Thailand’s Gold Traders’ Association has issued a warning to the public to be aware of shady companies persuading people to invest in buying gold on the spot or futures markets overseas.
Jitti Tangsitpakdi, president of the association, said many scam gold trading firms have been established and deceived people to invest in the gold spot market or in the futures market.
Many deceived investors have filed complaints with the association and the Securities and Exchange Commission (SEC) and the two agencies along with police economic investigators have apprehended a number of people working for such firms in the past, Mr Jitti said.
Such people periodically close their fraudulent businesses and then open new firms elsewhere to escape arrest, he said.
Stock markets have traditionally been volatile. Though many make an earning out of share markets and the return on investment is often very attractive, there have been instances when a person lost all his money overnight in the share market. Same is the case with the currency market which has seen a lot of boom in the last few years. Profits are good, but the losses are even bigger. So, investing in gold is very prudent and though the returns may be slow, you will never lose your money if you invest in gold. Gold is never old, and it is very liquid. At any time, you can encash it.
During the last major bull market for gold the 1970’s, scam artists abounded. It only makes sense that they are back for more. The crooks of today have a new tool at their disposal to lure unsuspecting victims: the internet. Although the safeguards put in place are far more sophisticated, scam artists have always been able to keep up with the changes. The more regulated the means of security taken, the more ingenious the hackers, criminals, and scammers show themselves to be.
The best scams appear to be clever ideas and great business opportunities on the surface. Professional-looking individuals well-versed in the art of sales have a carefully constructed pitch waiting for you. The goal is to come off as legitimate as possible, seeking inspiration from those who are.
Gold scams come in many flavors, from buying fake gold mines to buying non-existent gold bars. Bullion scams have a pattern in that many involve offshore gold stashed in remote places, in Swiss vaults, or straight from mines in South Africa. The gold being sold may be described as 99.9% pure gold bars, coins, powder, refined, unrefined, or etcetera.