The CFTC, a part of the Federal Trade Commission, is taking action against 3 separate companies. Lawsuits has been filed and announced in the last few days. The latest company to be closed down is American Precious Metals, LLC. These companies have been extending Ponzi scheme style investments in precious metals. Gold, silver, palladium, and other precious metals were sold, fraudulently, as investments by these businesses. People have invested personal loans just to lose money.
Suit against American Precious Metals LLC occurring
American Precious Metals LLC was a business based in Lake Worth, Florida. The business used telemarketers to call and pressure customers 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 consumer. The customer 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 didn't really exist. Investment companies have to register with the FTC or Commodity Futures Trading Commission. The business did not do so. Regulation on precious metal was not followed by the company. It also violated the Telemarketing and customer Fraud and Abuse Prevention Act. Now the company doesn't have access to its assets. They were all frozen.
Rising precious metal prices
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. Silver and other precious metals have experienced a comparable price jump. Some of this increase is from the fact that precious metals are considered a "safe haven." You can never go wrong investing in it. 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.
Do not invest in the wrong thing
Investing can be an activity fraught with dangers. Investing tools simply do not exist. If you would like to invest in precious metal, purchase it and store it without help from any person. Make sure whoever you invest with is at the Better Business Bureau. Always check there for information. You need to also never invest in any precious metals business that you can't independently verify with the FTC or CFTC.
Suit against American Precious Metals LLC occurring
American Precious Metals LLC was a business based in Lake Worth, Florida. The business used telemarketers to call and pressure customers 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 consumer. The customer 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 didn't really exist. Investment companies have to register with the FTC or Commodity Futures Trading Commission. The business did not do so. Regulation on precious metal was not followed by the company. It also violated the Telemarketing and customer Fraud and Abuse Prevention Act. Now the company doesn't have access to its assets. They were all frozen.
Rising precious metal prices
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. Silver and other precious metals have experienced a comparable price jump. Some of this increase is from the fact that precious metals are considered a "safe haven." You can never go wrong investing in it. 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.
Do not invest in the wrong thing
Investing can be an activity fraught with dangers. Investing tools simply do not exist. If you would like to invest in precious metal, purchase it and store it without help from any person. Make sure whoever you invest with is at the Better Business Bureau. Always check there for information. You need to also never invest in any precious metals business that you can't independently verify with the FTC or CFTC.
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