You probably wouldn't be reading this article if you didn't already know that gold and silver mining is big business here in Nevada. Investing in a legitimate mine could provide you with substantial profits. Investing in an illegitimate mine could provide you with substantial losses.
How to tell the difference presents a challenge in some instances. The state of Nevada offers some advice regarding this issue, and the highlights are below. Even when armed with information, you could still suffer losses, in which case, you may want to seek out some legal guidance to explore your options.
Fraud is a very real possibility
Investment fraud is as old as time. For generations, scam artists have attempted to sell their victims something that doesn't exist to extort money from them. The following tips could help keep you from becoming the victim of a gold or silver mine scam:
- Don't let anyone pressure you into investing right away. If the supposed owner or other party tells you that you have to invest now or miss the opportunity, there's a good chance it's a scam.
- Don't let colorful, information-packed sales materials fool you. With all the new computer software available, it's quite easy to fake a brochure or other sales materials designed to entice you to invest.
- Do your research. Make calls to verify the company and the information given to you.
- Con "artists" have this name for a reason. They know their subject, understand how to read people and figure out how to tell you what you want to hear in order to hand over your money.
- Don't believe it if someone tells you the turnaround is quick and you take on no risk. Every business venture has risks and takes time.
- Some people will tell you they have insider information, technology or equipment that makes the investment a "sure thing." Don't believe it.
- Ask questions. If you get vague answers or no answers at all, walk away.
- Check out the company with the state.
- Check out the claims about the mine itself, if it even exists.
- If the person trying to get you to invest says the mine contains deposits from the platinum group metals, walk away. No one has mined these types of metals here in Nevada since the early 1900s.
These tips are not meant to turn you away from investing in a mining operation. They are simply to help you avoid becoming the victim of a scam. If you need more information about mining operations and investing in them, you might take some time to discuss the matter with an attorney experienced in this area. The answers to your questions could help you decide whether mining is the right investment for you.