Gold Investment Gone Wrong: Reader Recovers Funds After Solomon Global Mishap
Tony Hetherington, Financial Mail on Sunday’s chief investigator, champions readers’ causes, uncovers hidden truths, and secures resolutions for those financially disadvantaged. Contact details are provided below.
First-Time Investor’s Gold Venture Turns Sour
Ms. J.K., a first-time investor in gold, recounts her experience with Solomon Global. In 2021, she purchased a single gold coin for £1,359.
Impressed by its performance, she decided to invest further last August, aiming to accumulate funds for a future home purchase within two years. Solomon Global highlighted their buy-back guarantee.
Projecting potential gains of up to 24% if gold prices remained stable or increased, she invested an additional £11,364 in four more coins. By November, Solomon Global indicated her £11,364 investment had grown to £12,115. However, upon attempting to sell, the firm offered only £11,595 for all five coins, which had collectively cost her £12,723.
Hetherington’s Intervention Unravels Solomon Global’s Tactics
It is typically challenging to lose money investing in gold recently. However, Solomon Global seemingly contrived to produce precisely such an outcome. Even a short-term investment made several months prior should have yielded a reasonable return, considering gold prices rose from approximately £1,950 to £2,330 per ounce during the investment period.
Ms. J.K. intended to purchase her first home before impending changes to property transaction taxes. She was understandably dismayed to be facing a loss instead of a profit.
Investment Risk: Gold is generally considered a safe investment, but only when managed appropriately.
Upon questioning this discrepancy despite rising gold values, Solomon Global attributed it to marketing expenses they would incur to resell the coins. This explanation contradicted previous assurances from their salesman in November, who had stated: ‘For your portfolio, I would recommend coins that are both valuable and easily sold, providing you with the option to sell sooner if needed for your property purchase.’
Company’s Dubious Email Strategy and Subsequent Refund
Following intervention by Financial Mail on Sunday, Solomon Global requested Ms. J.K. to bring her coins to their London office. Upon arrival, she was presented with a pre-written email, purportedly from her, to send to Tony Hetherington.
In this email, she was made to admit to being ‘confused’ about the terms of purchasing ‘graded’ coins the previous year.
The Solomon Global-authored email stated: ‘I now recall a conversation where they clarified that graded coins are typically advised for investors intending to hold for at least four years. This has led me to question my initial understanding.’
The email concluded with the line: ‘I no longer require any assistance.’
Ms. J.K. felt awkward sending this clearly inauthentic email. However, its lack of credibility was evident.
Ultimately, Solomon Global refunded her initial investment from the previous year, without any profit, despite earlier claims of growth to £12,115.
Furthermore, she received £2,300 for her original 2021 gold coin, realizing a profit of £941.
Solomon Global’s Troubled Past and Unethical Practices
The name Solomon Global may sound familiar due to a prior report last year concerning the Advertising Standards Authority banning one of their advertisements for failing to disclose that gold investment is unregulated.
A salesman associated with the company, known under several aliases, was identified as Clive Mongelard, a known fraudulent operator who disregarded a 2020 court order to repay £1.2 million to defrauded investors, instead declaring bankruptcy.
The email drafted by Solomon Global for Ms. J.K. was prepared by the company owner, Scott Wilson, also known as Scott Assemakis. His record includes an 11-year ban from directing limited companies, imposed in 2013 for his significant role in a £7 million land investment fraud. Given this context, it is positive that Ms. J.K. achieved even a small gain from this encounter.
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CONTACT TONY HETHERINGTON
If you believe you are a victim of financial misconduct, please contact Tony Hetherington at Financial Mail, 9 Derry Street, London W8 5HY or via email at [email protected]. Due to the high volume of inquiries, individual responses are not possible. Please send copies of original documents only, as we regret that documents cannot be returned.