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Commodities Firm Misleads Investors with Phantom Gold

The US Commodities Futures Trading Commission (CFTC), the nation’s top derivatives regulator, has brought a civil case against Las Vegas-based Hunter Wise Commodities and 11 other futures and commodities firms. The CFTC claims that the firms fraudulently marketed commodity contracts to investors, promising to deliver physical gold, but really offering nothing more than pieces of paper.

The case argues that since July 2011, Hunter Wise has taken in over $46 million in customer funds for transactions of gold that it did not have. The firm is also accused of providing phantom loans for the sham investments.

The CFTC has warned about practices such as this before. There have been many cases of companies that frequently sell shares of gold without ever actually stocking up on the yellow metal itself.

Hunter Wise’s lawyers interpret the law differently, of course. However, the CFTC knows that it is nothing more than lying to clients and is making the case to get justice for the scammed buyers.

So what can gold investors do to ensure that their purchases are safe and legitimate?

“Stick with purchases that ensure physical delivery,” says Arthur McGuire, Vice President of nationwide coin dealer Gold Coin. “Firms that deal in paper gold may sound like they can offer the deal of a lifetime, but as we’ve seen in the Hunter Wise case and countless others alike, it is always possible that what you are purchasing isn’t even worth the paper it’s printed on.”

Gold-Coin.com buys, sells and trades real gold coins, and can help you with a physical gold purchase today. Throughout our long-standing history, we have never had a single complaint, which is why we boast an A+ rating with the Better Business Bureau. If you are ready to make an unambiguous gold coin investment, call us at 1-800-776-7253 and speak with one of our friendly, expert representatives today.

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