Precious Metals Investing
A comprehensive guide to precious metals investing. Have you come across any of these words and phrases recently? ‘Beware the Euro’, ‘Protect Your Investments’ ,’Currency Crash’, Five Gold Coins’, Limited Offer’, ‘Act Fast’. If so, you’re one of thousands of people who have just received a sales letter offering you the so-called opportunity to invest your savings in the ‘safe haven’ of gold. Because, the latest precious metals investing scam has landed.
Many entrepreneurs are worried about the effects of joining the euro and its possible impact on their savings. Gold is traditionally seen as a safe investment in uncertain times. Gold prices have just broken through the $300 an ounce barrier for the first time in two years and look set to rise further. That’s where the euro shysters come in: The latest con to hit these shores is the five gold coins scams. It’s very simple. You’re offered the opportunity to buy one gold coin for £50. A dazzling array of charts in the letter shows how that £50 gold coin could turn into a £9,887 investment over the years. But that £50 coin is just the hook! Introduce friends and relatives to this limited offer, and you’ll be given five gold coins for free. Five times £9,887? That’s a lot of money and makes precious metals investing a lucrative pursuit!
It’s Not A Square Deal… It’s A Pyramid!
The five gold coins offer is a scam. It’s a plain and simple pyramid scheme, working on the principle that each member receives a payment in kind for recruiting others to the scheme. Not only are these schemes illegal but they also have one fatal flaw – there aren’t enough people daft enough to keep the pyramid growing for long enough for you to profit from it.
You can spot these precious metals investing scams easily:
• Payment of a fee to join the scheme – purchasing your first £50 gold coin guarantees admission.
• High-priced products compared to others that are generally available – Money Hitman contacts in the jewellery trade estimate that these gold coins are really worth about 75p!
• Unsubstantiated claims about product performance and expectations – a genuine £50 gold coin might generate £9,887 eventually but yours is worth just 75p.
• The promise of huge returns for minimal effort – what could be easier than circulating the five gold coins letter to your family and friends too?
• Members have to keep recruiting new people to the scheme – but schemes like this collapse quickly, long before you see your five free gold coins!
This week, gold coins are the hottest scam. Next week it might be diamonds, silver or other precious metals or stones. But they’re all the same basic con – and you can be sure of one outcome. The con- artists will soon disappear with your money!
And It Gets Worse … £50 Leads You Into A £2,500 Scam
Be warned: The five gold coins scam doesn’t end with you losing just £50. If you reply to their first ‘offer’ the conmen will target you with a more advanced one. You’ll receive another letter offering you more expensive investment quality’ gold coins. They’ll point out how much you have made (in theory) from your initial small investment – and how much more you could make from precious metals investing on a much bigger scale.
What happens next is truly frightening: In return for a £2,500 investment and a £250 storage charge the con-artists will supposedly buy investment quality gold coins and bullion for you and store them away for you in an international bank. You may receive some seriously impressive documentation at this point to ‘guarantee’ your investment – but it’s fake. Soon after, the con-artists disappear with your money and move on to the next country.
How To Spot Any Investment Con
Spotting an investment con is incredibly simple. All you have to do is to identify the tell-tale signs of the con artist at work. The more you spot, the more you can be sure a big-time shyster is targeting you:
• The guarantee of spectacular returns – always apply the ‘too good to be true’ test.
• The promise of risk-free investing – all investing comes with some risks, and precious metals investing is high- risk.
• High-pressure selling tactics – genuine investment opportunities don’t involve signing up today…or else!
• A reluctance to provide independent verification and the opportunity to talk to fellow investors – con-artists know they can’t offer either of these.
• Investment advice based on inside information and not-yet-made public- news – usually highly illegal and the sort of knowledge that any sensible person would keep to themselves!
• Investments that involve overseas investing, foreign organizations and offshore banks – a sure-fire sign that you’re not covered by UK financial protection laws.
Of course, the easiest way of protecting yourself from scams like these is also very simple. As soon as you receive anything like the five gold coins letter, simply tear it in two and throw it away – and keep your money in your pocket!
For more investing in precious metals information keeping watching this space!
Precious metals investing brought to you by Money Hitman.