Senate examines precious metal scams on seniors
WASHINGTON (AP) — Joe Melomo thought the phone call promising a "safe" investment in gold and silver offered him hope, a way to help cover the enormous bills from his restaurant. But Melomo says those pledges of huge profits with little risk never once mentioned whopping, hidden fees that ended up wiping out much of his retirement savings.
Melomo, 77, is far from alone, according to a yearlong Senate investigation into unscrupulous precious metal companies.
The report, released Wednesday by the Senate Special Committee on Aging, estimates that more than 10,000 Americans have fallen victim to precious metal schemes. Too often, those victims are seniors, says the report, which pegged losses at around $300 million since 2001.
The 2008 financial crisis helped con artists steer people away from the stock market, telling consumers that precious metals were immune from market volatility, which isn't necessarily the case. In 2013 alone, the report says, the price of gold fell nearly 30 percent.
Joe Melomo, of Austin, Texas, thought gold was the answer to his troubles.
http://bigstory.ap.org/article/senate-examines-precious-metal-scams-seniors
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