"Sellers promise that if consumers invest in gold or other precious metals, they'll see quick returns but may gloss over the exorbitant fees the sellers will collect from unsuspecting investors.
"Their sales pitch is: this is a safe investment, you'll make a lot of money quickly, there's very little risk, and it's a good way to double or triple your money in a short time," said Vladeck. "[But] they don't make money by investing in gold. They make money by charging very high commissions, very high interest rates. And so they're panning for gold in your wallet, not trying to get the profits that they claim that you can get purchasing gold or other precious metals."
In another scheme, Vladeck said sellers may pitch investments in gold coins of historical significance as opposed to bullion, sometimes purposefully overinflating the investment value to make the sale. Vladeck said that the historical significance is not as important as the gold's basic "melt value".
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