TONY HETHERINGTON: Gold is flying – however I used to be provided much less for my cash than I paid

Tony Hetherington is Financial Mail on Sunday’s ace investigator, fighting readers corners, revealing the truth that lies behind closed doors and winning victories for those who have been left out-of-pocket. Find out how to contact him below. 

Ms J.K. writes: Being a novice investor in gold, I started off with Solomon Global by buying one gold coin from them in 2021 for £1,359.

Last August, seeing how well it had done, I told the firm I wanted to get on to the housing ladder in a year or two. They told me about their buy-back guarantee.

Unless the gold price fell they forecast a gain of up to 24 per cent, so I invested £11,364 in four more coins. Last November, the firm said my £11,364 had grown to £12,115, but when I asked to sell, they offered only £11,595 for all five, which had together cost me £12,723.

Tony Hetherington replies: It would be hard in recent times to invest in gold and fail to make a profit. But Solomon Global did its best to hand you exactly this result. Even your short-term investment several months ago should show a decent profit, with gold up from £1,950 an ounce to about £2,330 when you decided to sell. 

You wanted to buy your first home before stamp duty changes in April land you with a tax bill. But you were shocked to be facing a loss.

Priced out: Gold should be a safe investment option – when done properly

When you asked how this could happen despite rising gold prices, you were told it was because Solomon Global would incur costs to market your coins again. This was not what you were told last November, when its salesman said: ‘For your portfolio, I would include coins that are both valuable and easy to sell, allowing you the flexibility to cash out earlier if needed for the property you would like to buy.’

After I contacted Solomon Global, the firm asked you to bring the five coins to its London office. When you arrived, you were asked to send me an email which Solomon Global had helpfully written for you.

In it, you admit that you were ‘confused’ about the terms on which you bought four ‘graded’ coins last year.

The email written by Solomon Global for you says: ‘I now recall a conversation with them where they explained that graded coins are typically only recommended for those looking to hold for at least four years. This has made me question whether I had fully understood everything from the outset.’

And the email ends by telling me: ‘I no longer need any assistance.’

You were embarrassed to have to send me the email, but don’t worry! It was so obviously not written by you that it was actually amusing.

Solomon Global refunded the money you invested last year, with no profit, despite the tale that your £11,364 had grown to £12,115.

And you were given £2,300 for your original 2021 gold coin, allowing you a profit of £941.

If the name Solomon Global rings bells, it is because I reported last year that the Advertising Standards Authority banned one of its adverts for failing to make clear that gold investment was unregulated.

I warned that one salesman, who had used several aliases, was a known rip-off merchant named Clive Mongelard who failed to obey a 2020 court order to repay £1.2million to investors he cheated; instead he declared himself bankrupt.

And the email that Solomon Global drafted for you was prepared by owner, Scott Wilson, who is really Scott Assemakis, whose record includes an 11-year ban on running a limited company, imposed in 2013 after he played a big role in a £7 million land investment scam. Against this background, I’m pleased that you emerged with a modest profit.

WE’RE WATCHING YOU 

A police probe into allegations of fraud by art investment firm Smith & Partner Ltd has been shut down, despite investors claiming they were cheated out of millions of pounds.

Since 2022, The Mail on Sunday has repeatedly warned against the company, which went into liquidation in July 2023. Liquidators know of more than 1,000 victims, and say claims exceed £15 million.

Smith & Partner sold limited edition art prints, advertising that one client had received a 64 per cent profit – later revealed to be an ‘inside deal’. 

Thorough probe: A police investigation into allegations of fraud by art investment firm Smith & Partner Ltd has been shut down

It claimed to be regulated by the Fine Art Trade Guild, but in fact it expelled Smith & Partner, which was run by Luke Sparkes, 33, who offloaded it for £10 shortly before it collapsed. He is said to have received £5.9 million.

In 2021 he paid £2.25 million for a six-bedroom home in Cheam, Surrey. The Mail on Sunday provided information to the police. At least 60 investors told how they were cheated.

This week police said they carried out a thorough probe, and added: ‘After assessing all the information available and following every viable line of enquiry, the threshold for charges was not met. 

‘All complainants were informed. There were no arrests. Officers will continue to investigate if new information comes to light.’

Liquidators are pursuing civil court claims against Sparkes.

If you believe you are the victim of financial wrongdoing, write to Tony Hetherington at Financial Mail, 9 Derry Street, London W8 5HY or email tony.hetherington@mailonsunday.co.uk. Because of the high volume of enquiries, personal replies cannot be given. Please send only copies of original documents, which we regret cannot be returned.