Skip to comments.FTC WARNED INVESTORS OFF HUGE DOLLAR GAINS/TAKE 3
Posted on 01/27/2005 7:29:01 AM PST by FreeMarket1
FTC WARNED INVESTORS OFF HUGE DOLLAR GAINS/TAKE 3
Jan 27, 2005 - FreeMarketNews.com
by Chris Mack
Washingtons regulators are supposed to stand up for the little guy.
Maybe they also help the little guy stay that way.
In the last decade, under the pretense of protecting people from losing their shirts, the Federal Trade Commission (FTC) released warnings about indium and other strategic metal investing scams. Some of these warnings havent been updated since - and in any event they are all over the Net.
Anyone with a computer and Google can type in fraud and indium and come up with the following:
- A recent scam involved investment in a metal called indium. Indium is a soft metal found in zinc and copper ores, and is captured during the refining process. It has a variety of industrial uses, such as in fiber-optic communications systems, digital watches and as a transparent glaze on some energy efficient windows. There is not, however, (and never has been) any investment market for indium. (Illinois Securities Department website)
-What is indium? You may learn the hard way if someone calls and says, 'This metal is the hottest investment today. Invest immediately!' If you do invest, you may join a growing number who have lost thousands of dollars to telemarketing firms that sell 'strategic metals,' such as indium, germanium, selenium, or cadmium. Many of these firms are located in Canada. The telemarketers have sold the metals at prices that far exceed their worth. (Facts for Consumers from the Federal Trade Commission)
-The staff of the Commission currently is preparing a consumer alert concerning Canadian telemarketers who sell the metal indium as an investment. Consumer information alerts like these are distributed to at least 10,000 key information sources throughout the United States, including state and local government offices, national consumer and business organizations, Better Business Bureaus, and universities. (Prepared statement of Federal Trade Commission presented by the New York Regional Office)
Its difficult to tell when the warnings were issued, and some of the pages on the Net have current copyrights, making it even more confusing for the average viewer who might logically conclude they are of recent vintage.
Yet even when the FTC was issuing them and most appear to have been floated in the 90s - indium prices were volatile.
And in this decade they have exploded tenfold.
On Thursday, January 26, Reuters had this to report: "Indium prices rose to their highest levels for 65 years ... Free-market prices were indicated at $915/970/kg, up from a previous $875/925 kg. A year ago the metal was just under $600, having soared from depressed levels of $60/kg in 2002."
According to Reuters, a shortage of indium has occurred because of Asian technology demands. Indium saw a large price rise during World War II and also during the 1970s because it is used for many military applications.
While prices subside any time soon? Reuters pointed out that, A high indium price, while profitable for suppliers, is unlikely to meet much resistance from flat screen manufacturers as the metal typically accounts for less than half a percent of the cost of an LCD television set.
In other words, a large rise............Full Article www.FreeMarketNews.com
my initial reaction is: Who in their right mind would invest $$$$ on the basis of a phone call?
So I guess that big check I sent to my outium dealer in Nigeria is down the drain too.
I do it with my bookie on a weekly basis.
Here's another "legit" metal, look at that 5-year chart, then view one-year chart....it is all in the timing...
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