by Clint Siegner, Gold Seek:
One of the primary reasons that investors turn to physical gold and silver is to eliminate counterparty risk. Stock markets can melt down, banks and brokerages can close, the currency can hyperinflate, and the federal government can default on Treasury debt or all of the above.
When a person owns bullion and keeps personal possession of it, it will retain value. Its purchasing power could even surge.
Metals investors aren’t relying upon the smooth functioning of the financial system and the good stewardship of corporate executives and political leaders – thank goodness.
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The only steward is the individual investor, and that is a responsibility that should not be taken lightly. They must stay alert and think carefully about safeguarding their investment.
Secure Your Gold & Silver and Keep Your Mouth Shut
Metals investors are naturally aware it is important to keep their coins, rounds, and bars in a safe place – whether it be in a home safe or hidden away. They need also to know that none of these methods are foolproof.
If thieves know a person owns bullion, it can be stolen. So, nothing is more important than an investor keeping his or her mouth shut. There are plenty of guides available with methods for safekeeping online – see here for example.
In this article, though, we’d like to focus investors on a less obvious threat.
The number of scams involving precious metals is proliferating. Criminals have always targeted gold and silver because pretty much nothing is easier to fence at or near full market value. Con artists know the promise of gold can play to a victim’s greed.
Many laugh off the idea of being scammed. They believe the only people falling for one of these schemes are rubes dumb enough to believe an email that says they are the only heir to some Nigerian prince’s fortune.
It’s no laughing matter. Fraud should be thought of as an industry.
There are vast numbers of criminals working in the industry full-time. Nobody is beyond their reach.
Some of these crooks are smart and innovative. If they can get access to an information source such as someone’s email account, they can craft a scheme sophisticated enough to fool anybody.
There are also con artists who will spend months, or even years, cultivating a relationship with the victim and setting up the heist.
Gold Bar Scam Sweeping the Nation
Scams can be complex and, therefore, very convincing. For example, there is a pervasive gold-related scheme currently operating which has recently conned Americans out of hundreds of millions of dollars.
To begin with, it’s important to mention that the targets of the following scheme are usually not owners of gold at the outset.
They are simply folks with cash in the bank.
The recent scheme starts with an email or text message.
Victims are told their identity has been stolen and that they must call for assistance.
If they engage, they will have a phone conversation with someone who explains their stolen identity has been used to create a number of bank accounts, which, in turn, have been used in very nefarious activity. They are warned that a federal investigation is already underway.
Shortly thereafter, they receive a call from someone else posing as the investigator. They are warned the government is getting ready to seize their bank or brokerage accounts.
The “investigator” instructs the victim to withdraw the funds to acquire gold (usually kilo gold bars) until the matter is resolved.
Victims Told to Give Their Gold to Fake Government Officials
Throughout the process, the victim is supplied with official-looking documents and will spend hours on the phone with multiple people who pretend to work at their bank and various government agencies such as the FBI and FTC.
By the end of the scheme, people are so convinced the story is real that they actually turn the newly acquired gold bullion over to someone they believe is a government official for safekeeping. It is, unfortunately, the last they will ever see of it.
Investors should trust people with information about their precious metals holdings very sparingly. If approached, folks should independently verify the people involved are who they say they are.
