“If You Can’t Hold It, You Don’t Own It” Revisited
Back on April 8th, 2011, I wrote a short article on the same topic of leveraged gold and silver (You Don’t Own It). Buying gold and silver on borrowed money continues to flourish, despite attempts by a myriad of government initiatives and organizations including Dodd-Frank legislation, the Commodity Futures Trading Commission (CFTC), the Federal Trade Commission (FTC), the National Futures Association (NFA) … and the list goes on.
The South Florida Sun Sentinel recently ran another article detailing yet another firm (they all seem to be in south Florida) where gold investors lost most or all of their money. They were promised big returns with little money down on gold they never saw but were promised that it was being safely stored on their behalf. In this case, the culprit was Sterling Precious Metals. Like Global, Worth and others before, the story virtually always end the same. Greed results in loss.
Click here to read the Sun Sentinel article on Sterling Precious Metals….
All Things Considered – John’s Commentary
If you want to own precious metals, then buy them. Period. If you want to speculate on price rises, then buy an ETF, leveraged ETF, options or futures.
Don’t borrow money to buy physical gold or silver! Take delivery, or store it in an insured depository titled in your name.
Don’t fall victim to telemarketers promising little risk with disproportionate returns based on the monies invested. I have yet to hear a happy ending – and I hear a lot of endings.
Action to take: Pay cash, take delivery, have a secure storage location(s), and be discreet.
Quote of the day: “A man with an evil eye hastens after riches, and does not consider that poverty will come upon him.” Proverbs 28:22 NKJV
