Be on the lookout for phony promises of easy profits from
rising prices in gold, silver, or other precious metals.
Helena, Montana—The Commissioner of Securities and Insurance (CSI) warns Montanans to beware of precious metals scams that are designed to drain retirement funds. These metals include gold, silver, palladium, and platinum. Scammers notify you about tricky promises of easy profits from rising prices of these precious metals. Don’t let the lepre“con” steal your hard-earned pot of gold.
Deputy Securities Commissioner Brett Olin warns, “When investing in precious metals, make sure you know whom you are buying from and where the metals are stored if you are not holding them yourselves. Additionally, you should understand the fees relative to the settlement price you are paying. For example, if you invest $100 in gold, but the seller is getting a 35% commission, you are only getting $65 worth of gold.”
BEWARE OF RED FLAGS FOR PRECIOUS METALS OFFERS WHEN A DEALER:
- Makes unsolicited calls to pitch precious metals offers
- Provides an agreement that does not identify the financial institution or bank that will be loaning you money
- Does not identify in their agreement where the physical metal is located
- Claims to deliver the physical metal to an overseas storage facility or bank
- Makes it difficult to verify their license
- Fails to provide proof of their licensure from a government agency
- Offers highly complex purchasing techniques for unusually high returns
- Claims you should invest in precious metals because of limited supply
Before investing in precious metals, verify the dealer is registered. If the dealer is registered, ask how they are paid for their services, and how their product meets your financial needs. Be sure to verify the value of the precious metals before purchasing, using a reputable source. Always keep your guard up, and if you ever question whether something is too good to be true, it probably is. For any questions or if you think you or a loved one have fallen victim to a precious metals scam, contact the CSI Securities Division at 406.444.3815.
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The Montana State Auditor, Commissioner of Securities and Insurance is the state regulator of the insurance and securities industries for the state of Montana. The State Auditor is also an ex officio member of the Montana Board of Land Commissioners. Troy Downing was elected State Auditor in 2020.
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