For the 3rd time in the last few weeks, the Commodity Futures Trading Commission has taken action against precious metal investors. American Precious Metals LLC has been closed down, pending further inquiry. These corporations have been extending Ponzi scheme style investments in precious metals. Gold, silver, palladium, and other precious metals were sold, fraudulently, as investments by these companies. People have invested personal loans just to lose money.
What the suit against American Precious Metals LLC is about
The American Precious Metals LLC business is located in Florida. It is in Lake Worth, Fla., to be exact. The business used telemarketers to call and pressure consumers into purchasing gold, silver, platinum and palladium investments. The salespeople claimed the company would store the physical metals for the customer and even finance part of the purchase after a significant down payment was made. In exchange, the company promised several hundred percent returns on the customer’s investment. In essence, the company was offering short-term loans for investments in precious metals — but the company never really had the precious metals. Investment companies have to register with the Federal Trade Commission or CFTC. The business did not do so. The charges against the company consist of violations of the Telemarketing and Consumer Fraud and Abuse Prevention Act, as well as regulations controlling precious metals. Now the company doesn’t have access to its assets. They were all frozen.
The cost of precious metals
Precious metal investment scams have become more prevalent recently. This is because there has been a rise in the precious metals price tags. 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. Silver and other precious metals have experienced a similar price jump. Most precious metals are considered a “safe haven” for investments, which could trigger some of this. Some industry watchers have warned that gold and precious metals are getting close to bubble status, with costs that have expanded beyond their “real” value.
Protecting yourself when investing
Investing can be an activity fraught with dangers. Investing tools simply don’t exist. If you would like to invest in precious metal, purchase it and store it without help from anybody. Make sure whoever you invest with is at the Better Business Bureau. Always check there for information. Any business that cannot be verified with the FTC or Commodity Futures Trading Commission should not be invested in.
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