Precious metals investors need to be careful to avoid scams. Some have been around for a long time in different forms. Others are newly proliferating now that gold is hitting records.
Last week, the Commodity Futures Trading Commission announced it had obtained a judgment in federal court against a predatory firm called Regal Assets:
Regal Assets solicited customers to transfer funds primarily from their tax-deferred retirement accounts to purchase precious metals from Regal Assets through self-directed IRAs. Rather than using all of the customers’ funds to purchase precious metals, the defendants misappropriated more than $21 million from more than 120 customers.
Money Metals has long been aware of Regal Assets’ corrupt practices. At one point, we took legal action against one of its affiliates for fraud and unfair trade practices after it published libelous, negative online “reviews” about our company to promote Regal Assets.
While the victims of the multi-million dollar fraud at Regal Assets can now seek restitution, they may never be made whole. (Best we can tell, the government never located the owner, Tyler Gallagher, who reportedly fled the country.) Nor will the victims of countless other scams, whose perpetrators may never be brought to justice.
Your best protection against getting fleeced when buying precious metals is to ignore the slick pitches that sound too good to be true.
Be especially sure to avoid doing business with dealers who advertise on cable TV using celebrity spokesmen wanting to send you a free investor kit. (You'll become red meat to a commission-based sales team that will pursue you relentlessly until you buy their ripoff proofs, commoratives, special-issue coins, and supposed rarities.)
Money Metals was specifically founded in 2010 in direct opposition to the high-pressure boiler room operations that sell investors on high-premium 'collectibles' rather than fairly and tranparently priced bullion.
Due your own due diligence. And stick with bullion-focused dealers who have built up a reputation for stellar customer service and exhibit a genuine commitment to sound money principles.
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