(Stefan Gleason, Money Metals News Service) 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 has 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. For safety, avoid doing business with dealers who advertise on cable TV using celebrity spokesmen.
Stick with bullion-focused dealers who have built up a reputation for stellar customer service and exhibit a genuine commitment to sound money principles.
Stefan Gleason is President and CEO of Money Metals Exchange, the company recently named “Best Overall Online Precious Metals Dealer” by Investopedia. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC and in hundreds of publications such as the Wall Street Journal, TheStreet, and Seeking Alpha.
