic (collector) value. Fraudulent dealers sell ordinary coins at vastly inflated prices by claiming they have rare numismatic value — when in reality the coins are common and worth only their melt value. Victims are told the coins are “investment grade” or “certified rare” — claims that are false or wildly exaggerated. When the victim tries to sell, they discover the coins are worth a fraction of what they paid.
How to protect yourself: Be very sceptical of any dealer who emphasises collector or numismatic value on coins sold as investments. Stick to well-known bullion coins with transparent, market-based pricing — like our Gold Sovereigns, Gold Kangaroos, and gold bars.
In a bait and switch scam, a dealer advertises a desirable product at an attractive price, then substitutes a different, lower-quality product when the order is fulfilled. Common variations include advertising .9999 fine gold bars but delivering lower-purity bars, advertising current-year coins but delivering heavily worn examples, or advertising named-brand products like PAMP Suisse but delivering unbranded equivalents.
How to protect yourself: Buy from dealers with clear, detailed product descriptions and a transparent returns policy. Check that what you receive matches exactly what was advertised. At 888 Bullion, every product listing includes precise specifications and we stand behind every item we sell.
Some fraudulent companies offer to store gold on your behalf in “allocated” vaults — meaning specific bars or coins are supposedly set aside in your name. In reality, either no gold exists, or the same gold is allocated to multiple customers simultaneously. When customers try to withdraw their gold, they encounter endless delays before the company disappears entirely.
How to protect yourself: If you use a storage provider, use only well-established, regulated vault operators with independent auditing. Better still, take physical possession of your gold and store it yourself — read our guide on How to Store Gold Safely for practical options. Gold you hold yourself cannot be stolen by a fraudulent storage provider.
Social media platforms have become a major vector for bullion fraud. Fraudsters create convincing fake profiles impersonating legitimate dealers, use paid advertising to reach targeted audiences, and increasingly use AI-generated videos of celebrities to promote fraudulent gold investment schemes. Fake accounts may clone the branding and imagery of genuine businesses to appear legitimate.
How to protect yourself: Always verify you're dealing with a genuine business by checking their website directly (not via a social media link) and confirming their physical address. 888 Bullion's only official website is 888bullion.co.uk — be wary of any account or website claiming to be us that directs you elsewhere.
At 888 Bullion, we operate from established Hatton Garden premises with a verifiable physical address and a team you can meet in person. Every coin and bar we sell is authenticated using professional testing equipment including XRF analysis. We price transparently against the live spot price, provide receipts for every transaction, and buy back what we sell at fair market prices. We stock only coins and bars from the world's most trusted mints and refiners — including the Royal Mint, Perth Mint, PAMP Suisse, Heraeus, Umicore, and Valcambi.
For more guidance on buying gold safely, read our related guides: How to Verify a Gold Coin Is Genuine, Understanding Gold Purity, New vs Pre-Owned Bullion, and How to Sell Gold in the UK. Browse our full authenticated range of gold coins and bars at 888 Bullion, or visit our Hatton Garden premises for expert advice.
