Taiko,
On Genneva's business structure, there is no doubt it is extremely attractive. Where to find returns of 24% with guaranteed returns of capital ?

As an investor, do you think that we are uninformed (read : so stupidly ignorant) of the potential returns ? If it is really that attractive, why most of us here don't pour our money into Genneva ? I will be the first to liquidate all my business, my real properties, my physical gold, my watch collection, my antique collection, my wife's diamond collection, plus most probably I will sell my wife and mistresses and my left kidney too to invest into the company. In 10 years, I would make 6 times (compounded) my initial investment + potential increase in gold price (could be US$6000/oz in 10 years time, which is another 6 fold) ! With initial investment of say, RM10m, an investor is guaranteed to make RM60m, and potentially another RM60m = RM120m, all in 10 years time !     

Why I am so "stupid" not to follow you ?

Because I believe in high risk, high return. The risk is just too high in Genneva. I would rather sweat myself out to work for the money I deserve to earn. This type of high risk money, frankly I got no balls to earn. Not even a single sen because I one day I will be a laughing stock when the company folds up

Remember, Bernard Madoff was caught only after >15 years he is in business and burn away US$65 billion ! And US authority is way more stringent than malaysia. Compare to Madoff, Genneva is just a small potato.

Anyway, I wish you luck 

thanks for sharing. Irrelevant to my fact finding! Discussion ends here.

Oh, you are doing some facts finding ? Then have you found out how they make >24% pa to pay the "investors" the 24% ? Don't tell me it is business secret ?

"Discussion ends here" because it contradicts your wish ? 

Since you have bought and how much are you getting now??? NOTHING  because it's sitting in your safe waiting for the price to go up. What if it doesn't and what if the price drops???
How much premium did you pay when you bought the gold bar??? Don't tell me it is at spot price.

When the price goes up and you sell, how much discount will the gold smith shop deduct from spot price??? If the price drops, worst for you. It is between 20-25% off the spot price.

In Genneva, it is savings, it is not investment. If you pay a premium for it, you get paid an interest on the premium amount every month. When you sell back to Genneva, you get back the fixed price you first paid when you buy. So u just earn an interest each month from the time you buy to the time when you decide to sell back to Genneva. So u don't lose on your original price you paid for the gold bar.

It is just a savings account secured by gold. Just like when you put in your money in the bank, you get a bank book and you get interests per year at say 3.5%. When you want to withdraw, you just take out your original amount you put in. That's in a nutshell.

POINT 2.
Say the gold spot price is now RM150 per gm. Goldsmith spot price will be say RM180/gm, that is RM18,000 for 100 gm. Say Genneva rate is RM200 per gm. Therefore if you buy a 100 gm, it will cost you RM20,000 at Genneva's rate.

So pls put into your own savings account RM18,000 and pay yourself 2% each month. If I were to put RM20,000 in Genneva, Genneva will pay me 2% each month. I get additional RM400 each month not out of my own pocket. But you are paying yourself. Who's the fool??Very shallow analysis with no substance. Work out cash inflow and cash outflow. Any increase in your inflow??It is that simple. Tsk tsk tsk.........

Argument ends. Bye bye.

They say the so-called hibah is you pay yourself. Do an inflow and outflow mental calculation, and you know they are so shallow in your thoughts.

i did not buy from Genneva becaue i am not foolish enough to pay an extra 18 to 25% premium on spot gold prices
for a gold BAR so THAT i can be paid 1.5% interest or hibah or whatever you wanna term it!
i paid 3.6% premium for gold COINS at $280 and i am in the positive.

In a NUTSHELL, you are paying yourself....................................

Point 2.

Its doesnt cost me any extra to buy the gold bar from somewhere else and the extra permium i would have paid to
genneva is VERY safe earning interest and dividends from somewhere else.
Something you did NOT mention is that the interst contract is for 6 months, not FOREVER.
Is this on purpose?
Deposts in banks earn interest FOREVER as long as the deposit is in the account.

Whos the FOOL who thinks Genneva is paying him? 

---

Added on June 26, 2012, 7:43 am

  i pay myself without having to wait for Genneva!   
Whos the FOOL? tsk tsk...................

I'll show you a simple calculation:

I buy gold from Genneva say RM20k for a 100gm Gold bar. My cost layout is RM20k. I earn 2% per month, that is RM400/month. Contract is 3 months so in total i earn RM400x 3 months=RM1,200. End of 3rd month i sell back to Genneva at RM20k. So total earnings is RM1,200 in 3 months. Since my outlay is RM20k and when i sell i get back RM20k, that is even. My net is RM1,200 paid by Genneva. If you can't get this arithmetic right, please go back to primary school!!! How did you come to the conclusion that i paid myself???    that is your arithmetic teacher getting angry with you!!

I'll show you a simple calculation:

I buy gold from Genneva say RM20k for a 100gm Gold bar. My cost layout is RM20k. I earn 2% per month, that is RM400/month. Contract is 3 months so in total i earn RM400x 3 months=RM1,200. End of 3rd month i sell back to Genneva at RM20k. So total earnings is RM1,200 in 3 months. Since my outlay is RM20k and when i sell i get back RM20k, that is even. My net is RM1,200 paid by Genneva. If you can't get this arithmetic right, please go back to primary school!!! How did you come to the conclusion that i paid myself???    that is your arithmetic teacher getting angry with you!!

how do they end this bisnez in the event all customers returned back the gold for buy back at purchased price... food for thought... 

So they depend on new customers to supply the cashflow..................sounds familiar?

they will do fine as long as there r new customers coming in & the gold price keeps escalating...

Yes.

Thats the idea.......

when the gold price drops to 1520, they offered 3% to bring more sales, the queue is incredible...

So they depend on new customers to supply the cashflow..................sounds familiar?

Most people don't THINK.. due to greed or pure stupidity.

Occam's Razor - follow the money,
IF it doesn't make sense on how the investment can AFFORD to pay out to investor +make $ +cover cost of operations... something's not kosher.

When did my bro become a jew?   

hehe off-topic a bit ar mods
Bruce Lee taught me to "take what works, drop what doesn't" - who cares whether its Jew's, Aborigine's, Afrikaan's, Chinese, etc.

Back to topic
True mar - how does Genneva makes / gets the $ to pay investors such returns %?
Would-be investors just need to do the most simplest and thus, most probable (Occam & his razor ) - follow the money trail

The thing about Genneva is that they are very smart and devious.

They used the investors to become part of their money making machine.
What better testimony when the investors exprience first hand success of the biz plan and become sellers themselves?
The thinking stops there..............