INTERNATIONAL SECURITIES AND EQUITIES COMMISSION WARNS ABOUT THE PROLIFERATION OF FAKE GOLD STOCKS.
International Securities and Equities Commission has noticed recently an increase in the number of illegitimate stock offerings in the gold market. Gold futures have gone from strength to strength lately with all time highs reached and breached and this has given rise to many an opportunity for scam brokers to persuade potential clients that gold stocks hold the key to massive profits.
We are warning investors to be extra prudent when considering investment in any of these stocks if they are brought to your attention by unsolicited calls or e-mail messages. Many of these opportunities are not what they seem and are subject to gross miss selling from the promoting broker. Others are simply scams designed to part the investor with his or her hard earned money.
Signs to Look out for.
Claims of massive gold reserves being held by the company being touted for investment – reserves are notoriously difficult to evaluate without prohibitively expensive exploration and it is easy for an investment firm to make claims without the ability to back them up.
Beware of unrealistic price targets and unlikely sounding projections – Promises of companies being “buyout prospects” and therefore potentially being worth 20 – 30 times their closing price are a common theme in this scam and are nothing more than unsubstantiated claims to help sell stock.
Tactics involving claims of the insolvency of the world’s reserve currencies are also dramatic and unfounded and simply a ploy to scare investors into investing in gold.
If you have been called regarding one of these investment opportunities, please [report the company] that called you to International Securities and Equities Commission.
Other Warnings From International Securities and Equities Commission
International Securities and Equities Commission Issues Alert on Retirement Portfolios.
International Securities and Equities Commission Warns About the Proliferation of Fake Gold Stocks.