Not so-rare Resources – an Investment to Avoid !
For many would-be-investors, hearing about the “new big thing” is an attractive proposition, particularly when the investment is relatively unknown and the probability of getting rich-quick becomes overtly alluring. However, the alternative investment we’re referring to has made a regular appearance in the news recently, much we’re sure, to the dismay of those who have already been fooled into such scams, and to the con-artists themselves.
The latest so-called investment comes in the form of rare earth metals – which on the face of it, does appear almost bona fide. Why – even the periodic table can confirm their existence. The main issue is that the particular metals being offered by unscrupulous fraudsters can be virtually worthless and certainly not worth the amounts requested from investors.
Rare earth metals are defined in technical terms by Wikipedia. But in simple terms, the rare earth metals that are offered as “investments” are those chemical elements that are used in computers, mobile phones, batteries, satellites and wind turbines.
The UK Financial Conduct Authority (FCA) warns on its website: “We are yet to see any convincing evidence that there is a viable market for retail investors to make money from investments in rare earth metals.”
The FSA also adds: “We believe the firms promoting investments in rare earth metals have previously been involved in selling other high risk and unregulated products such as carbon credits, fine wines, land without planning permission and overseas land and crops…”
The fraudsters are reportedly using high-pressure sales tactics and asserting excellent returns – but whilst these metals are used in many electronic devices and therefore yield demand from known suppliers, such resources are far from scarce. In addition, this is an area that remains unregulated and is almost impossible to gauge in terms of price and quality.
You have been warned!