1) contact us
The Commodity Futures Trading
if you have questions, are aware of suspicious
activities, or believe you have been defrauded,
please let the cFtc know immediately. call the
cFtc or visit www.cftc.gov/tiporcomplaint.
Precious Metals
Fraud
Commission (CFTC) is the
federal government agency that
regulates the commodity futures,
commodity options and swaps
trading markets. The CFTC
wants to inform you about tricky
promises of easy profits from
rising prices in precious metals
such as gold, silver, palladium,
and platinum. Following is information about these offers and
simple ways to spot the ones
that could be scams.
coMModity Futures trading coMMission
1155 21st Street, NW
Washington, DC 20581
866.366.2382 (Consumer Hotline)
202.418.5514 (TTY)
Commodity Futures trading Commission
consumers@cftc.gov
www.cftc.gov/consumerprotection
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CCONTACT
2) Frequent sales arrangeMent that May
indicate ProbleMs
Claiming you can make a lot of money with little risk
by purchasing through a “financing agreement.”
Structured so you only pay a small percentage
(between 15% and 25%) of the total purchase price.
Full price paid by a loan, that the company
arranges, to finance the rest of your purchase.
Precious Metals sales Warning signs!
Statements that precious metals transactions
are not regulated by the CFTC or the National
Futures Association.
Agreement that does not identify the financial
institution or bank that will be loaning you the
money.
Agreement that does not identify where the
physical metal is located.
Claims to deliver the physical metal to an
overseas storage facility.
Difficulty in verifying the company’s license.
A salesperson that cannot provide a way to
prove their licensure from a government agency.
A salesperson offering highly complex purchasing techniques for unusual success.
Missing documentation that seems necessary.
Claims that the company will store the precious
metals for you in a storage facility or “bank.”
Frequent ProbleMs
Often do not use your money to purchase metals at
any time.
Do not actually arrange for loan financing with an
independent financial institution, but charge you
phony interest.
Do not store metal with an independent bank or
storage facility, but charge you storage fees.
Fraudulently fail to point out that because you are
not paying the full price for the metals, you will
have to send the company additional funds if prices
change unfavorably.
Often use your funds to pay themselves commissions, leaving little for you.
beFore investing in Precious Metals,
ask, ask, and ask soMe More!
Contact the CFTC at 866.366.2382 or the National
Futures Association at www.nfa.futures.org/basicnet
to check the company’s registration status, business
background, and disciplinary history.
Ask how the financial professional is qualified to
provide you with this service.
S
Ask how the product meets your financial needs.
Ask how the financial professional is paid for his/
her service.
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