FINRA Issues Precious Metals Investor Alert

FINRA issued an Investor Alert titled "Physical Precious Metals: Tips to Avoid Tarnishing Your Portfolio." The alert is intended to warn investors of the risks involved with investing in physical precious metals such as silver, gold, palladium and platinum.

The alert provided tips to help investors that included the following:

• say "no" to pushy salespeople;
• use the NFA Background Affiliation Status Information Center ("BASIC") to check whether a firm or individual is registered with the CFTC or an NFA member, and whether the firm or individual was the subject of any disciplinary action;
• don't purchase physical quantities of precious metals based on a promise that an investment is "safe" or has a minimal risk of loss;
• look out for leverage risk, since precious metals investments often involve the risky and expensive use of leverage, or borrowed money; and
• get a full accounting of fees.

See: FINRA Investor Alert: Physical Precious Metals: Tips to Avoid Tarnishing Your Portfolio.