WASHINGTON — Some seniors worried about stock market swings look to gold and other precious metals as a safe investment. But, too often, they’re scammed by telemarketing con artists who wipe out retirement nest eggs after promising huge profits and low risk — but don’t mention whopping, hidden fees.
A report, released Wednesday by a Senate committee on aging, estimates more than 10,000 Americans have fallen victim to precious metal schemes since 2001, with losses pegged at around $300 million.
Joe Melomo of Austin, Texas, says he lost more than $200,000 after investing in gold and silver with a Florida-based precious metals company — almost everything he had saved for retirement.
The 77-year-old man was testifying at a hearing chaired by Sen. Bill Nelson of Florida and Sen. Susan Collins of Maine.