For the third time in the last few weeks, the CFTC has taken action against precious metal investors. American Precious Metals LLC has been closed down, pending further investigation. Companies have been offering fraudulent investments in gold, silver and other precious metals. Individuals have invested personal loans just to lose money.
American Precious Metals LLC lawsuit
American Precious Metals LLC was a business based in Lake Worth, Florida. The company used telemarketers to call and pressure customers into purchasing gold, silver, platinum and palladium investments. The consumer could get financing from the business, according to the salespeople, and would get the physical metals stored also. A huge down payment was required though. The customer would get a several hundred percent return on the investment from the business though. In essence, the business was offering short-term loans for investments in precious metals -- but the company never really had the precious metals. The business also never registered with the FTC or CFTC as an investment business. The business violated the Telemarketing and Consumer Fraud and Abuse Prevention Act and didn't follow precious metal regulation. The company's assets have been frozen now.
Precious metals costing more
The rise of precious metal costs has caused there to be many precious metal investment scams. There has been a huge increase in gold prices in the last year. They have gone to over $1,500 from being at $1,200. These price increases have been seen in other precious metals also. Most precious metals are considered a "safe haven" for investments, which could cause some of this. Some say the prices of precious metals are so far above their "real" value that they're getting close to bubble status.
Invest with some protection
Investing could be an activity fraught with dangers. There are do-it-yourself investing tools, and you can purchase precious metals and store them yourself. Make sure whoever you invest with is at the Better Business Bureau. Always check there for information. Any business that can't be verified with the FTC or CFTC should not be invested in.
American Precious Metals LLC lawsuit
American Precious Metals LLC was a business based in Lake Worth, Florida. The company used telemarketers to call and pressure customers into purchasing gold, silver, platinum and palladium investments. The consumer could get financing from the business, according to the salespeople, and would get the physical metals stored also. A huge down payment was required though. The customer would get a several hundred percent return on the investment from the business though. In essence, the business was offering short-term loans for investments in precious metals -- but the company never really had the precious metals. The business also never registered with the FTC or CFTC as an investment business. The business violated the Telemarketing and Consumer Fraud and Abuse Prevention Act and didn't follow precious metal regulation. The company's assets have been frozen now.
Precious metals costing more
The rise of precious metal costs has caused there to be many precious metal investment scams. There has been a huge increase in gold prices in the last year. They have gone to over $1,500 from being at $1,200. These price increases have been seen in other precious metals also. Most precious metals are considered a "safe haven" for investments, which could cause some of this. Some say the prices of precious metals are so far above their "real" value that they're getting close to bubble status.
Invest with some protection
Investing could be an activity fraught with dangers. There are do-it-yourself investing tools, and you can purchase precious metals and store them yourself. Make sure whoever you invest with is at the Better Business Bureau. Always check there for information. Any business that can't be verified with the FTC or CFTC should not be invested in.
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