Orange County Gold Dealer’s Closure Reason to Worry, Says Certified Gold Exchange
Fort Worth, TX (PRWEB) March 14, 2014 -- In response to the recent closure of well-known Orange County gold dealer The Tulving Company, long-standing precious metals dealer Certified Gold Exchange has issued a statement warning investors to exercise caution when dealing with banks or gold brokers who may have excessive exposure to derivative investments such as leveraged gold.
Certified Gold Exchange spokesperson Janet Jones said from her Fort Worth office today that while the exact circumstances surrounding The Tulving Company remain unclear, hundreds of gold dealers have gone out of business in recent years due to underwater leveraged gold investments.
“Lots of dealers were long on gold at the end of 2011 when the gold spot price started to fall, and the same thing happened again last year,” said Jones. “On the flip side you had some dealers shorting gold at the beginning of this year, and that lost that way, too.”
Jones believes in privately held, physical gold investments, “because owning gold on paper is pointless if the whole point of buying gold is for protection and to offset losses” in paper assets. “Even if you think you are buying physical gold you need to make sure your gold dealer doesn’t have a finger in the derivatives honey pot, because in the past some dealers have used clients’ funds and/or metals to pay off leveraged gold debts. Essentially it’s a Ponzi scheme and it could take you months or even years to recover your money.”
Certified Gold Exchange, Inc. is one of North America’s premier precious metals trading platforms, providing unparalleled service to licensed dealers, institutions, and household investors since 1992. Certified Gold Exchange maintains an A+, Zero Complaint Better Business Bureau rating. For more information or a free “Gold Investor’s Guide,” visit http://www.certifiedgoldexchange.com or call 1-800-300-0715 today.
Ken Hansen, Certified Gold Exchange, Inc., http://certifiedgoldexchange.com, +1 800-300-0715, [email protected]
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