Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Further Gold Price Pressure as the USDX Is About to Rally - 23rd Oct 20
Nasdaq Retests 11,735 Support - 23rd Oct 20
America’s Political and Financial Institutions Are Broken - 23rd Oct 20
Sayonara U.S.A. - 23rd Oct 20
Economic Contractions Overshadow ASEAN-6 Recovery - 23rd Oct 20
Doji Clusters Show Clear Support Ranges for Stock Market S&P500 Index - 23rd Oct 20
Silver Market - 22nd Oct 20
Goldman Sachs Likes Silver; Trump Wants Even More Stimulus - 22nd Oct 20
Hacking Wall Street to Close the Wealth Gap - 22nd Oct 20
Natural Gas/UNG Stepping GAP Patterns Suggest Pending Upside Breakout - 22nd Oct 20 -
NVIDIA CANCELS RTX 3070 16b RTX 3080 20gb GPU's Due to GDDR6X Memory Supply Issues - 22nd Oct 20
Zafira B Leaking Water Under Car - 22nd Oct 20
The Copper/Gold Ratio Would Change the Macro - 21st Oct 20
Are We Entering Stagflation That Will Boost Gold Price - 21st Oct 20
Crude Oil Price Stalls In Resistance Zone - 21st Oct 20
High-Profile Billionaire Gives Urgent Message to Stock Investors - 21st Oct 20
What's it Like to be a Budgie - Unique in a Cage 4K VR 360 - 21st Oct 20
Auto Trading: A Beginner Guide to Automation in Forex - 21st Oct 20
Gold Price Trend Forecast into 2021, Is Intel Dying?, Can Trump Win 2020? - 20th Oct 20
Gold Asks Where Is The Inflation - 20th Oct 20
Last Chance for this FREE Online Trading Course Worth $129 value - 20th Oct 20
More Short-term Stock Market Weakness Ahead - 20th Oct 20
Dell S3220DGF 32 Inch Curved Gaming Monitor Unboxing and Stand Assembly and Range of Movement - 20th Oct 20
Best Retail POS Software In Australia - 20th Oct 20
From Recession to an Ever-Deeper One - 19th Oct 20
Wales Closes Border With England, Stranded Motorists on Severn Bridge? Covid-19 Police Road Blocks - 19th Oct 20
Commodity Bull Market Cycle Starts with Euro and Dollar Trend Changes - 19th Oct 20
Stock Market Melt-Up Triggered a Short Squeeze In The NASDAQ and a Utilities Breakout - 19th Oct 20
Silver is Like Gold on Steroids - 19th Oct 20
Countdown to Election Mediocrity: Why Gold and Silver Can Protect Your Wealth - 19th Oct 20
“Hypergrowth” Is Spilling Into the Stock Market Like Never Before - 19th Oct 20
Is Oculus Quest 2 Good Upgrade for Samsung Gear VR Users? - 19th Oct 20
Low US Dollar Risky for Gold - 17th Oct 20
US 2020 Election: Are American's ready for Trump 2nd Term Twilight Zone Presidency? - 17th Oct 20
Custom Ryzen 5950x, 5900x, 5800x , RTX 3080, 3070 64gb DDR4 Gaming PC System Build Specs - 17th Oct 20
Gold Jumps above $1,900 Again - 16th Oct 20
US Economic Recovery Is in Need of Some Rescue - 16th Oct 20
Why You Should Focus on Growth Stocks Today - 16th Oct 20
Why Now is BEST Time to Upgrade Your PC System for Years - Ryzen 5000 CPUs, Nvidia RTX 3000 GPU's - 16th Oct 20
Beware of Trump’s October (November?) Election Surprise - 15th Oct 20
Stock Market SPY Retesting Critical Resistance From Fibonacci Price Amplitude Arc - 15th Oct 20
Fed Chairman Begs Congress to Stimulate Beleaguered US Economy - 15th Oct 20
Is Gold Market Going Back Into the 1970s? - 15th Oct 20
Things you Should know before Trade Cryptos - 15th Oct 20
Gold and Silver Price Ready For Another Rally Attempt - 14th Oct 20
Do Low Interest Rates Mean Higher Stocks? Not so Fast… - 14th Oct 20
US Debt Is Going Up but Leaving GDP Behind - 14th Oct 20
Dell S3220DGF 31.5 Inch VA Gaming Monitor Amazon Prime Day Bargain Price! But WIll it Get Delivered? - 14th Oct 20
Karcher K7 Pressure Washer Amazon Prime Day Bargain 51% Discount! - 14th Oct 20
Top Strategies Day Traders Adopt - 14th Oct 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Confessions of a Gold Scammer, Lessons to Learn

