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Consumer Alert:

FIGHT GOLD
COIN FRAUD!

Get a basic education before buying

With the increased public interest in owning precious metals for financial safety and profit potential also comes the increased risk of new consumer rip-off scams. If you intend to buy bullion or U.S rare coins as a long-term investment Swiss America believes your best protection is learning about coin investments first.

Watch: 5 Steps Before Buying Gold ~ Excerpt from "Rare Opportunity" DVD

7 warning signs from Commodity Futures Trading Commission

COMMISSION ADVISORY
Beware Of Promises Of Easy Profits From Buying Precious Metals And Other Commodities

The United States Commodity Futures Trading Commission (CFTC) is the federal agency that regulates the trading of commodity futures and options contracts in the United States and takes action against firms suspected of illegally or fraudulently selling commodity futures and options. Over the past several years, the CFTC has taken enforcement action against wrongdoers who lured customers to purchase purported interests in precious metals without taking delivery, through various misrepresentations including claims that they would earn large profits with little risk.

Certain companies advertise on radio, television or internet websites, or make telephone "cold calls," to promote the purchase of precious metals such as gold, silver and platinum. In the CFTC's experience, the advertisements, infomercials and telephone solicitations often promise quick riches - such as the ability to double or triple the customer's initial investment in just two or three months - all with low risk. Companies making such statements typically ask that customers pay only a small percentage of the total purchase price, and also claim that they (or another company) will purchase and store the metal.

These companies also pretend to arrange financing for the customer's metal purchase so the customer can obtain a larger profit by controlling a larger amount of metal with their relatively small downpayment. Companies often discourage customers from taking delivery of the metal. These companies often charge a commission for the purchase transaction, a loan origination fee, an interest charge on the remaining balance (which accrues over time), and fees relating to storage and shipping of the metal they pretend to purchase for the customer. Sometimes, not all of these fees are disclosed up front.

What's Wrong With Such Sales Pitches?
The CFTC's experience has been that companies making such pitches often:

* lie about or overstate their ability to predict prices or the direction of the metals markets;

* minimize the degree of investment risk involved in metals investments;

* fraudulently fail to disclose how much the price of metal must go up for the customer to break even (let alone profit), since hefty finance and storage fees and commissions are deducted from the customer's account before any profits accrue;

* falsely claim to be purchasing and storing the metal, when they do not actually do so. Indeed, companies often discourage customers from taking delivery of the metal;

* charge phony "storage" fees for metal, when no metal is actually purchased or stored;

* charge phony "interest" fees that diminish a customer's account equity to the point where the customer has to deposit additional funds with the company or have his account closed out at a total loss. The interest fees are phony because no metal has been purchased, as promised, and the financing arrangement therefore is fictitious;

* fail to point out that, because you are buying on "margin" or with leverage, you will have to send the company additional funds (or sell a portion of your "metal position") if the price of the precious metals moves unfavorably.

7 Warning Signs Of Commodity "Come-Ons"
If you are solicited by a company to purchase commodities, watch for the warning signs listed below:

1) Avoid any company that predicts or guarantees large profits with little or no financial risk.

2) Be wary of high-pressure tactics to convince you to send or transfer cash immediately to the firm, via overnight delivery companies, the internet, by mail, or otherwise.

3) Be skeptical about unsolicited phone calls about investments from offshore salespersons or companies with which you are unfamiliar.

4) Prior to purchasing, contact the CFTC (www.cftc.gov) or other authorities, including your state's securities commissioner (www.nasaa.org), Attorney General's consumer protection bureau(www.naag.org/index2.html), the Better Business Bureau (www.bbb.com) and the National Futures Association (www.nfa.futures.org).

5) Be sure you get all information about the company and verify that data, if possible. If you can, check the company's materials with someone whose financial advice you trust.

6) Learn all possible information about fees and commissions charged, and the basis for each of these charges.

7) If in doubt, don't invest. If you can't get solid information about the company, the salesperson, and the investment, you may not want to risk your money.

SOURCE: CFTC.gov


To celebrate 26 years of inspiring America to rediscover gold, Swiss America has released "A RARE OPPORTUNITY" their 2008 educational DVD featuring Pat Boone free to the public!
  • RARE OPPORTUNITY will help you understand why today gold is an excellent buying opportunity for safety first, then profit, as we enter the next stage in this 15-23 year bull market in precious metals.

  • RARE OPPORTUNITY covers all of the basics investors need before buying gold, including; four types of gold worth owning, five steps before buying gold, and six major forces driving gold higher.

  • RARE OPPORTUNITY features excerpts of CNN, CNBC and FOX NEWS interviews with Swiss America CEO Craig R. Smith between 2002 and 2007 discussing the bull market in gold and his 2001 book, "Rediscovering Gold in the 21st Century".

CLICK HERE to request a FREE review copy of "A RARE OPPORTUNITY" DVD, with companion CD, booklet and "GOLD: THE NEXT STAGE" magazine (a $30 value). Host Pat Boone's advice; "Don't wait to buy gold, buy gold and wait. Learn... then earn!"

Not sure? 3:00 "Rare Opportunity" Trailer

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