In my last blog I gave you a little bit of an introduction to gold stocks securities fraud, and some of the misrepresentation that can be used to defraud investors in these types of markets. Today, I want to make a list of warning signs you can look for that may tell you if an investment is really a gold stock securities fraud.
With gold investments and securities fraud, there are some stereotypical tactics the con-artists are using time and again to swindle your hard earned cash. So here are the top 5 things to look for that could be the key to you personally uncovering securities fraud yourself in gold markets. When you pair these warning signs with the investment research I mentioned in blogs Anton Legal Group-Investigate Before You Invest, and Investigate Before You Invest (Part 2)-Anton Legal Group, you will be better prepared to make an informed decision about the fit of an investment to your needs.
- Pie in the Sky Price Targets and Exponential Growth Predictions – These predictions are based on gold reserve predictions that are impossible to verify or prove. FINRA mentions a company who claimed it’s mine in Nevada contained “approximately 2.14 million ounces of gold equivalent resources,” and an estimated market value of over $2 million. Based on these incalculable reserves, the company ran a promotion promising your investment “Could turn $10,000 into $384,600.” If it sounds like a get-rich-quick scam, it probably is!
- Fictitious Claims – Claims of being a “buyout target” for other mining companies ring the bell of securities fraud warnings! One company claimed in an Internet promotion that it was a prime “buyout target” at 15 to 35 times it’s actual current value, which was around a dollar. Equating the company’s stock prices to the price of gold is another giant warning sign and a fallacy. A company’s stock price rises and falls based on many other factors besides the price of gold, including individual company earnings. Anyone who tries to even remotely pretend otherwise is pulling your leg and your wallet. 
In my next and final blog on gold investment securities fraud, I’ll finish up the final 3 warning signs in the “Top 5 Warning Signs of Gold Investment Securities Fraud” list.
Please, if you are not getting anywhere with resolving securities issues on your own, call S. David Anton of Anton Legal Group!
S. David Anton, Esquire is a Certified Arbitrator for the Financial Industry Regulatory Authority (FINRA), formerly the NASD, which is the national organization responsible for overseeing the securities industry. He has served as a Judge/Panelist and rendered decisions in many securities arbitration cases, giving him a unique perspective on his client’s individual situation.
FOR SECURITIES ADVICE, PLEASE FEEL FREE TO CONTACT DAVID ANTON OF THE ANTON LEGAL GROUP AT 813-443-5249.