Baron, Herskowitz, and Cohen is currently investigating several gold coin sellers for potential violations of FTC and CFTC regulations. These companies are suspected of charging customers “spreads” that exceed the amounts specified in their purchase orders. If you or someone you know has invested $100,000 or more in gold through any of the following companies, we would like to hear from you:
- American Hartford Gold
- Birch Gold
- Gold Co.
- US Gold Bureau
Do you think you may have been a victim of gold coin fraud? If you’ve dealt with any of these companies, please reach out to Baron, Herskowitz, and Cohen. Speaking with us comes at no cost, and there is no obligation. Our dedicated attorneys are committed to helping you protect your investments and seek justice. Contact us today for a consultation.
The Reality of Gold Scams
In today’s unpredictable economic landscape, gold is often touted as a safeguard against inflation and financial instability. If you frequently watch political TV channels or listen to talk radio, you’ve likely encountered commercials promoting gold investments. These ads, often featuring veteran actors or game show hosts, urge viewers to buy gold as a protection against inflation. However, while gold can be a valuable addition to an investment portfolio, it’s crucial to be aware of potential scams in this market.
While these commercials can be persuasive, they often hide the true cost of their offerings. Many companies charge exorbitant premiums for gold coins, sometimes two to four times the actual value of the gold. This practice makes it nearly impossible for investors to earn a profit when they sell their gold. According to the Commodity Futures Trading Commission (CFTC), markups for collectible gold coins can range from 40% to 200% above the spot price.
Types of Gold Scams
Gold scams take many forms, each designed to exploit different vulnerabilities of investors. Here are some common types:
- Impersonating Reputable Companies or Individuals: Scammers often pose as well-known gold dealers or investment gurus, exploiting trust and familiarity, leveraging social media platforms to make their schemes seem credible. Be wary of online posts or messages from seemingly reputable sources offering gold deals.
- Creating Fake Websites or Apps: Advancements in digital technology have allowed scammers to develop highly convincing fake websites or apps that resemble legitimate gold investment companies. These fraudulent platforms not only swindle investors out of their money but often also steal personal information. Always ensure the authenticity of websites and applications before conducting any transactions.
- Using Emotional Manipulation: Scammers use psychological tricks to manipulate emotions, often inciting fear or urgency. They create scenarios that prompt impulsive decisions, leading to significant financial losses. It’s vital to approach gold investment opportunities with skepticism and due diligence.
Warning Signs of Gold Scams
The FBI identifies several red flags that consumers should be aware of to avoid falling victim to gold scams:
- Posing as Tech Support or Government Employees: Scammers often masquerade as tech support or government officials, using a multi-layered approach. They might initially present themselves as a technology company representative, then switch to a financial institution, and finally, pose as a U.S. government official.
- Claims of Hacked Financial Accounts: Scammers may inform victims that their financial accounts have been compromised or are at risk. They then instruct the victims to liquidate their assets into cash or purchase precious metals like gold or silver. In some cases, scammers direct victims to wire funds to a metal dealer who will ship the precious metals to their homes.
- Retrieving Assets via Couriers: Once victims have obtained the cash or precious metals, scammers arrange for couriers to pick up the items either at the victims’ homes or at public locations. They may provide a passcode, such as the serial number of a U.S. dollar bill, for the victim to verify the transaction. However, once the assets are handed over, victims typically never hear back from the scammers and lose all their money.
Navigating the Complexities of Gold Investment
Investing your money wisely is always a challenging task. Protecting your assets from fraud, particularly in the realm of broker and securities fraud, necessitates access to accurate and up-to-date information. Unfortunately, obtaining trustworthy information can be difficult, especially if the source might be the one committing the fraud. Gold scams come in many forms, highlighting the need for vigilance in the gold investment sector. These can include impersonating reputable companies, creating fake websites, and using emotional manipulation. Key methods to protect yourself from gold scams include recognizing fraudulent sales pitches, understanding common persuasion tactics, and conducting thorough due diligence before engaging in any gold investment activities.
At Baron, Herskowitz, and Cohen, we are dedicated to helping you navigate the complexities of gold investments and protect your assets from fraud. If you suspect you’ve been a victim of a gold scam, contact us for a consultation. Our experienced legal team is committed to ensuring your rights are protected and justice is served.
