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Secretary of State

SOS > Media Center >  Press Releases > Indiana Secretary of State Todd Rokita urges caution for investors considering golden opportunities Indiana Secretary of State Todd Rokita urges caution for investors considering golden opportunities

     FOR IMMEDIATE RELEASE 
October 20, 2010

Indiana Investment Watch working around the state this week to help keep Hoosiers “Money Smart”
 
INDIANAPOLIS – With gold prices reaching record highs, investors are increasingly turning to gold-related investments. Indiana Secretary of State Todd Rokita and his Indiana Investment Watch program today reminded investors to be cautious about buying into the hype surrounding the precious metal.

“The soaring price of gold has sparked a modern-day gold rush among investors eager to recover stock market losses,” Secretary Rokita said. “But it’s still a Wild West out there, and dangers abound for prospective gold investors. An investment in gold is not foolproof. Gold is a commodity, and, like other commodities, its price can fluctuate dramatically. An investor needs to know and consider his or her investment objectives.”
Indiana Investment Watch recently posted new information at http://www.indianainvestmentwatch.com/ to help investors spot the risks of gold investments.

Based on previous market trends, the value of gold-related investments fluctuates even more than the stock market. Gold often moves in reverse of stocks and bonds, so when stocks are down, gold may seem like a very tempting investment.

There are many ways to invest in gold, including buying actual gold or making gold-related market investments in mutual funds, exchange-traded funds and futures, as well as shares of gold mining companies. The information posted at http://www.indianainvestmentwatch.com/ examines each of these options and explains what investors need to know about each before deciding to invest.

Secretary Rokita also advises investors to beware of gold investment scams. For example, in one typical scheme, a seller offers to sell actual gold bullion and then retain the investor’s gold in a “secure” vault with a promise to sell the gold for the investor as it gains in value. In many instances, the gold does not exist. In another typical scenario, a company encourages investors to cash out of their poor-performing investments to purchase gold, which may not be an ideal strategy. 

When approached about an investment opportunity, Indiana residents are urged to call the Indiana Securities Division at 1-800-223-8791 or use the searchable databases online at http://www.indianainvestmentwatch.com/ to make sure the person and the investment itself are licensed and registered.


NOTE:  Indiana Investment Watch is currently partnering with the Federal Reserve Bank of Chicago and more than 175 partner organizations on the 5th annual Money Smart Week. This week, more than 270 free financial workshops will take place all over the state. A full calendar of events can be found at http://www.moneysmartweek.org/.


Media Contact: Jim Gavin, (317) 233-8655 or media@sos.in.gov
                                   
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