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:
Beware of these companies. Do not be the next victim!