Are you currently thinking of Purchasing Gold, Silver or any other Precious Metal? Here are some things to consider.
The Commodities Futures Trading Commission (CFTC) and the Financial Industry Regulatory Authority (FINRA) are jointly releasing this Investor Bulletin to caution investors about potential frauds involving investments in physical precious metals, particularly those linked to self-directed individual retirement accounts (SDIRAs).
Gold or silver IRA scams often target older workers and retirees who typically have more savings in their retirement accounts. Many retirees seek secure options to preserve their wealth for the future or pass it on to their heirs.
However, investments in precious metals can be volatile, and scams that promise exaggerated safety, inflate metal prices, and overcharge fees can deplete retirees’ savings, leaving them financially vulnerable. Over the last decade, the CFTC has brought charges against numerous companies for allegedly selling overpriced precious metals, amounting to more than $500 million in fraudulent sales.
Before considering rolling over your retirement plan into a gold or silver IRA, here are ten questions you should ask:
- Should I respond to unsolicited offers from precious metals dealers via phone or email?
- How do I identify a reputable dealer?
- Is the precious metals salesperson a registered commodity trading advisor or investment professional?
- What exactly is a gold IRA, and how does it work?
- What is the spot price, and why is it important?
- What is the spread, and how does it impact my investment?
- What fees and commissions will I be charged, and are they disclosed upfront?
- What other costs should I consider, such as storage, insurance, and administrative fees?
- What is the difference between bullion, numismatic, and semi-numismatic coins?
- Are there alternative ways to invest in precious metals?
If you suspect fraudulent activity or have been a victim of a scam, you can report it to the CFTC or FINRA. It’s essential to conduct thorough research and consult with financial professionals before making any investment decisions.
This Investor Bulletin serves as a guide to help investors navigate the complexities of precious metals investments and avoid potential scams. Remember to exercise caution and diligence when considering any investment opportunity.
