The Dubai Multi Commodities Centre (DMCC) Wednesday warned its members and investors in general to exercise caution in dealing with offers made to sell large amounts of gold at a discount to the market price.
Colin Griffith, Executive Director for Gold and Precious Metals for the 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 said it has become aware of a recent upsurge in such offers, which are almost always an attempt to defraud investors. The sellers frequently approach honest business partners who are unaware of how the gold market operates, according to DMCC officials.
The organization said the best protection is to deal only with reputable gold merchants, and be wary of any offers that claim to include a discount from the market place. The DMCC said the group would work closely with concerned authorities to ensure that appropriate action is taken to protect its members.
Investors with any concerns about proposed transactions can contact DMCC's financial compliance director at hassan.nasser@dmcc.ae
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