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.

Additional Photos

Joe Melomo of Austin, Texas, left, accompanied by Dama Brown, director of the Federal Trade Commission for the Southwest region, testifies on Capitol Hill in Washington on Wednesday before the Senate Special Committee on Aging hearing on “Exploring the Perils of the Precious Metals Market.” Melomo said he lost more than $200,000 after investing in gold and silver.
Joe Melomo of Austin, Texas, left, accompanied by Dama Brown, director of the Federal Trade Commission for the Southwest region, testifies on Capitol Hill in Washington on Wednesday before the Senate Special Committee on Aging hearing on “Exploring the Perils of the Precious Metals Market.” Melomo said he lost more than $200,000 after investing in gold and silver. The Associated Press

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.

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