Beware the Gold Scams

In the past, most people have associated gold scams with the sale of non-existent gold mines, an undivided interest in unmined ore or the sale of gold-plated lead bars. These scams are still available to those who want to speculate. Now, though, the mining industry is plagued with a new type of con artist. Many of the new scams involve large, well established mining companies being victimized. Nearly all legitimate mining companies are in search of good mining prospects. This makes them susceptible to modern day con artists. Many professionals from the mining and petrochemical industries are out of work. Some of them have gotten involved with scams or activities that border on the criminal. Mining companies are losing millions of dollars each year to scams. Some of these scams involve venture-capital fraud. Some involve fraudulent mining proposals. And some involve unqualified individuals who are providing services by the precious metals industry. The author estimates that mining scams may be costing precious metals companies as much in dollar losses annually as employee theft. Employee theft is at an all time high, but so are gold scams. Since January of 1990, the au¬thor has been involved in gold theft investigations in which more than $1 million in gold product has been stolen by employees. In the past, most of the gold mine scam operators have concentrated on the general public, which is generally ignorant of basic mining procedures and practices. A scam artist would tell someone from your neighborhood that they have a wonderful underground mine. It produces 62.2 kg/t (2000 oz per st) of gold ore. Your neighbor might think that sounds like a very good investment. Those involved in the mining industry know better.