Gold can turn to dust quickly
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.