Timely and very useful warning from Jane Renwick, general manager of Vinothèque – the fine wine storage division of London City Bond, highlighting some potential dangers of wine investment:
Dear customer
Over the past few weeks it has come to our attention that numerous companies are cold calling our private customers using underhand tactics to buy or sell wines. May we strongly suggest that you take some time to read information that is supplied by Jim Budd, to ensure that these are legitimate companies at http://investdrinks-blog.blogspot.co.uk/.
You may also wish to peruse the below points:
Investment Fraud
This information has been produced to provide hints to avoid falling victim to investment fraud. Please take a little time to read through.
Over the past few weeks it has come to our attention that numerous companies are cold calling our private customers using underhand tactics to buy or sell wines. May we strongly suggest that you take some time to read information that is supplied by Jim Budd, to ensure that these are legitimate companies at http://investdrinks-blog.blogspot.co.uk/.
You may also wish to peruse the below points:
Investment Fraud
This information has been produced to provide hints to avoid falling victim to investment fraud. Please take a little time to read through.
-
Out of the blue –
Remember
that authorised investment firms and brokers do not use cold-calling as
a sales technique, so if you receive an unsolicited telephone call from
a person
or organisation you do not know, offering you an investment
opportunity, take extra care.
-
No thanks –
You can avoid many unsolicited telephone calls by registering
your phone number with the Telephone Preference Service (TPS). The TPS
is the official central opt out register for people who do not want to
receive unsolicited sales and marketing calls. This is free to do by
calling 0845 070 0707 or online at
www.tpsonline.org.uk
-
Now or never –
The
salesman (they often call themselves ‘’Brokers’’ or ‘’Portfolio
Managers’’) may put you under pressure to make a quick decision to
invest – for instance
‘’this is the last available and if you don’t buy today it will be gone
tomorrow’’. Don’t be forced into making rash decisions. Take your time
to think it through, speak with your family, an independent financial
advisor or a similar independent professional.
It is probably better to lose an opportunity than to lose your money.
-
All that glistens –
The
commodities offered in investment scams are often unusual – plots of
land, fine wine, carbon credits, coloured diamonds, rare earth metals,
or gold-mining
to name but a few. Unlike quoted stocks and shares, it can be difficult
to find out the underlying value of such commodities. Should you be
temped by such an offer, make sure you really know the true value of
what you are considering buying – don’t take the
salesman’s word for it.
-
Risk and return –
The
general rule with investments is that the higher the return offered, the
higher the risk of losing your money. High return investments with
minimal associated
risk do not exist. Don’t be impressed if the salesman tells you how
much money you would have made if you had bought shares in Microsoft or
Google when they first came to the market – you won’t be buying these
shares after all.
-
No way out –
Ask
about the exit strategy – how can you realise your investment and
receive your return? Will a national housing developer really want to
buy your small plot
of land in the middle of a field in Kent? Will a multinational
microchip manufacturer really want to buy your 1kg of Gadolinium? As
with any capital investment, you can only make a profit if you sell on
for more than you bought in – ask yourself where the
market is.
-
A racing cert –
If the
commodity is such a certainty to show a profit in a relatively short
timescale, ask yourself why a company would want to sell it to you.
Surely they
would hold on to it and keep all the profit themselves? I would.
- Too good to be true – If it looks too good to be true it probably is. Professional investors don’t get it right all the time and the risks to the armchair investor are greater still. Hedge funds may be able to afford losses on some of their more exotic investments, but can you?
Should you require assistance please contact a member of our Customer Services team on 0843 659
3617 or vtcustomerservices@lcb.co.uk who will be more than happy to help you in any way they can.
Kind regards
Jane Renwick
General Manager
Kind regards
Jane Renwick
