The scam itself is a riff on the time-honoured advance fee fraud, known in West Africa as '419' after the section of the Nigerian penal code that prohibits it.
Punters are shown a small quantity of real gold, with the promise of much more at a low price. They are subsequently asked to pay large sums upfront for taxes, insurance and licensing.
Any metal they receive, though, is worthless: often brass or copper shavings....
The improbability of finding a local bargain is underlined by Olufemi Boyle-Hebron, a gold and diamond dealer in Freetown who runs his own refinery.
His agents buy from artisanal miners in the field at prices up to $37,500 per kilo. Once export dues and other fees are paid he sells for $44,000 at a profit of just $3,000 per kilo.
"There's no cheap gold in Sierra Leone ... I work in volume," he explained....
As for buying gold at a discount, I've only seen one case: a 14 K 1976 Canadian Olympic coin listed at a below-spot fixed price several years ago when gold was still three digits. That listing was the only one below spot I've seen in all my years eBaying. It was listed back when gold was much less known than it is today. Everyone else listed above spot or auctioned it off so that an above-spot price was booked at the end.
Given world interconnectedness, I think it's best to assume that everyone who has gold knows what it's worth. There are no "rubes" out there. What this means is, a good deal consists of getting gold at spot. A price well below spot is a red-flag warning that something's not right with the gold.
Also, it's a good idea to use protected payment means if practicable. That way, you can get your money back if scammed.
No comments:
Post a Comment