Investing in gold
Exercise caution when buying gold. That's the message from the Federal Trade Commission.
Gold prices have climbed sharply and there are plenty of tv commercials urging Americans to invest in gold. But the FTC warns that some gold promoters don't deliver what they promise.
Remember, the price of gold fluctuates over time. There's no guarantee that gold will increase or even maintain its value.
Whether you are buying gold stocks and funds, bullion and bullion coins, or collectible coins, the FTC says it's critical to do your homework first. Get an independent appraisal of the specific gold product you're considering. The seller's appraisal might be inflated.
And consider additional costs. You may need to buy insurance, a safe deposit box, or rent offsite storage to safeguard bullion.