How to spot an investment scam

An suspected investment scam involving the sale of derivatives linked to gold has been uncovered in Poland (Wall Street Journal). Based on preliminary evidence the following lessons can be learned: (1) Always check out the credentials of senior management, (2) Do you really understand the investment? In this case I doubt that many - if any - of the investors understood the difference between physical gold and derivatives, (3) Unusual and high marketing expenditures.

Big Brother is after your Gold

We have warned repeatedly that the Western 'Democracies' are on the slippery slope to a totalitarian Superstate that will make anything seen in History like child's play. Latest confirmation is the remark by Paul Volcker about the possibility that intervention in the Gold Market by governments may be justified 'at any critical point'. The next step will be 'interventions' by our trusted friends, the political establishment/congregation of Spenders of Other People's money, who will 'request' that you put your gold at their disposal to help 'needy causes' - such as spendthrifts in Greece or Portugal. Intelligent Investors know that the only way to store Gold safely is in physical form and away from any place where states can trace it or have the access blocked.

MF Global: How to get rich from bankruptcy

The trustee that oversees the liquidation of MF Global is charging $891 against the assets of the failed broker while customers have to wait for news about when and how much of their money will be returned to them. Confidence in paper assets will be damaged by this regulatory failure and demand for real assets such as precious metals and property can only be increased.

And you thought you owned that Silver?

A new court case in the USA highlights the risks of leaving your holdings of physical precious metals such as Silver or Gold with a bank. That the belief that one owns 'hard' assets is naive to say the least is proven by the fact that often all that you really own is a claim on a bank. Should that institution get into trouble you are only the owner of a claim on that bank and have to joins the queue of creditors. In all likelihood you would at best receive a fraction of the worth of your holdings in the eventual settlement of the bankruptcy.