Dear Mr Tan
I received a call from company X telemarketeer inviting me to attend
their Gold seminar and that they are regulated by MAS. I am required
to attend a 1 hour talk afterwhich I will be given a $400 voucher
which needs minumum purchase of $1000 for redemption. (Crazy)
Attended the seminar, very impressive as Company has Top 100 SME
AWARDS, pictures of political and influential people with the boss
which indirectly shows endorsement and write-up by media.
It seems the company is trading in gold and the GST on this trading will
be waived in October. They said that Singapore planning to be GOLD HUB
and that is why so many endorsement.
Processes: You buy 1kg gold for $91,000. You have to put in a deposit of
$2000 on the order and pay in full ti complete the contract. On full payment, you are
given a gold bar. From the 1st month, 2nd month and 3rd
month you will be given 1.7% ie $1,500 every month. After the 3rd
month you can extend and being paid again for the next 3 months. This
can be renewed quarterly.
If you return the Gold bar to them they will pay you back your
$91,000. The price of the Gold Bar is @ 20% higher than market price
and that is why they are able to pay the 1.7%.
It is very strange, investment amount is huge ie $91,000 or more,
attracting retirees and those with money.""
Annoymous
I received a call from company X telemarketeer inviting me to attend
their Gold seminar and that they are regulated by MAS. I am required
to attend a 1 hour talk afterwhich I will be given a $400 voucher
which needs minumum purchase of $1000 for redemption. (Crazy)
Attended the seminar, very impressive as Company has Top 100 SME
AWARDS, pictures of political and influential people with the boss
which indirectly shows endorsement and write-up by media.
It seems the company is trading in gold and the GST on this trading will
be waived in October. They said that Singapore planning to be GOLD HUB
and that is why so many endorsement.
Processes: You buy 1kg gold for $91,000. You have to put in a deposit of
$2000 on the order and pay in full ti complete the contract. On full payment, you are
given a gold bar. From the 1st month, 2nd month and 3rd
month you will be given 1.7% ie $1,500 every month. After the 3rd
month you can extend and being paid again for the next 3 months. This
can be renewed quarterly.
If you return the Gold bar to them they will pay you back your
$91,000. The price of the Gold Bar is @ 20% higher than market price
and that is why they are able to pay the 1.7%.
It is very strange, investment amount is huge ie $91,000 or more,
attracting retirees and those with money.""
Annoymous
MY VIEW
This is similar to other schemes. In effect, you are giving away $18,000 (i.e. the
difference between your investment of $91,000 and the actual value of the gold)
to receive $1,500 a month. While this look like an attractive investment, you do not
have any security for the ïnvested sum"pf $19,000 and the company could fold up at
any time. They are able to pay you the monthly return of $1,500 so long as they get
more people investing than withdrawals, and they are cash flow positive.
This is likely to be a ponzi scheme, where the investments made by the subsequent
investors are used to pay the earlier investors. Like any ponzi scheme, it has a high
risk of being fold up.
A clear cut "ponzi scheme " with MAS 's approval?
ReplyDeleteUniquely Singapore regulator again?
Well, as they said. There is always a sucker borned every minute.
More so in Singapre?
So what is needed for the "Authority " to act?
A Police Report?
A complaint to CAD or CPIB or might as well complain to the Ministry of Health?
What say you, fellow Singaporeans?
Only when the Operator run out of new members, will the scheme implode.
Just wish that when that happens, many of the Elites - including many PAP members / families will have a taste of it. Very bad of me, no?
I wonder whether greed helps to cloud the judgement of a person? Pay an extra $18,000 to get back interest of $1,500 per month for the next 3 months. Return them the gold bar, get back initial investment of $91,000. Talk is cheap. Company fold, then buy-buy $91,000. Also, is the gold bar in your hand real?
ReplyDeleteI once attended a seminar by robert kiyosaki. He said that if the brochure is colour and very impressive, you must be doublely careful. It also means something may be fishy. My point is, if it is too good to be true, then walk away. Minibond/DBS High Notes has showed you that MAS, Govt will not help in the event of fraudulent investment because you went in with your eyes open. This is not Hong Kong where the regulator fight for the rights of the people. LandBanking, Gold investment is a red zone filled with dangers.
If a stranger approaches you and ask you to give him $18,000 and he will pay you $1,500 a month, will you trust him? After collecting your money, he may run away. If this stranger tells you that he is approved by MAS, will you take his word for it? What if he lied to you?
ReplyDeleteYou have to be extra careful when the stranger has an impressive office with well dressed and highly motivated marketing personnel earning high commission. The commission and advertising expenses have to come from somewhere - yes, thank you, from you!
there is something i wish to highlight also.
ReplyDeleteconsider the markup price of the gold bar is 20%, in the case of any flop, the risk is way more then 20%, as there is no where you can sell your gold bar at par value on the open market.
say you send the gold bar to a pawn or jewellery shop, the take in price is something 20-30% lower then market value, so the potential lost of investment is actually more then 50%
Kin lian the writer said got big shots photo with them. Who are the big shots?
ReplyDeleteIt boils down to greed and the inability to calculate return on the money invested.
ReplyDeleteIf people can afford $90,000 to buy this, they could also buy 10,000 OCBC shares at $9.40 per share.
This costs almost the same: $94,000
but OCBC pays out dividends.
Using the payout during this year (2012 not the financial year)
OCBC pays 0.31cts per share.
That equals to $3,100 for the whole year. its approx 3.3% return.
Yes, its not as great as $1,800 EVERY month. But there is no such return in a proper, transparent market. With the exception of rental from property. But that means the capital sum required is over a $1,000,000!
Its pure greed, impatience.
I think they stand a better chance and perhaps more enjoyment at the casino... there, they know exactly what happened to the money!
If indeed the risk-adjusted returns are justifiable, they can market it to the sovereign funds who can buy out their entire operations instead of having to market it to individual retail investors one by one.
ReplyDeleteI only invest in blue-chip stocks, Government or related bonds and unit trust these days and I decide what and when to invest and my RM only help me to execute. I learnt a bitter lesson well in 8-better-than-1 HN5 bond.
ReplyDeleteMy fellow citizens, please grow up lah, like gold so much, go buy a 1 kg ingot from Bank, why pay a 20% higher than market price Gold Bar from strangers.
ReplyDeleteDon't anyhow believe those investment company or financial training school even they awarded with SME etc etc. I also not clear what this SME kind of award has to do with an investment strategy??
ReplyDeleteMy friend received few SMS from one of the FX schools in town, this school was participating the SME nomination at that time, they sent few SMSs to my friend to request my friend to vote for this school. In returns, they school will offer a discount price to my friend to signup a new course in the future or receiving a secrete trade call from the coach. Of course, my friend didn't response to their request because the forex trading strategy from the school is simplify not working in long runs
These operators move from one ponzi scheme to another. Tricks are the same only items they are selling different
ReplyDelete