Beware Of Promises Of Easy Profits From Buying Precious Metals And Other Commodities

Commodity Futures Trading Commission ^ | 1/29/2006 | Public Affairs

[B4Ranch]

Beware!

[moog]

Beware!

Is that beware of you or the gold? :)

[Brilliant]

Gold does not produce anything. A share of GE does--dividends, earnings.

[Bubba]

Beware Of Promises Of Easy Profits From Buying Precious Metals And Other Commodities... Should simply read... BEWARE OF PROMISES OF EASY PROFITS!

[coloradan]

A dollar does not produce anything. And a share of a buggywhip manufacturer does, well, it used to, provide dividends. But they're all out of business now, having seen their profits vanish in the face of the automobile. Gold, however, is still here.

[FreePaul]

Years ago I was solicited pretty heavily by a company, I believe in Florida, that had a get rich scheme using gold. I don't remember the details but they bought gold in the investor's name and stored it. I was suspicious and didn't invest. Over several years I tracked their fortunes and found that I could have made a lot by selling at the proper time. About the time I was kicking myself for not investing the whole thing collapsed. Seems that they had only a very small amount of gold to display to investors and potential investors. No telling where all of the investor's money went.

[coloradan]

Indeed, companies often discourage customers from taking delivery of the metal;

Sounds like the CRIMEX, er, COMEX.

[coloradan]

Hey, when they say they will keep the gold for you, they meant they are going to keep it.

[TADSLOS]

Been there, done that, circa 1980. Victim of securities fraud for purchasing gold through a brokerage firm. Broker was eventually caught, tried and convicted. What money was recovered went to the large investors first (100K+). I never recovered a dime of my 2K investment.

[fhlh]

Aren't these the same companies that have radio ads with Savage and pop-ups and emails with NewsMax.com?

[B4Ranch]

I'm not known for making false promises. Beware of paper gold.

[moog]

'm not known for making false promises. Beware of paper gold.

Just wondering since you're a bit of a "flake" like me:).

[B4Ranch]

You will find these companies with addresses on Wall Street, in DC next to fine law offices, or with PO Boxes on an email. Research and verify just who you are investing with. Check with the proper agencies to see if there has been previous complaints or if they are currently defendants in upcoming trials. In other words, use your head and the brains inside it before jumping at wild promises.

[Neanderthal]

"Years ago I was solicited pretty heavily by a company, I believe in Florida, that had a get rich scheme using gold. I don't remember the details but they bought gold in the investor's name and stored it. I was suspicious and didn't invest. Over several years I tracked their fortunes and found that I could have made a lot by selling at the proper time. About the time I was kicking myself for not investing the whole thing collapsed. Seems that they had only a very small amount of gold to display to investors and potential investors. No telling where all of the investor's money went."

I remember that, too. It was the 1980's and they were in Ft. Lauderdale. Big ads in the Chicago newspapers almost every day, for months or maybe years. Then BAM!! They were gone and all the knuckleheads that had fallen for the scam were SOL. Everybody knew this firm because of the barrage of newspaper advertising. They might have been on the radio too.

[sergeantdave]

I get these pump & dump scams everyday.

"WE CALLED IT AT .38 CENTS NOW ITS AT $2.40!
WITH ALOT MORE ROOM TO MOVE!

...blah. blah. blah.

If these guys are so rich and so smart, why do they need my money?

[dfwgator]

I invest in the financial standard of the future--Zinc.

[B4Ranch]

I would diversify if I was you. Never put all your eggs in one basket.

[concrete is my business]

Lots of good commodity stocks are traded in Canada BUT Canada is also well known for penny stock boiler rooms that will take your money faster than they do in Las Vegas.

IMHO when the gold bugs get into the commodity market it is starting to over heat a little.

[Junior_G]

I invest in the financial standard of the future--Zinc.

Ah, but you're wrong about the future viability of zinc. I have invested my life's savings into aluminum.

[Texan]

My daughter's inlaws lost $40,000. buying gold coins from a con man in AZ who advertised on the radio.

Evidently his spiel had a "Christian" theme and he advertised on a Christian radio station and they fell for it. Sad.