Investors throughout the U.S. and Canada were solicited by the firm through national publications, prime time television and over the telephone. In the recent Florida bankruptcy, thousands of investors chose to leave their gold with the firm, and many were also urged to send gold and silver bought from other sources to the company for storage or to invest more money with the firm in exchange for a monthly rebate check. If the company gets into trouble, e.g., if the price of gold goes up and the company can't cover its commitments, it may keep stalling delivery of purchases by such inducements as offers of astronomical interest payments in lieu of the gold. If the company goes under, customers stand to lose substantial portions, if not all, of their investments. If you do decide to invest in precious metals, however, it is always a good idea to consult with a reputable financial adviser and deal through a recognized merchant, broker of financial institution.
Spot prices mean today's prices fixed on major exchanges.
Dealers selling gold or silver below spot are selling below market. This is a danger sign. Experience has shown that these dealers often do not buy the ordered metals hoping that the market will go down. Although they tell customers that gold is going up, the only way dealers selling below spot can make money is if the price drops so that they can later buy the ordered metal at a price lower than they sold it top the public. This is an indication of a possible fraud.