http://www.bnm.gov.my/documents/2012/Senar..._sesawang_n.pdf

LOL unauthorized and not approved by BNM, but they are not doing anything to take these company down. More and more msians getting into these if BNM do not stop them

Look who is on item #23......

*Ahem*

"Regulations are red tape...we COULD have got the licensings and approvals IF we wanted too...but we are too busy earning money for our valued clients"

*ahem*

"the list is outdated. We have got all the approvals already. Believe me..."

This post has been edited by EddyLB: Jul 21 2012, 10:03 AM

*koff koff*
"We've got BNM directors and Syariah Compliance senior auditors on board with us to correct the misunderstanding/situation."

It is actually not that difficult...IMHO. The below figures is approx for most gold investment with 'discounts', as I do not have their actual numbers, but the modus operandi is roughly as follow.

1. Sell gold at lets say 24% above market value. Take customer money.
2. Pay back 'interest' at 2% per month so after 12 months equal to selling price.
3. In the mean time use the gold price margin (24%)(free! ) money to LEVERAGE on gold options (call or put).
4. If gold price goes up, everybody happy, the company get returns from investment, the customer redeem back gold price at the purchase value (not the physical value) and earn 24%. Merry goes round again...and again...
5. If gold price goes flat or lower, the company do not lose money, maybe even earn if they have the right option (remember the money is free as a deposit from customer, in which the higher purchase value more or less equal to the interest), the customer redeem back gold, but is given actual delivery of physical gold . Or they can still give you redemption, but with 'other' people money, temporary until gold price goes up back.
6. Now customer is stuck with this physical gold in hand. If the gold price is flat the customer earns nothing as the 'loss' is covered by 'interest', but they might feel good that they 'earned' (because they hold the gold at the 'perceived' value) but actually did not. If the gold is lower, then when and if the customer sell the gold, they will take a loss in value (the higher price paid & the difference in value), but mostly will try to convince themselves to keep longer and earn more. The customer psychology will and does not register a 'loss' as they have both the physical & the 24% 'interest'

Basically in the above, the company is basically selling you a PUT OPTION on gold, in which you take all the risk and they have free capital to bet on leveraged derivatives on the market.

So you take ALL the risk, they take SOME of the reward, So you untung or they untung?

There are many variation of the above, mix some words (hibah!PHD!Complex!expert!), rotate the purchase price, interest and discounts around you get a new scam every day. So rahsia pecah liao ... how?

This post has been edited by gark: Jul 21 2012, 12:51 PM

Yes, it is free capital from greedy investors. If gold price going up, no problem. The business model works. In fact, when the customers renew, they have to pay to the company margin of higher gold price --> cash inflow

But if gold price comes down, they offer this guarantee to buy back at ORIGINAL price.

When gold price comes down, customer will insist on cash instead of holding gold. That is the time it will affect their cashflow. How do they service the loss ? You know I know lah

Another important ingredient in this business model (and in all other ponzi scheme) is customers' confidence. If no fresh customers funds + existing customers insist to cash it out, the business will fall.

The company is recently :

1. declared non-halal by Islamic authority
2. in the Bank Negara list of "non-authorised nor approved under the relevant laws and regulations administered by BNM"
3. gold price looks stagnant or heading down (interest 2% still have to service)
4. increase the interest to 3%pm to attract old customers not to cash out (ie avoid cash outflow)

What does that mean ?

This post has been edited by EddyLB: Jul 21 2012, 01:43 PM

Anybody know anything about another physical gold investment scheme called CSGFM - Premier Fine Metals Trading, it works something like Genneva M'sia?

what company is that. it's better check wether they are regulated and approved by security commssion, bnm or ssm b4 u make any investment.

Haha....
*ppl like us just talk without substance or points like /k/*....

i think the contracts are only for 3 to 6 months max. So in effect, they dont pay you all the premiums back.

you still get scerwd of your capital.

You're right. You will NEVER get back yours premiums back based on the "Hibah" giving. Understanding the contract period is decided by the company according the GOLD price status. If the gold price increased, you need to topup the $$$ if you want to continue. You will always behind them.......

They run the gold investment scheme same as Genneva, but 3 to 5 days customer can receive the physical gold in hand. Heard the company has changed to E-casear.

Totally scam laa... Please don't invest everyone. The enforcement's are just giving you time to cash out before they take action...... Only time will tell...Better save than sorry. Else you wont celebrate hari raya / deepavali / christmas and CNY wooo....

It's coming...really really soon...
Cash out now....

Weird, since when Genneva is an investment company? I tot they are in gold trading biz i.e. buy/sell gold like poh kong/tomei?

This post has been edited by sengih: Jul 25 2012, 01:33 PM

ALL the more, one should beWARE of such companies...........its appears to be UNREGULated....

so whos to protect YOU?

this is getting interesting ... so GENNEVA Syariah falls under which company? It seems there are still people investing with the company and was suprise that PatEagle is promoting it in lowyat forum. Hmm ... this investment is too good to be true and fishy ~

If they give to you a Physical Gold as exchange with the money has been spend should be OK but not good enough without black & white where they stated, >100% they will buying back the physical gold at current price & at any time as you wish.

If they only provide/give you statement showing how many gold has been bought/invest by you than pleased avoid this trading transaction. Cause 200% they don't even have physical gold in hand (this type of scams has been known globally), what ever they have in hand just for showing only to attract their next victims..

yes trading of gold is not under BNM purview but one needs to be extra care as pointed below: