Don’t blindly jump on the gold wagon!
Gold is not necessarily a safe investment and it is definitely not foolproof. Prices fluctuate even more than today’s stock market. It is a commodity and like any other commodity, its price can change dramatically. As well, gold prices also move in reverse of stocks and bonds, so when stocks are down, gold can become a tempting investment.
There are all sorts of ways to invest in gold, including buying the actual gold or making gold-related market investments in mutual funds, exchange-traded funds and futures, as well as shares of gold mining companies. As an investor, you need to examine each of these opportunities, do your homework and determine what you need to know before deciding to invest.
Watch for Gold Scams
Be aware of gold investment scams. In some schemes, scammers will offer to sell actual gold bullion and then keep it for you in a “secure” vault with the promise to sell it as it gains in value. Usually, the gold bullion doesn’t even exist. The soaring price of gold might look like a great way to recover your stock market losses, but there are plenty of dangers to watch out for as a gold investor.
Report a Concern to the BC Securities Commission
Be wary of so-called “safe” investments with high returns. If you come across an investment that seems too good to be true, report it to the BCSC. We welcome questions, comments, and tips from investors.
If you have any concerns about a person or company offering an investment opportunity, please contact BCSC Inquiries at 604-899-6854 or 1-800-373-6393 or through e-mail at [email protected]. You can also file a complaint or submit a tip anonymous using BCSC’s online complaint form.