How Can I Avoid Getting Involved in a Gold Investment Scam?
In the last few years, we have seen an increasing number of investment
scam victims who have been taken in by slick gold and mineral scams. While
there are plenty of legitimate gold, mineral, and precious metal investments
out there, investors should be careful not to let flashy advertising or
celebrity endorsements cloud the decision-making process. While not every
gold or precious metals investment is a scam,
you should be skeptical if you spot these warning signs:
- The offer comes through unsolicited telephone calls, letters, and emails.
- You feel harassed or pressured to invest right away.
- You feel pressured to invest in an investment that differs from the gold
- You are “guaranteed” a very high rate of return.
- You aren’t told about fees, storage costs, and commissions associated
with the investment.
- The company is located overseas or does not provide a physical address.
As with any investment, it is important to spend time doing your research
before you choose to put money into a gold investment—no matter
how large, recognizable, or reputable the gold seller seems. As an example,
precious metals dealer
Goldline International—which widely advertised its gold bullion and coins on television
and radio as a completely “safe” alternative—was involved
in an investigation and settlement last year for its allegedly false and
misleading statements to customers and alleged bait-and-switch advertising tactics.
What Investors Should Know About Gold & Mineral Investment Scams
Attracted to the idea of investing in metals? Here are some things you
Many potentially risky gold investments are marketed by playing on your fears.
While not every gold or mineral investment is a scam, you should be suspicious
of any promoter or promotional material that spends more time creating
a sense of looming economic collapse than giving clear information about
the details of the investment.
Some fraudulent investment schemes talk about investments in gold to build trust.
Most people think about gold as a safe and stable investment. However,
there are many ways to invest in gold that are extremely risky, unregulated,
or easy to fake. Some con artists rely on your belief in the safety of
gold to sell you on a risky investment or outright scam, so be sure to
always read the “fine print” and do some background research.
Some con artists lure you in with the excitement of discovery.
Especially in cases where the con artist is promoting an alleged gold
mine discovery or stash of ancient gold coins, the idea is to get you
so wrapped up in the excitement of a purportedly “once in a lifetime”
opportunity that you skip checking out the facts.
Investments Promoted on Radio
"My elderly parents have become very interested in a gold investment
they heard about on the radio, but I’m concerned it’s a scam.
How can I talk to them about it?"
In the US, the elderly are a prime target for
gold investment fraud, and it’s important to talk to your parents openly if you fear they
may be falling for a scam. You know your parents better than we do, but
we can suggest some approaches that have worked for others in the past.
Here are a few ideas to get started:
Order a copy of our free book,
Five Signs of Investment Fraud...And What to Do if it’s Happened to You,
to share with your parents and open the discussion.
- Approach your parents with recent news about other gold scams.
Show your parents how to find and use online research tools
- For example, FINRA’s BrokerCheck and Investor Alerts, or the SEC’s
- For more information about spotting the signs of gold investment fraud,
read related FAQ.
If you have already become the victim of a gold investment scam, it may
be possible to recover your investment losses. Reach out to an investment
fraud lawyer with Meyer Wilson today to learn more about your rights and options.
Just give us a call or fill out the confidential