We’ve decided to take a look at a recent gold and silver investment scam and subsequent lawsuit that led to the complete shutdown of metals.com. Take a look at that site. It’s a good tombstone for a business that pulled precious metals scams on elderly and vulnerable people.
7K Metals reviews these types of businesses as examples of companies to avoid when investing in gold and silver.
Why The Company Was Forced Out Of Business
The scheme this company was pulling involved over 1,600 victims and around $185 million of their money.
The vast majority of this company’s victims were elderly people who gave this company and their affiliates $140 million from their retirement accounts under the notion that this would safeguard their retirement funds.
This belief was fostered by company representatives who stoked the fires of fear and paranoia in their customers with conspiracy theories about the federal government, currency devaluations, and other exaggerated tales which instilled a sense of impending financial ruin.
The precious metals they were selling were marked up by 100 to 200 percent, meaning a major profit loss for their investors.
When their clients ever questioned them about the value of their portfolios, they would spin tales about differences between their holdings and the market value of the metals being the result of some atypical scarcity of the metals themselves. That, or they’d just outright lie about the resale value of their gold, silver, and other precious metals.
A Dallas-based receiver, Kelly Crawford, was court-appointed to liquidate assets to try and recover anything they could for the victims of this scam, but with little success—the company’s investors had locked in losses from the start.
This is why 7K Metals reviews these types of businesses and incidents—to keep this kind of thing from happening to you.
How They Scammed Vulnerable People
The company, which misled people into believing they were affiliated with the Republican Party and Fox News, chose this pitch to get users hooked: “liberals are seeking to siphon money from successful Americans”.
Once they had their users—all carefully selected—on the phone, they would give them pitches meant to tap into and manipulate their beliefs (drawing parallels between precious metals investing with certain verses in the Bible, for instance).
Related News—Sellers Using Coronavirus To Take Advantage Of People
7K Metals reviews businesses and sellers who use crises to get one over on people, and while the elderly are prime targets, it can happen to anyone.
The coronavirus and its economic impact is one such crisis, and you should be aware of how some companies and sellers are using it to their advantage.
Telemarketers and precious-metals sellers have been using the virus as a sales pitch in the same way they leveraged the 2008 financial crisis.
People are looking for a safe haven and precious metals investing is a good option—but you need to be discriminating and recognize a legit company vs. a scam artist who will cripple you financially.