Precious Metal Investment 
26 Comments Beware of Gold Investment SCAM!
Lately, because precious metal investment has been very popular among Malaysians, some companies are coming out with some investment schemes that provide guaranteed return.
Wait a minute.
If you understand the fundamentals of gold and silver investment, you will know that investing in physical precious metal is just so-called “buy low sell high”. There will be no cash flow in between. However, there are companies that do so.
It doesn’t make sense when I keep an ounce of gold at my home, and it springs out cash flow every month! It simply violates the rule of investing in gold and silver. We invest in precious metal and get capital gain or loss, and no dividend yield or cash flow in between.
If a company is offering gold and silver investment with cash flow earnings plus “Guaranteed Return”, beware of it! It might me the greatest scam that people are being trapped!
The worst thing is, those companies are saying that they’re scheduled institutions with Bank Negara Malaysia to solicit investments from the public. Recently, Bank Negara has received enquiries from members of the public in relation to these companies.
Check out this news to find out more: Misuse of Acknowledgment Letters Issued by Bank Negara Malaysia to Scheduled Institutions
A lot of companies are misusing of the acknowledgement letter by our Bank Negara. All they want to do is fishing investors to this trap!!!
Gold and silver investment is easy as buying groceries in the supermarket. Imagine that a company sell you some gold or silver and they’re able to provide you cash flow income. It simply means that there are some problems in between. Is the company charging a high premium from you? Or, the company just simply wants to gather capital and do some risky trading at the other end so that they can provide you the cash flow?
No matter what’s in between, but all the risks at the end will be associated with investors who do not understand the whole scheme well. I would say, such a scheme which looks too good to be true are actually a lot riskier than investing physical gold and silver without those schemes.
Last but not least, here is a list of companies which are not authorised nor approved under the relevant laws and regulations administered by Bank Negara Malaysia:
http://www.bnm.gov.my/documents/2012/Financial_Consumer_Alert_listEN.pdf
Beware of these companies. Do not be the next victim!
Which part is Scam when you receive the physical gold. Its like buying gold from any goldsmith. So its simple not complicated.
Anything when comes to investment has risk, you want to be free from risk, the don’t invest, a good investor do mitigate and have risk analysis done. Owning gold is one of them.
Which parts are possible scams? The part where you initially pay 20-25% above spot gold price. The part where you may not get 99.99% pure gold with certificate. The part where you have to wait days for gold delivery after payment. The part where you may not be paid after surrendering your gold at contract end.
Dear Merlion
1. Is it common to pay a percentage above spot gold price for gold?
2. Pls advise where I may purchase gold at spot gold price?
3. If I feel the percentage above spot gold price is too high for me, am I allowed to decide whether to purchase or not to purchase?
Many buyers of Genneva gold renewing/terminating their contracts are experiencing undue delays running into several weeks in getting their gold/money. They are very nervous. Rightly so. They may never see their gold or money again. Take note of warnings by Bank Negara and Commercial Crimes police about gold investment scams and do not fall victim to greed.
TQ, I nearly fell into this scheme, luckily I read your comments. Save me lots of hard earned money. Thanks again!
Dear Merlion
1. Is it common to pay a percentage above spot gold price for gold?
2. Pls advise where I may purchase gold at spot gold price?
3. If I feel the percentage above spot gold price is too high for me, am I allowed to decide whether to purchase or not to purchase?
4. Do you have name & contact numbers of any such persons so we may verify?
For reliable service and great prices, go to http://www.cherishedgold.com . I buy my bullion at this site and have not been disappointed. Thank you for the post.
Check out this news to find out more: Misuse of Acknowledgment Letters Issued by Bank Negara Malaysia to Scheduled Institutions
Link has error
Thanks for that. Edited
Dear Jeen Hao
1. When talking about fundamentals of gold and silver investment, you mentioned “investing in physical precious metal is just so-called “buy low sell high””. Do you include physical gold which is purchased at above-market price, with opportunity for cash returns, into this category?
