Precious metals fraud can put your future at risk — don’t let it
You trust an advisor or metals dealer to help you earn money by investing in gold, silver, platinum or palladium. Many investors see these precious metals as potentially less risky than the volatile stock market. After all, metals are tangible and investors may be lulled into believing that they never lose value.
But it turns out that many people have lost their retirement nest egg, life savings, or investment funds because of broker misconduct or fraud. Did an advisor or company urge you to invest in precious metals based on false promises of high profits with low risk? Did it turn out they never actually bought and delivered the metals to you? If so, then you may have a precious metals fraud case.
Precious metal fraud devastates unsuspecting victims
Even very savvy commodities investors may have a hard time detecting fraud and proving they were exploited. If you don't understand why you have lost a lot of money, or you suspect you were a victim of precious metals fraud, then contact Sokolove Law for a free case evaluation.
The following information may help you understand how precious metals fraud is perpetrated.
How precious metals fraud works
People and companies commit precious metals fraud by promising profits that are never realized. In some cases, inexperienced investors have received cold calls urging them to place their savings into low-risk, high-return precious metals investments. What fraudulent brokers and dealers don't disclose are the enormous margin account fees and excessive commissions investors may be charged. Brokers have the responsibility to act in their client’s best interest. Yet, customers have lost all or much of their investments through the negligence and misrepresentation of precious metals brokers.
Watch for these signs of precious metals fraud:
- The precious metals dealer or company advertises through radio, TV, or the Web, or cold calls you with a high-pressure sales pitch.
- The dealer claims to work with a well-known and reputable firm, or possesses unique credentials or experience that cannot be verified.
- Sales tactics that involve claiming there is a special offer available, or that only limited amounts of the metals remain.
- Claims that, for a small amount of money, an investor can make a large profit.
- Offers that involve speculating on the rise or fall of precious metals prices.
- Dealers who offer to finance the purchase of the precious metals — and then charge unreasonable interest in the fees.
- The seller never actually offers to deliver you the metal — they claim to hold it for you, instead.
- The fraudster often charges you fees, commissions, interest, and storage costs that weren't explained up-front.
- The deal is complex and it's hard for you to understand just how you profit.
If you suspect precious metals fraud, an experienced precious metals fraud attorney may be able to help.
If you were the victim of precious metals fraud, you may be able to recover some or all of your losses. It costs you nothing to speak to our legal team at Sokolove Law for a legal consultation.
