Consumers warned about precious metals investment scams

Special to The SUN
The Colorado Division of Securities at the Department of Regulatory Agencies (DORA) is issuing a warning to all Colorado consumers to give close scrutiny to any type of precious metal investment opportunities they may encounter before spending their money.
Some Coloradans are receiving cold calls and have experienced high-pressure sales tactics in which companies seek to leverage particular political ideologies.
“Some precious metals companies will call their targets repeatedly and try to establish a bond using political fear mongering,” noted Colorado Securities Interim Commissioner David Cheval. “After they accomplish this, they attempt to sway their targets to buy their product.”
Red flags to look out for include when salespersons from a precious metals investment company suggests that the consumer liquidate their traditional retirement accounts, move to a self-directed IRA (known as a SDIRA) and then buy the metals — all in the space of a few phone calls.
Consumers can protect themselves from falling for a precious metals scam by demanding a few key items from the salesperson they are communicating with, including asking for their license types and checking their license information, asking how they get paid and ensuring that any oral agreements made be provided in writing before investing.
“The bottom line is, before making these life-changing financial decisions, ask lots of questions, do your homework and contact the Colorado Division of Securities,” Cheval said.
To reach the Colorado Division of Securities, call (303) 894-2320.

This story was posted on January 7, 2020.