Dubai Multi Commodities Centre (DMCC) today issued a notification to DMCC members and investors in general to exercise caution in dealing with offers made to sell large quantities of gold at a discount to the market price.
DMCC officials stated that they had become aware of a recent upsurge in such offers, which, they say, are almost always an attempt by the seller to defraud investors. Another characteristic of such fraudulent transactions is that sellers frequently approach honest business partners who are unaware of how the gold market operates.
Colin Griffith, Executive Director for Gold and Precious metals, DMCC, said: “Recent publicity and volatility in gold prices has attracted increased investor focus on this metal. In such circumstances, we often see an upsurge in fraudulent activity. This has been the case in recent weeks.”
DMCC officials say that the best protection for investors is to deal only with reputable gold merchants, including those registered with DMCC, and to be wary of any offers that purport to include a discount from the market price. The DMCC also said that it would work closely with the concerned authorities to ensure that appropriate action is taken to protect members.