This
paper is an attempt to provide information to investors, students,
brokers, and professional people who
may
come into contact with a scam. By controlling one's emotions it is
possible to survive such contact and
come
away a more knowledgeable person. The elements that make up mining
stock scams appear to be
obvious
in hind-sight. The scammers who operate in this business are very
clever salesmen who know how
to
exploit weaknesses in human nature. The paper will describe the
elements that generally make up stock scams and how to be wary of
these "red flags". A detailed review of the Bre-X scandal
of 1996-97 will also be given to record the elements that made up the
"Scam of the Century". Mining has a mystique to it that
creates curiosity and intrigue. The image of the old-time prospector
and his mule crossing the wilderness in search of gold is today
replaced by the slick promoter in a three-piece suit running a Boiler
Room with Internet connections and immediate access to information
and the ability to tap into the emotions of investors and ordinary
citizens. The seeking today is often times not for gold but for
pigeons to part with their money. Read the entire Paper
