The Financial Industry Regulatory Authority on Wednesday issued an investor alert warning against scams that promote gold stocks.
Called ‘Gold’ Stocks—Some Investments Mine Your Pocketbook, the FINRA alert cautions investors to beware of investment scams that promote gold stocks. It also provides information on how to invest in legitimate gold investments.
As the price of gold bullion skyrockets to record levels, a rash of tweets, blogs, websites and YouTube videos has focused on the allure of investing in gold.
While there are legitimate gold investments discussed online, “FINRA is concerned that some investors may fall prey to gold-related investment scams,” the largest non-governmental regulator for U.S. securities firms said in its alert.
In an interview with AdvisorOne on Tuesday, S&P gold equity analyst Leo Larkin said the run-up in gold prices may be overplayed in a heated market. “We like gold stocks. We’re bullish on gold. However, at the current levels, we think gold is probably a little overextended in price,” Larkin said.