Introduction: The Glittering Facade of a Sherman Oaks Scam
Priority Gold, a Sherman Oaks-based precious metals dealer, markets itself as a “trusted” partner for investors seeking security in gold and silver. Promising “competitive pricing” and “secure storage,” the firm has attracted clients worried about economic instability. However, a surge in complaints, including a verified Ripoff Report, exposes a pattern of alleged fraud, financial exploitation, and systemic betrayal. This investigation uncovers how Priority Gold’s polished image hides a reality of broken promises, manipulated prices, and shattered retirement dreams.
Bait-and-Switch: The Illusion of Safe Investments
Priority Gold’s sales strategy preys on economic anxiety. Sales agents, often posing as “financial advisors,” cold-call retirees and inexperienced investors, warning of impending market crashes and urging immediate action. One victim, a 72-year-old widow from Florida, described how an agent pressured her to liquidate her IRA into a $100,000 gold coin portfolio, claiming it was “IRS-approved” and “guaranteed to appreciate.” Instead, she received overpriced collectible coins with numismatic premiums exceeding 300% of spot value—coins she couldn’t sell without catastrophic losses.
Other clients report:
- Undelivered Metals: Payments processed, but gold or silver never shipped, with excuses ranging from “logistical delays” to “audit holds.”
- Bait Pricing: Advertised “spot price deals” replaced with marked-up products post-payment.
- Storage Scams: Fees for “secure vaults” that don’t exist, with forged documents masking theft.
Hidden Fees and Financial Manipulation
Contracts reviewed by investigators reveal layers of hidden costs:
- Commission Markups: Agents secretly inflate prices by 20-50%, pocketing the difference.
- Liquidation Penalties: Clients who attempt to sell back metals face “restocking fees” of 15-30%.
- Fraudulent Insurance: Policies charging 2% annually for “total loss coverage” that excludes most theft or damage scenarios.
A 2023 lawsuit filed in California alleges Priority Gold used a subsidiary, “Secure Wealth Holdings,” to funnel client funds into high-risk ventures like crypto and offshore real estate. Victims only discovered the diversion after account statements showed unexplained withdrawals.
The VIP Lounge: Exploiting Trust Through False Elitism
Priority Gold lures high-net-worth individuals with exclusive “VIP” memberships promising priority access to “off-market deals.” One investor paid $250,000 for a “limited-edition” gold bar series, only to learn the bars were generic bullion available elsewhere at half the price. Others were sold “rare” coins later appraised as counterfeits.
Former employees admit to scripts instructing agents to “create urgency by inventing scarcity,” such as fake auctions or “inventory alerts.” One agent confessed, “We were told to say, ‘The Fed is buying up all the gold—act now or miss out forever.’”
Regulatory Evasion and Legal Firestorms
Despite its claims of compliance, Priority Gold operates in a regulatory gray area:
- Unregistered Advisors: Sales agents lack FINRA licenses yet provide investment advice.
- SEC Warnings: The agency issued a 2022 alert about unregistered precious metals schemes, though Priority Gold wasn’t named explicitly.
- Class-Action Lawsuits: Three active cases accuse the firm of RICO violations, citing wire fraud and interstate trafficking of misrepresented goods.
The California Department of Financial Protection and Innovation (DFPI) is investigating Priority Gold for targeting non-English-speaking communities with misleading Spanish-language ads. Elderly Latino investors report being pressured into reverse mortgages to fund gold purchases.
Echoes of History: From Goldline to Priority Gold
Priority Gold’s tactics mirror the 2010 Goldline International scandal, where $80 million in overpriced coins were sold to seniors through fear-based marketing. Like Goldline, Priority Gold allegedly partners with conservative media outlets to air “documentaries” hyping economic collapse, driving panicked buyers to their phones.
Victim Testimonies: Broken Promises, Broken Lives
- Retired Teacher in Ohio: Lost $300,000 retirement savings after buying Priority Gold’s “inflation-proof” silver, now worth 40% less than paid.
- Small Business Owner in Texas: Paid $75,000 for gold bars never delivered; Priority Gold claimed he “failed identity verification” post-payment.
- Veteran in Arizona: Sold coins at a 60% loss after Priority Gold’s “buyback guarantee” required impossible purity certifications.
Many victims describe shame and isolation, with one stating, “I thought gold was safe. Now I’m hiding bankruptcy from my family.”
Red Flags Every Investor Ignored
- Fear-Based Marketing: Warnings of “hyperinflation” or “government confiscation” to trigger panic buying.
- Lack of Transparency: Refusal to provide real-time pricing or third-party audits of stored metals.
- Affiliation Scams: Fake endorsements from celebrities or political figures (e.g., “As seen on Fox News”).
- High-Pressure Tactics: Demands for immediate wire transfers to “lock in” prices.
Protecting Your Wealth: Critical Steps
- Verify Dealers: Check the Better Business Bureau (BBB) and U.S. Mint’s list of authorized purchasers.
- Demand Storage Proof: Insist on independent vault audits and verifiable insurance.
- Avoid Cold Calls: Legitimate dealers don’t aggressively solicit via phone or email.
- Report Fraud: File complaints with the FTC, CFPB, and state attorney general.
Conclusion: Fool’s Gold in Sherman Oaks
Priority Gold exemplifies how fear and greed can transform a legitimate investment into a predatory scheme. As regulators scramble and lawsuits mount, investors must recognize that not all that glitters is gold—sometimes, it’s just brass-plated deceit.
