Urgent Alert: Protect Yourself from Investment Scams

The U.S. Securities and Exchange Commission recently issued a press release announcing charges against an El Segundo, California-based metals dealer, its CEO and two of its former Senior Account Executives in connection with “a fraudulent scheme that involved convincing hundreds of investors to sell securities in their retirement accounts to buy gold and silver coins at prices that included markups far greater than the defendants had promised.”

The SEC alleges the company, rated “A+” by the Better Business Bureau, sold .999 pure silver coins (common bullion coins that are valued primarily for the coins’ precious metal content) as “premium coins,” and at prices 120 to 130 percent above the cost to acquire the coins. This practice is considered unconscionable by trusted metals dealers in the industry, such as First Gold Group, who follow strict compliance standards.

Let’s be clear here, the concept of a “premium” (self-proclaimed by the dealer) .999 pure silver coin, or .9999 pure gold coin, commanding a greater value/price than say, a .999 pure silver or .9999 pure gold Canadian Maple Leaf coin offered by an array of dealers, is a false narrative. Unless you are purchasing a numismatic coin (collectible) the price of the coin is primarily driven by one factor, the precious metal content contained in the coin (1/20-ounce, 1/10-ounce, ¼-ounce, ½-ounce, 1-ounce, etc.).

Please also take note, a coin that is newly minted with a unique design is not a collectible coin. In the SEC case mentioned above, the dealer had an “exclusive” arrangement with a well-known supplier to sell the .999 pure silver coin. This made it difficult for the consumer to compare pricing with other dealers. Limited distribution or the claim, “we are the only dealer that offers this coin” does not make the coin “collectible” demanding a premium price above the precious metal content contained in the coin. Collectability is largely derived from a coin’s age, physical condition considering its age, the fact that a coin is no longer produced, and many other factors driven by the numismatic consumer and collectible community…not the bullion metals dealer’s declaration. Simply saying it is a collectible coin does not make it a collectible coin.

For nearly 15 years, the founders of First Gold Group have served precious metals investors with integrity and dedication while adhering to the highest ethical standards in the industry.

Proven, trusted and secure.

Call 800-310-6126 and add gold and/or silver to your metals portfolio today.


Blair Harris