Lawsuits can be a complete disaster for any business. When it comes to silver and gold dealerships, lawsuits often mark the end of the business. If you sell and purchase gold and silver products, you have to realize your responsibility to protect your business from such legal actions. Here are some important steps you can take to avoid detrimental gold and silver lawsuits.
Ways to Avoid Lawsuits as a Gold and Silver Dealer
Transparency is sacred in the gold and silver business. Transparency is not limited to selling only the pure gold and silver products. In fact, it also covers your selling tactics. Merit Gold and Silver ended up in court mainly for being a scam that promised what it did not deliver. Tell your customers what your product is and avoid the bait and switch scam tactic. The aforementioned company told people a lot of things about buying collector coins that were facts.
Respond to Customer Queries Immediately
Understand the nature of this business. People are investing a lot of money while all the time being skeptical about your business being legit. Delay an answer to their inquiry and they will assume you are a scam. Provide contact details including phone numbers, email addresses, and web forms to let customers contact you.
Obtain the Necessary Licenses
It is best that you register the name of your business before you start selling gold and silver coins, bullions, etc. When you have a legit business, you will also need the necessary licenses for operating in your state. Make sure you fulfill those formalities before jumping in the world of buying and selling gold and silver. It is imperative for you to visit the City Hall to know what regulations apply on you. Starting your gold and silver dealing business could be as easy as obtaining a DBA license. However, you need official proof that this is all you need.
Have Everything Documented
Keep away from verbal commitments. Secondly, you should document everything even if it is not fundamentally supposed to go on a piece of paper. In addition to the purchase agreements and term and conditions, you want to create logs of every communication between you and the customer. You must be well-prepared on your end in case you face a lawsuit in future.
In addition to doing the things stated above, you should also consider getting in touch with a company that can provide you with professional advice on how to run a gold and silver business. First Fidelity Reserve Lawsuit Information can definitely help you stay on top of everything if you are selling and purchasing silver, gold, and other precious metals. You have to keep in mind that in this particular industry, you as a dealer are the usual suspect when something goes wrong. For that reason, you have to make sure you prepare yourself to face the worst scenarios by documenting everything, logging your communication with customers, providing only valid information about your products, and avoiding any false claims that can often slip into your online content while you are trying to create an attractive ad copy.