FTC's Advice on Buying Precious Metal Safely

Digging for Details Before Investing in Gold Bullion or Coins

October 28th, 2011 by Colleen

If you want to diversify your investment portfolio, you may think gold is the answer. It can help hedge against inflation and economic uncertainty. But before you buy any investment,  it’s best to take some time, ask some questions, and get answers.

Earlier this year, the FTC put a stop to a bogus telemarketing operation that conned senior citizens into buying precious metals without disclosing significant costs and risks associated – a scheme that cashed in over $37 million from consumers! And recently, David Vladeck, our Director of the Bureau of Consumer Protection, spoke to ABC News about investing in gold and how to avoid some of the scams prevalent in this market.

Additionally, here are some tips to help you investigate a prospective investment in gold:

•    Ask for the coin’s melt value. That’s the basic intrinsic bullion value of a coin if it were melted and sold.
•    Talk with a reputable dealer or financial advisor you trust who has specialized knowledge. You may want to talk to other investors, too.
•    Shop around. Sellers may charge different premiums over gold’s prevailing market price.
•    Get an independent appraisal of the specific asset you’re considering. The seller’s appraisal might be inflated.
•    Consider additional costs. You may need to buy insurance or a safe deposit box, or you may need to rent offsite storage to safeguard your bullion.
•    Walk away from sales pitches that minimize risk and sales representatives who claim that risk disclosures are mere formalities. Reputable sales reps are up-front about the risk of particular investments. Always get a receipt for your transaction.
•    Refuse to “act now.” Any sales pitch that urges you to buy immediately is a signal to say ‘no thanks,’ and keep your money in your pocket.
•    Check out the company by entering its name in a search engine. Read what other people have to say about their experiences with the company. Try to communicate offline if possible to clarify any details. Take it a step further and contact your state Attorney General (www.naag.org) and local consumer protection agency (www.consumeraction.gov). Checking with these organizations in the communities where promoters are located is a good idea, but not fool-proof: it may be too soon for someone to realize they’ve been defrauded or to have lodged a complaint with the authorities.

Keep in mind promoters often use celebrities and high-profile personalities to tout their products. So when a bold-faced name says, “Invest in or buy gold with company ABC,” think about what they’re getting out of the deal. The fact is, many endorsers are paid by the company behind the product.

Want to know more? Take advantage of the FTC’s risk-free offer and check out our series of free publications about investing in gold – Investing in Gold? What’s the Rush?, Investing In Bullion and Bullion Coins, and Investing in Collectible Coins.

http://www.ncpw.gov/blog/investing/digging-for-details-before-investing-in-gold-bullion-or-coins-2?lang=en

How to Avoid Gold Ripoffs: Former Fraudster Gives Tips - ABC News

How to Avoid Gold Ripoffs: Former Fraudster Gives Tips - ABC News:

"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".

read more at: http://abcnews.go.com/Blotter/avoid-gold-ripoffs-fraudster-tips/story?id=14762381

'via Blog this'

New Sidewinder Sluice Box Video

Sidewinder Sluice Box Prototype#2 (01) - YouTube:

'via Blog this'

I stumbled across this crazy new sluice design. It doesn't look like it is quite ready for sale yet (too slow and holds too much material) but a very interesting design. Definitely attempts to mimic the action of a river with various bends.

They have several videos up on youtube http://youtu.be/d9xbpU0WAqs with various models and a highbanker version as well. Look forward to seeing a finished prototype.

Gold Manipulation - A short History

OLD SCHOOL MANIPULATION

In 1792 the U.S. Congress adopted a bimetallic standard (gold and silver) for the new nation's currency - with gold valued at $19.30 per troy ounce. This remained essentially unchanged until 1834, when the price of gold was raised to the $20.67 level which held for the next 100 years. 

It was not until 1934 that President Franklin Delano Roosevelt devalued the dollar by raising the price of gold to $35 per ounce.

Relative to today's world economic conditions, it is imperative to remember that F.D.R.'s stated purpose for dramatically increasing the value of gold was to boost commodity prices (especially farm products) and create more employment for the millions who were suffering the devastating effects of the Great Depression.

