The Commodity Futures Trading 

Commission (CFTC) is the 

federal government agency that 

regulates the commodity futures, 

commodity options and swaps 

trading markets. The CFTC 

wants to inform you about tricky 

promises of easy profits from 

rising prices in precious metals 

such as gold, silver, palladium, 

and platinum. Following is information about these offers and 

simple ways to spot the ones 

that could be scams. 

contact us

if you have questions, are aware of suspicious 

activities, or believe you have been defrauded, 

please let the cFtc know immediately. call the 

cFtc or visit www.cftc.gov/tiporcomplaint.

Precious Metals 

Fraud

coMModity Futures trading coMMission

1155 21st Street, NW

Washington, DC 20581

866.366.2382 (Consumer Hotline)

202.418.5514 (TTY)

consumers@cftc.gov

www.cftc.gov/consumerprotection 

Commodity Futures trading Commissio

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 Offering to do a small favor for you in return 

Precious Metals sales Warning signs!

 Statements that precious metals transactions 

are not regulated by the CFTC or the National 

Futures Association.

 Agreement that does not identify the financial 

institution or bank that will be loaning you the 

money.

 Agreement that does not identify where the 

physical metal is located.

 Claims to deliver the physical metal to an 

overseas storage facility.

 Difficulty in verifying the company’s license.

 A salesperson that cannot provide a way to 

prove their licensure from a government agency.

 A salesperson offering highly complex purchasing techniques for unusual success.

 Missing documentation that seems necessary.

Frequent sales arrangeMent that May 

indicate ProbleMs

 Claiming you can make a lot of money with little risk 

by purchasing through a “financing agreement.” 

 Structured so you only pay a small percentage 

(between 15% and 25%) of the total purchase price.

 Full price paid by a loan, that the company 

arranges, to finance the rest of your purchase.

 Claims that the company will store the precious 

metals for you in a storage facility or “bank.”

Frequent ProbleMs

 Often do not use your money to purchase metals at 

any time.

 Do not actually arrange for loan financing with an 

independent financial institution, but charge you 

phony interest. 

 Do not store metal with an independent bank or 

storage facility, but charge you storage fees.

 Fraudulently fail to point out that because you are 

not paying the full price for the metals, you will 

have to send the company additional funds if prices 

change unfavorably.

 Often use your funds to pay themselves commissions, leaving little for you.

beFore investing in Precious Metals, 

ask, ask, and ask soMe More!

 Contact the CFTC at 866.366.2382 or the National 

Futures Association at www.nfa.futures.org/basicnet 

to check the company’s registration status, business 

background, and disciplinary history.

 Ask how the financial professional is qualified to 

provide you with this service.

 Ask how the product meets your financial needs.

 Ask how the financial professional is paid for his/

her service.

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