Ask questions first, if you’re considering investing in precious metals. Staff Attorney Lindsay Fedler with the state Department of Financial Institutions Division of Securities, said due diligence is critical before buying gold or silver.
“What are their qualifications, and how does the product they’re pitching meet your personal financial needs, as well as what are their premiums and fees for buying these precious metals?”
Fedler said precious metal firms should be able to give buyers a precise value. And she said prospective investors need to be wary of advertisements designed to instill fear about the economy, touting certain political or religious affinities, trying to create a false sense of urgency by claiming that there is a limited supply, or encouraging financing through loans that are typically arranged by the firm selling precious metals.
Before making any financial decisions, the DFI recommends investors do their homework, ask questions, and contact the DFI’s Division of Securities at [email protected] and (608) 266-2139 for more information. If you have concerns about a precious metals offer, contact either the DFI’s Division of Securities, the Wisconsin Department of Agriculture, Trade, and Consumer Protection (DATCP) toll-free at (800) 422-7128 or [email protected], or report suspicious activities and information to the CFTC toll-free at (866) 366-2382.
Additional information may be found in this DFI press release.