Saturday, November 03, 2012

A late entrant to the Gold bar scheme

Mr. Chan (not his real name) advised his wife to stay way from the Genneva Gold scheme. She did. After a year, the wife got angry with Mr. Chan because her friends invested in Genneva Gold and received their monthly payout and also the buyback payments. They were making a good return.

The wife decided to ignore Mr. Chan. Her family joined her to put in all of their savings into the scheme, and to make up for the lost time. Genneva Gold was raided by by authority six months later, and all their savings got stuck. Mrs. Chan and her family do not know if they will get back their investments and gold bars.


Lye Khuen Way said...

Mrs "Chan and family" can only pray hard.

They can also question the "Authority". Who might that be, will be a million dollsr question.

It might take 4 years to be answered.

Mr Tan had been bugging the MAS on this to no avail. Yet.

Unknown said...

It took HN5 group about 4 years to gather and file a class action suit to completion. At the end HN5 group was defeated.

Now I only invest in bonds (real bonds, not phony bond like HN5) and stocks and try to avoid phony RMs and financial advisors.

I guess banks still never learnt. Now they have this funny interest rate structure, looks and sounds like structured products to me. It looks harmless at this moment but banks might hide something from the depositors just like HN5.

yujuan said...

There are two distinct factors that influence an investor to buy into any investment, be it share or gold or land.
Greed and Hope. Both arise from the investor being a victim of his own mental state, which pushes his logical mind into sleep mode.
Watching his friends make big money, he feels envy and wants a piece of the pie, thus succumbing to the typical herd instinct to follow with eyes closed.
After wetting his feet, he next turns his attention on Hope, subconsciously praying his investment will give him the big returns he's craving for.
But Hope is not a strategy in investment. If he depends on Hope, he's gonna to be a failure at any time, as Hope is a gambling state of the mind, not an investment state of the mind.
As in the case of the Gold Scheme, he's very aware he's paying a 20% premium on his gold purchase, and "Hope" that the gold price will continue to rise above the 20% premium, so that he could continue to receive his monthly 2% payout, and then cash out smartly sometime later. Okay, he manages to cash out in the first round, stoking his ego to great euphoric heights. But then Greed tempts him again, and he reinvests into the scheme, and then another round of Hope takes over. But how many times could he depend on Hope to jaga his investment. He is now a hostage to his own mental state, and becomes his own greatest enemy.
When things finally turn awry, he angrily starts to cry daddy and mummy, pointing fingers at everyone for his dilemma, except himself, knowing fully well of LKY's statement - "you go in with your eyes opened."
Motto of the day, know yourself well first and use logic to make your own analysis, cutting out "noises" from friends, brokers, and so called professional analysts who have self interest.
Investment is all about self discipline and very, very hard homework done. Money dun fall from the sky for you to pick up.

yujuan said...

Those who wan to be able to learn about control of their state of mind in investments should attend talks by award winning stock strategist coach, Mr. K.C. Ee in a free 3 hour seminar talk, either on Nov 7th or Nov 10th. Check with Lim and Tan Brokerage for info.
Bet with you, you would regret attending seminar talks by SIAS, from which you find you learn nothing, just wasting your time and transport expenses.
KC Ee uses simple layman's terms on how to navigate the tricky art of stock investments, with interactive audience participating in the talks.
GIC and Temasek Holdings should engage him as Consultant, then we may avoid losing so much of our taxpayers money on UBS, this so called long term investment would make GIC "Tan Gu Gu" to even break even, as UBS chart is still trending downwards.

yujuan said...

Contd from above.
KC Ee would show you not all early entrants to the investment game makes money.
When the market trend changes course, SWFs and GLCs Companies in Singapore, tend to catch the falling knife in haste when the knife starts to fall, without studying the charts
of the counters,and go blindly in.
Just remember how DBS jumped into that Thai Bank at the start of the Asian Financial Crisis collapse of the late 90s, GIC similarly jumped into UBS 4 years ago when Lehman filed for bankruptcy, trying to be a white knight to the rescue, but the knife kept on falling because UBS chart had reversed trend with high volumes as the signal.
Thought they have all the best brains as strategists to advise them, why always jumping in too early, refusing to allow the knife to touch ground first.
Experts call it investor behaviour wanting the market to behave the way investor wants, not what the market wants. Like a businessman trying to sell a product he likes, not what the market likes.
And Temasek always jumps into the market when it is at the tail end of the last stage of its bull run, it's called the 4th stage, on the verge of reversing trend downwards, showing why Temasek always lose money abroad in Commodities investment.
We should thank LKY when he said of the Minibond investors, they went in with their eyes opened, actually he's teaching us how his GIC made the same mistake.
Attend KC's talks, you won't regret it.

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