Three separate precious metals investing businesses are being looked into by the CFTC. The latest business to be closed down is American Precious Metals, LLC. These corporations have been offering Ponzi scheme style investments in precious metals. Gold, silver, palladium, and other precious metals were sold, fraudulently, as investments by these corporations. Individuals have invested personal loans just to lose money.
American Precious Metals LLC lawsuit
American Precious Metals LLC was a company based in Lake Worth, Florida. The business used telemarketers to call and pressure consumers into purchasing gold, silver, platinum and palladium investments. With a huge down payment, the company would store physical metals and finance the purchase for the customer. The company also would give a huge return on the investment. They promised several hundred percent returns. The business offered short-term loans for investments in precious metals that never really existed in the company though. Investment companies have to register with the FTC or CFTC. The business didn't do so. The charges against the business contain violations of the Telemarketing and Customer Fraud and Abuse Prevention Act, also as regulations controlling precious metals. All the assets of the business have also been frozen.
Rising precious metal prices
The rise of precious metal prices has caused there to be many precious metal investment scams. In the last year, the per-ounce price of gold has gone from less than $1,200 to more than $1,500. Silver and other precious metals have experienced a similar price jump. 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 are getting close to bubble status.
Protecting yourself when investing
Investing isn't always safe. It could be dangerous in fact. There are do-it-yourself investing tools, and you also can purchase precious metals and store them yourself. Regardless how you choose to invest, always work with businesses that have been vetted by the Better Business Bureau. Any company that can't be verified with the FTC or Commodity Futures Trading Commission should not be invested in.
American Precious Metals LLC lawsuit
American Precious Metals LLC was a company based in Lake Worth, Florida. The business used telemarketers to call and pressure consumers into purchasing gold, silver, platinum and palladium investments. With a huge down payment, the company would store physical metals and finance the purchase for the customer. The company also would give a huge return on the investment. They promised several hundred percent returns. The business offered short-term loans for investments in precious metals that never really existed in the company though. Investment companies have to register with the FTC or CFTC. The business didn't do so. The charges against the business contain violations of the Telemarketing and Customer Fraud and Abuse Prevention Act, also as regulations controlling precious metals. All the assets of the business have also been frozen.
Rising precious metal prices
The rise of precious metal prices has caused there to be many precious metal investment scams. In the last year, the per-ounce price of gold has gone from less than $1,200 to more than $1,500. Silver and other precious metals have experienced a similar price jump. 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 are getting close to bubble status.
Protecting yourself when investing
Investing isn't always safe. It could be dangerous in fact. There are do-it-yourself investing tools, and you also can purchase precious metals and store them yourself. Regardless how you choose to invest, always work with businesses that have been vetted by the Better Business Bureau. Any company that can't be verified with the FTC or Commodity Futures Trading Commission should not be invested in.
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