Commodities / Gold and Silver 2011 Nov 02, 2011 - 05:20 AM GMT

By: GoldSilver

Commodities

Best Financial Markets Analysis ArticleLast week on Good Morning America, ABC ran an exclusive on the $ 29.5 million Global Bullion Exchange fraud.  The piece presented the mastermind behind the gigantic gold and silver scam, Jaime Campany.  From 2007 through 2009, Campany and his company's accomplices stole more than 1400 individual investor's savings.  The vast majority of these folks will never recoup their losses.


The Sun Sentinel ran several articles on this particular fraud, you can read further details about it by clicking any of the links below:

Investors lost $29.5 million when S. Florida company closed, documents say - May 12, 2010

Owner of South Florida gold firms admits to fraud - August 5, 2011

The Global Bullion Exchange scam continued on for years, unnoticed by authorities, without prosecution.  The fraud used standard tactics which gold scam and silver scam artists often utilize: playing upon investor greed and investor fear.    

Greed

By offering "leverage accounts" investors were sold via greed.  They were told that by utilizing additional financing to buy more metals, they could then see more upside and higher returns on their investments.  These folks were most probably not warned about their account's liquidation in a short term sell off.  

For more information on leverage account scams and how they work, click here.

Fear

Playing on investor fear, most customers never took physical delivery of their investments.  A vast majority of the supposed gold and silver which the Global Bullion Exchange sold investors was never purchased in the open market, this created a ponzi-like business structure which was destined to collapse and fail.

Red Flags 

Investors in the Global Bullion Exchange had difficulty both selling their "investments" and or taking physical delivery of their holdings.  

Most investors were first contacted by outbound boiler room sales calls utilizing high pressure sales tactics.  

The company offered "leverage accounts" which is always a red flag for high profit dealer sales vehicles.  Reader beware for there are countless dealers in business today who still play upon investor ignorance and eagerness.

Due Diligence is a Must

- By running searches online you can find potential complaint boards, company Better Business Bureau BBB record complaints, etc.  

- Try utilizing the search words scam, rip off, fraud, etc. along with the company you are investigating.  Where you find lots of smoke, chances are high that behind the scenes there is a fire:

Lessons to Learn

- Leverage accounts and collector coins are the 1 - 2 punch for most frauds in the gold and silver industry.  We always steer clear of these "investment" vehicles. 

- Mike Maloney always says, "If you can't hold it, you don't own it."  This is an excellent guideline when considering a third party for bullion storage and safekeeping.

- New investors should first take physical delivery of their bullion investments.  Once holdings become too large or unsafe for home, utilize trusted - fully insured - third party - segregated vault storage facilities where you always receive official third party verifications of your holdings.  

- When selecting third party vault facilities, physical delivery should always be available without limitations or barriers.  Liquidation of holdings should be an easy, secure, and expedient process.

- The fundamentals for gold and silver bullion investing speak for themselves.  Outbound boiler-room phone calls should never be entertained.  You should never allow yourself to be hard sold into any investment, ever.

Sadly, the Global Bullion Exchange fraud will undoubtably not be the last nor the largest gold or silver fraud to unfold in the years ahead.  On our current radar of potential gold and silver investing pitfalls are the following:  pool accounts, various ETFs or exchange traded vehicles, fractional-reserve based gold and silver future exchanges, leverage accounts, gold passbooks, silver passbooks, and more.

Here at GoldSilver.com we will continue to keep our customers apprised of potential gold and silver investment frauds and scams.  Please stay tuned.  

http://goldsilver.com

Mike Maloney is the owner and founder of GoldSilver.com, an online precious metals dealership that specializes in delivery of gold and silver to a customer's doorstep, arranges for special secured storage, or for placement in one's IRA account. Additionally, GoldSilver.com provides invaluable research and commentary for its clients, assisting them in their wealth building endeavors.

© 2011 Copyright  GoldSilver - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules