Gold can turn to dust quickly

Western Suburbs Weekly - - Business - Troy.macmillan@twd.com.au

Q: I re­cently re­ceived a phone call from some­one who was sell­ing shares in a new gold mine that has been dis­cov­ered near Broome but I can’t find any in­for­ma­tion about it in the news.

Have you heard any­thing about it? He has called three times now and I would like to see if it is le­git­i­mate. Peter from Cottes­loe

A: I’m not aware of any un­re­ported gold ‘dis­cov­er­ies’ up north.

That doesn’t mean it hasn’t hap­pened, but con­sid­er­ing your de­scrip­tion, it sounds quite pos­si­ble that you are be­ing scammed.

Scam­mers com­monly of­fer high re­turns on ‘new’ in­vest­ments.

The beauty of of­fer­ing some­thing new is that they can then pres­sure you into a hasty de­ci­sion in order to beat the rush.

The fact that you have had three phone calls al­ready – with the prom­ise of more – only re­in­forces this pos­si­bil­ity.

If this per­son is of­fer­ing fi­nan­cial ad­vice, their busi­ness should have an Aus­tralian Fi­nan­cial Ser­vices (AFS) li­cence.

Next time they call, ask for their li­cence num­ber and let them know that you would like to check their cre­den­tials be­fore con­tin­u­ing.

If they are le­git­i­mate, they shouldn’t have any prob­lem with you do­ing that.

Keep in mind that hav­ing a li­cence doesn’t guar­an­tee the qual­ity of their ad­vice or en­sure that the com­pany they are of­fer­ing shares in will be prof­itable – or even ex­ists – so you should def­i­nitely look for in­de­pen­dent ver­i­fi­ca­tion of their story be­fore even con­sid­er­ing part­ing with any of your cash.

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