12:09 pm - Monday, September 16 2019
Home / Archives / Before You Invest / All that glitters… Beware of gold investing scams

This content is from our archive. It may be outdated, inaccurate or missing media.

 

All that glitters… Beware of gold investing scams

The soaring price of gold has sparked a modern-day gold rush among investors eager to recover stock market losses. But it’s still a Wild West out there, and dangers abound for prospective gold investors.

The idea of gold as a “safe investment” is a myth. An investment in gold is not foolproof. Know your investment objectives and your risk tolerance, and don’t be swayed by trends. Gold may not provide long-term investment returns. Gold is a commodity, and, like other commodities, its price can fluctuate dramatically.

Historically speaking, the value of gold-related investments fluctuates even more than the stock market. Gold often moves in reverse of stocks and bonds, so when stocks are down, gold may seem like a very tempting investment.

Beware of gold investment scams. Where there is an investing trend, there is a con artist trying to take advantage of it. For example, in one typical scheme, a seller offers to sell actual gold bullion and then retain the investor’s gold in a “secure” vault with a promise to sell the gold for the investor as it gains in value. In many instances, the gold does not exist. In another typical scenario, a company encourages investors to cash out of their poor-performing investments to purchase gold, which may be nothing more than “fool’s gold.”

Remember, if you are advised to cash out investments and roll funds into a different type of investment, make sure the person advising this is a registered investment adviser.

About Haligonia.ca

See news happening near you? Tell us. Click here to email our team.

 

The views and opinions expressed in this content are those of the author and do not necessarily reflect those of haligonia.ca.

You might also like...

Kick start your financial health in 2013

The most common New Year’s resolutions are of course health related, but let’s not forget our financial health too. To help get you started in 2013 I put into practice the top tips to reduce household spending. I am excited to share my results...

Crowd Funding…what is it?

It’s a hot topic these days, but do we really know what crowdfunding is? Let’s start with a definition: The concept originated as an online money-raising strategy that began as a way for the public to donate small amounts of money, often...

Leave a Reply

Your email address will not be published. Required fields are marked *