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.