Leland National Gold ExchangeRipped off on Silver and Gold Leverage Investment

I
This review was posted by
a verified customer
Verified customer

I recently bought silver with leverage through Leland and was not told how the investment worked. In fact, even their paperwork didn't really spell it out. In fact, i've still yet to have it spelled out and i invested two months ago.

I bought 60, 000 in silver with a 20, 000 investment, the benefit being as silver went up i would enjoy three times the growth and that my risk would be minimal. I bought it as a long term investment that i could watch passively over the next three years and then cash out. I was told that silver would have to drop to $20 an ounce before i would get what's called a margin call - where they call you to get more money from you because the bottom fell out on your investment and you don't have enough collateral to cover what they loaned you - well silver went from 49 down to 34 and I got a margin call for 3 grand that I didn't have and now i lost my investment because my salesman lied to me.

Don't trust these people. Leverage is very risky. In fact, precious metals investing is very risky, combined with leverage it's more like gambling and it's being sold to you by people at Leland who aren't even licensed to sell investments (check www.finra.org) or commodities. These people should be shut down.

Responses

  • Di
    Dickie Ryan Jun 03, 2011
    This comment was posted by
    a verified customer
    Verified customer

    If you did lose money on the recent downturn in the silver market, you're certainly not alone. However, I do have the sneaking suspicion that this submission is not legitimate after reading the only other complaint that was posted by "Ian Embry" (also on June 2nd 2011 - Gold and Silver Numismatic Coins — Ripped off on Gold Purchase).

    So let me get this straight, you're a coin dealer who owns a local shop in California where you maintain customers, AND you're invested in metal at a separate firm? Why? You claim you have customers that have been ripped off by ELEVEN (that's right, 11) different firms you've sequentially listed in your other complaint. If you're a coin dealer, why have so many of your customers invested with so many other shops? And if at least 11 of your clients have been ripped off by these places, then what in the WORLD made you decide to invest your own money with one of them?

    None of this adds up at all. One can't help but infer that is a screamingly flagrant attempt to smear competitors' names...

    0 Votes
  • Me
    Metals Guy Jun 02, 2011

    Anyone who would invest 20k without having even the slightest idea of how the investment worked is an idiot and deserves to lose every cent. What ever happened to personal responsibility? It is YOUR responsibility to be clear on what you are doing BEFORE giving anyone your money. The nature of silver and gold investing is the understanding that they are volatile and can go down as well as up. Lastly, why on earth would you invest your last 20k like that if you did not even have 3k in the bank afterwards? Sorry, but it sounds like you are a fool and now are trying to blame someone else for your bad decisions.

    0 Votes

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