Three separate precious metals investing businesses are being looked into by the CFTC. American Precious Metals, LLC is the latest company to be shut down in this review of precious metal investments. 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 companies. People have invested personal loans just to lose money.
Case against American Precious Metals LLC
American Precious Metals LLC was a business based in Lake Worth, Florida. It sold investments in platinum, palladium, silver and gold to consumers. It used telemarketers to do this. The salespeople claimed that the company would store the physical metals for the consumer and even finance part of the purchase after a significant down payment was made. The consumer would get a several hundred percent return on the investment from the company though. The company gave people short-term loans for investment in very special metals. Still, these metals did not really exist. The company also never registered with the FTC or CFTC as an investment business. The charges against the business include violations of the Telemarketing and Consumer Fraud and Abuse Prevention Act, also as regulations controlling precious metals. The company's assets have been frozen now.
Precious metals costing more
The increasing number of fraudulent precious metals investment scams has been boosted by the quickly rising price of most precious metals. There has been a huge increase in gold costs 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. This is partially because precious metals are often viewed as a "safe haven" when worldwide currencies are weakening. There have been many to warn against getting involved in precious metal investing. They say that it is getting close to bubble status since the costs are far above the "real" value of the metals.
The brightest way to invest
There are many issues that can come with investing. There are do-it-yourself investing tools, and also you can purchase precious metals and store them yourself. Go to the Better Business Bureau if you're going to invest, not matter how you do it. Any business that can't be verified with the Federal Trade Commission or Commodity Futures Trading Commission should not be invested in.
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