FORT WORTH (PRWEB) August 26, 2014
The U.S. Commodity Futures Trading Commission (CFTC) announced this week a fine of more than $2.9 million against a New York-based precious metals dealer after that dealer allegedly engaged in the brokering and financing of off-exchange gold derivatives investments. The official Certified Gold Exchange wrote in a letter to clients that the ruling is further proof that privately-held, physical gold and silver investments carry less risk because they are hard assets.
“Many of our clients have bought gold for the sole reason of adding some insurance to the rest of their portfolio,” said Certified Gold Exchange spokesperson Janet Jones. “Buying financed gold for safety is akin to buying an umbrella for the rain and then leaving it at home every day. When it starts to pour, you’re going to get soaked.”
The CFTC has investigated dozens of gold dealers in the 13 years since gold started to climb from $252 per ounce, and many offenders have had to pay fines as well as suffer lifetime bans from commodities markets. The defendants in the case mentioned in the CFTC’s August 21st press release, Case No. 9:12-cv-81311-DMM, are alleged to have sold precious metals on a financed basis. Not only are the transactions alleged to have taken place outside of the realm of the CFTC’s oversight but the company is also accused of keeping clients’ funds instead of purchasing metals for the clients. The defendants were left unnamed in this article.
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 https://www.certifiedgoldexchange.com or call 1-800-300-0715 today.