Commission warns of bogus precious metal, oil and gas ventures

The Saskatchewan Securities Commission is warning the public to be wary of promoters who would capitalize on developments in the Persian Gulf by selling investments in precious metals. Although the recent crisis in the Middle East has yet to have a significant impact on gold and silver prices, turbulence in oil producing countries such as Iraq and Kuwait has, in the past, had a tendency to send precious metals prices soaring.

In the same vein, the commission warned investors to watch out for “certain unethical individuals” trying to sell bogus oil and gas partnerships.

“Promises of short-term profits to investors in oil and gas wells are almost certainly false,” said Marcel de la Gorgendiere, chairman of the Saskatchewan Securities Commission. “In many cases these wells are dry or out of production, belong to someone else or do not even exist.”

It can take as long as two years to bring an oil well to full production, the commission pointed out, and most major exploration and drilling firms are awaiting further developments in the Gulf before stepping up exploration efforts.