In December 1971 representatives of the ten most industrialized nations met in Washington D.C. It was their express purpose to take whatever measures in order to improve international economic conditions. The now famous Smithsonian Agreement accorded an immediate hike in the value of gold from $35 to $38 per ounce. President Richard Nixon hailed it as "the most significant monetary agreement in the history of the world." Unfortunately, it resulted in a measure too little and too late. 

International economic conditions continued to deteriorate, forcing the U.S. Government in 1973 to devalue the dollar a second time by raising the official price of gold to $42.22 per ounce. Finally, all international currencies were allowed to "float" freely against gold. By June of that year the London Gold Fixing had risen to an unprecedented $120 per ounce. Exploding demand during the following months set the stage for the creation of gold futures trading on the COMEX in January 1975.

A worldwide feeding frenzy for gold cannonballed its price to an all-time high of $850 per ounce on January 21, 1980.  Gold reached another all time high of 1900+ per ounce in 2011.

One would think manipulation by governments of gold prices ended in the 70's.  NOT SO MUCH

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MODERN MANIPULATION

New York Post Article on Gold Manipulation
The New York Post reports that trader blows whistle on Gold and Silver price manipulation.

Metal$ are in the pits
By MICHAEL GRAY
Last Updated: 4:33 AM, April 11, 2010

There is no silver lining to the activities of JPMorgan Chase and HSBC in the precious-metals market here and in London, says a 40-year veteran of the metal pits.
The banks, which do the Federal Reserve's bidding in the metals markets, have long been the government's lead actors in keeping down the prices of gold and silver, according to a former Goldman Sachs trader working at the London Bullion Market Association.

Maguire was scheduled to testify last week before the Commodities Futures Trade Commission, which is looking into the activities of large banks in the metals market, but was knocked off the list at the last moment. So, he went public.

Maguire -- in an exclusive interview with The Post -- explained JPMorgan's role in the metals pits in both London and here, and how they can generate a profit either way the market moves.
"JPMorgan acts as an agent for the Federal Reserve; they act to halt the rise of gold and silver against the US dollar. JPMorgan is insulated from potential losses [on their short positions] by the Fed and/or the US taxpayer," Maguire said.

In the gold pits, Maguire sees HSBC betting against the precious metal's price without having any skin in the game in the form of a naked short.
"HSBC conducts an ongoing manipulative concentrated naked short position in gold. Silver is much easier to manipulate due to its much smaller [market] size," Maguire added.

"No one at JPMorgan is familiar with Andrew Maguire," said Brian Marchiony, a company spokesman. HSBC declined to comment.

Also during the CFTC hearing, Jeff Christian, founder of the commodities firm CPM Group, said that the LBMA, the physical delivery market for gold and silver in the UK, has been using leverage, which is another way to depress the price of gold and silver.
Christian said that the LBMA -- the same market Maguire trades in -- has leverage of about 100-1 on the gold bars settled on the exchange. In layman's terms, that means if 100 clients requested their bullion bars be delivered, the exchange could only give one client the precious metal.
The remaining requests would have to be settled for cash equivalent. "That is tantamount to a default on the trade," says Bill Murphy, chairman of the Gold Antitrust Action committee.

Maguire goes further and calls it a fraud: "If you sell something you do not own, then that is fraud."
...

VIDEO Using a magnet while sluicing

video notes from creator :  This is a magnet bar I made for my sluice box. I don't sell them but the materials are easily available.

The 1x4 board was just a scrap piece I had laying around.

sluice box:   le trap sluice

I used a towel rack for the pipe. It came from the dollar store. Once you have the bar - measure the inside opening before buying magnets.

The magnets came from eBay. Be sure to get 4 magnets that are north south polarization on the sides and not on the ends. 

The screws and bolts came from the dollar store. The carpet runner is a softer rubber that also came from the dollar store.

I use the le trap sluice, however it should work as well on most aluminium or plastic sluice boxes.

How Gold Fever Starts

How Gold Fever Starts !!!


do you remember the thrill of finding your first flake?


- use the comments box and tell us about your first finds

LOL

Who says miners aren't 

environmentally friendly?!