2. Must ALL investment in physical precious metal be made on the basis of “buy low sell high”?
3. If announcements are placed in local news media & acknowledge forms are signed regarding the discretionery nature of the returns, are such investment schemes said to “provide guaranteed return”?
4. You mentioned “It doesn’t make sense when I keep an ounce of gold at my home, and it springs out cash flow every month!”. Isn’t this the premise of how most pawn shops work? Banks who offer gold safekeeping enjoy a spring of mthly admin and misc fee every month? Is that true?
5. If a company is offering gold and silver investment with cash flow earnings plus “Unguaranteed Return”, is it OK?
Thank you
This ANON ME fellow is infamous on the blogsite “Martin lee Genneva gold” (pls google this). He is infamous for spewing forth the most rubbishy logic you can find on the subject of investment. He is strongly suspected to be a Genneva plant. Everyone must be wary of this Anon Me.
This p c wong fellow is infamous on the blogsite “Martin lee Genneva gold” (pls google this). He is infamous for spewing forth the most rubbishy logic you can find on the subject of investment. He is strongly suspected to be a Genneva plant. Everyone must be wary of this p c wong.
Singapore has a Genneva branch selling gold.
There is a furious debate going on in the following blog ::
http://forums.hardwarezone.com.sg/money-mind-210/problems-genneva-payout-3861300-11.html
If you read the entries, you will realize that Genneva Sg is on the verge of collapsing.
Dear p c wong
You mentioned “If you read the entries, you will realize that Genneva Sg is on the verge of collapsing”. Pls advise if you have a collapse date to go with that?
Genneva is a big money scam, pyramid, PONZI, and will collapse soon. Genneva Sg is now having serious cash flow problems, Read about it at the blog “hardwarezone Sg gold Genneva problem payout” (google for it). Read The Star article 6-9-12 edition where Bank Negara made press statement expressly warning about gold investment with business model like Genneva, which the Bank Negara said was “illegal and fraudulent”. When Gnneva Sg collapses, Genneva M’SIA will follow soon after.
Bank Negara seems to be giving hints and advice to investors to get out of Genneva before the Bank Negara axe falls on it.
Read at Martin lee Genneva gold blog to see what the bloggers think of THE TROLL.
Dear p c wong
Why do you keep coming to jeenhao.com to advertise for other websites & blogs? Do you have some financial interests to drive viewers to other sites?
The collapse of Genneva S’PORE is now all over the news. Channel 8 TV Sg featured a broadcast about “THE GENNEVA GOLD SCAM”. An investor sued GEN Sg and nobody turned up to defend the suit. Read all about all these things at (1) Martin Lee Genneva Gold blog (2) Thehardwarezone Genneva gold, ditto Genneva complain group, (3) the. low YAT forum Genneva gold.
STAY FAR FAR AWAY FROM THE HOUSE OF GENNEVA!!
It is obvious the next chapter will be about the collapse of Genneva M’SIA.
Dear p c wong
How obvious will it be? On May 23rd, 2012 on Martin Lee blog, you predicted May collapse and fails with 90% probability and certainty and June collapse and fail with 100% probability and certainty for Genneva M’SIA. You were 100% wrong previously. Any new predictions?
Yes, as you were typing this reply on 1 October 4.11 pm, BNM and other authorities were at Genneva’s Kuchai Lama office conducting a raid. What do you predict will be the consequences on Genneva arising from this raid?
Dear merlion
The consequences are bad PR & lack of confidence. What do you predict, given that there is no conclusion to the raid as yet?
The raid spells the collapse of the Genneva ponzi scheme.
Dear merlion
Even before the conclusion is out? Your conjecture?
Not conjecture but an informed prediction. Not everyone is as idiotic as you strive to be. Why do you prevaricate all the time?
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To The Troll Anon Me,
What don’t you shut up and get lost?
Your House of GENNEVA has already collapsed!