Silver and golden opportunities?

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You may have seen TV ads that claim buying gold is an easy way to earn easy profits, or build a safe retirement investment. While buying gold might help diversify your investment portfolio, is it always a good way to build your retirement? Or might it be an investment scheme disguised as a golden opportunity?

According to a complaint filed by the FTC, DiscountMetalBrokers, Inc. advertised itself as a legitimate seller of gold and silver, yet failed to deliver on its promises. In national TV ads, the company portrayed gold as a safe retirement investment, urging people to be “smart investors” and “protect themselves” because “in today’s economy, you need to own gold and silver.” DiscountMetalBrokers, Inc. then flashed their toll-free number for people to call.

Here’s what the FTC says happened next: once people called, the company asked callers to pay a deposit by check or credit card. They then told callers to send the balance of the money by check or wire transfer. The FTC says that, even though company employees reassured people their orders would ship soon, hundreds of people never received the promised gold or silver. Plus, they lost the money they paid to the company.

If a seller presses you to wire money, that’s a sign of a scam. And, if you’re thinking of investing, learn about what questions to ask and what to avoid.

Have you spotted a scam? Report it to the FTC.

The last paragraph of this post has been revised to say, “If a seller presses you to wire money, that’s a sign of a scam.”

Blog Topics: 
Money & Credit

Comments

There are only a few reliable places to buy gold and silver.

Where is a copy of the complaint? If not available, what court was it filed in and what is the case #? Are all the employees named in the complaint? If not, why not? Does the FTC maintain a searchable database of all people sued in scams? If not, why not? Are these people being criminally prosecuted, or is this just a civil case? If not criminally prosecuted, why not?

Here's the link to the complaint from the first paragraph of the press release.

Additionally, they show full ounce gold pieces at what seems to be an incredible price. Actually the pieces are just 1/10th oz.

Thank you for gold/silver scan tips

Is buying gold or silver coins from Lear Capitol in Calif. an honest company?

This FTC article about investing in bullion and coins has important information about what to do before you invest. Read about signs of a scam, and get links to other agencies.

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