The Hide and Seek Game of Investing in Precious Metals
Investing in gold and silver may sound like a safe, low-risk way to make big money. But hidden fees, as well as a dealer’s failure to reveal how risky this type of investment really is, could cost you dearly.
The FTC recently announced a settlement with precious metals dealers, who had promised consumers big payoffs through silver and gold investments. The problem? The FTC alleged that, using fancy brochures and high-pressure sales pitches, the dealers convinced people to buy precious metals on credit. The FTC also charged that the dealers loaned people money to buy the gold or silver without telling potential investors upfront how much everything would cost, what they were required to pay, or the effect that up and down markets could have on the metals value.
According to the FTC, when the buyers got their account statements, they were surprised by eye-popping commissions, interest and administration fees; and caught off-guard by exorbitant financing charges on the loan many didn’t realize they had taken out.
So what message can you take away from this settlement? A big one. Before you decide to invest in precious metals, consult a reputable financial advisor who has specialized knowledge in this type of investment. Research the company online for customer feedback, including complaints. Avoid any sales people who use high-pressure pitches. People who say you have to “act now” want to get you to act before you think it through. Take your time.
For more information about the potential pitfalls of investing in precious metals, read Investing in Bullion and Bullion Coins, and Investment Risks. If you spot a scam, file a complaint with the FTC.
Comments
This is a question of better late than never.
I have just seen this e-mail for the first time. I will be eternally grateful to the FTC
Any adverse credit report as a direct result of ID Theft and scams is legally without merit. Any business scam should be deleted. Contacts that have been bought and given derogatory function on my account should be deleted. The same goes for any Government employee who is found guilty of any of the crimes listed earlier.
Right you are when they imagined the rarity of gold(AU) and its rising future price but not got the real research of where its biggest placers deposits ! . Thanks .
Leave a Comment
Commenting PolicyRead Our Privacy Act Statement
It is your choice whether to submit a comment. If you do, you must create a user name, or we will not post your comment. The Federal Trade Commission Act authorizes this information collection for purposes of managing online comments. Comments and user names are part of the Federal Trade Commission’s (FTC) public records system, and user names also are part of the FTC’s computer user records system. We may routinely use these records as described in the FTC’s Privacy Act system notices. For more information on how the FTC handles information that we collect, please read our privacy policy.