As I have been given to understand, Genneva will buy back at the price at the inception of the 3 month contract, but this is buyback is only a practise not a guarantee, and then again this practise is only a company practise, not one of their industry's as Genneva is not part of the national goldsmith's association.
Herein lies the risk -the promise to buy back at the price contracted is not guaranteed!

And so, when (current) spot prices have risen or remain above the company's buying cost for a particular batch of gold delivery, it makes good business sense to honour the 3 month contract but when (current) spot prices fall or remain below, it makes bad business sense to buy back from customers at the earlier contracted prices, cuz the company will hv to dig into it's reserves to pay the diff. So how long the company can or is willing to withstand such losses is the question.

But then, this happens with every trading business -sometimes the business makes, sometimes it loses. The company only makes when it's well run & managed over & it's only over the long-term that one can tell.

This post has been edited by ccslink: May 22 2012, 11:01 AM

Those blinded by the greed will not buy your/my logic.

Indeed, this (Genneva) is a very good case study. We shall wait and see...

For some people (like me) prefer to "lose the opportunity" than to lose my hard-earn money.

Genneva has a good strategy against gold prices going down. To them it was always about the cash flow.

------------------------
Let's say for example:

50g for RM 10k was your previous contract.

-When the prices go down they still want to keep your RM10K. How do they keep your RM10K for the renewal? Easy they will tell you that your RM10k can get 55g and tell you to renew with more gold.

-When prices go up they will tell you that in order to keep the minimum 50g gold you need to top up. now lets say 50g is RM11K, so you need to top up RM1K more.

--------------------------

You see how it works. When prices go down they try to keep the same amount of cash flow. When prices go up that's when they grow the cash flow by making you keep the same gold weight. Genneva acts more like a finance company than a gold company.

If what u say is true, then it's got shrewd business sense & if get listed on the stock exchange perhaps it'd be a good stock to invest too if they share their profits.

U forget about their hibah+commission pay out about 2-3% per month, where is this money come from?

I don't think the clients don't know where to buy cheap gold. The target market here is those who wants convenience. Even if you hold their hand and give them cheap gold they will not be interested.

Anyways, I don't think the main issue in this is how the company makes money and if they purchase it at a premium. Nobody is considering the waiting period without holding anything for each renewal. Holding nothing is riskier than holding gold at a premium price.

what if customer decided to cash out upon end of contract ? will they get back the same amount of capital invested?

---

Added on May 24, 2012, 9:41 amWhat I know the commission to customer on 1.5%, how agent are paid i 'm not sure.

This post has been edited by GoldChan: May 24 2012, 09:41 AM

The "hibah" is 1.5%- 2% depending on grammage if I'm not mistaken. 3% was given during some special occasion. Agents are paid around 0.8% if i'm not mistaken. It works on a binary system.

They are suppose to give back the same amount. But i haven't seen anyone that I know of cash out yet. So whether they really pay back is another story.

If you really are going to for genneva better know your agent well. I hear those that know their agents get paid on time and get their gold quite fast, while those that don't might get their stuff delayed often.

Who knows for sure... Its like insurance/finance companies saying they have all the financial specialists to generate the returns like magic. Its like government bonds giving great returns but yet the governments are still in debt.

i got 2% -2.2% monthly as i always maintain 1kg. My agent told me they earn 0.5% per month +0.3% after he achieved 3.5m sales

Read all the 5 pages... and had nothing more to add, except

"A word to the wise is sufficient."

It seems Genevva is still hot

i just got approach by two agents of Genneva..

after all the story that they gave it to me... my first thought, it was too good to be true..

dunno much about gold tho.. then check back at forum, this geneva still hot ...

dunno wanna invest or not.. BNM din give license to this company also..

and you guys, the brochure that they showed me, got Mahathir picture inside it.. and Rosmah and PM... while holding the Genneva cert..

I was like..... ... all the big2 guys inside this scheme... dunno whether the photo is real or not..

damn!.. i din take picture also to show u guys the brochure..

read this thread again -Throughly. All the guys have already answered.

This post has been edited by ccslink: May 28 2012, 04:50 PM

scary thoughts after reading all above as seeing it at kuchai lama can't believe so many ppl into this gold thingy...just to share:

http://mybiebie.blogspot.com/2012/05/genne...al-or-scam.html

Swiss Cash was also in the international scene going for years before they got clamped down.... So your analogy doesn't work.

Come across this interesting post in a Chinese forum (bbs.sgchinese.net) about Genneva which offers gold investment opportunities in Singapore. My apologies to those who can't read chinese.


现在通胀厉害，黄金价格涨到S$1445每盎司的历史高位，于是很多人包括我也想把部分资产换成黄金保值。
黄金的购买渠道有：
1、实体黄金，可去UOB直接购买
2、纸黄金，包括gold saving account和黄金证书
3、ETF黄金基金、黄金股票等等。
现在介绍第4种方法，以非常典型的一个公司Genneva（翻译：金玉华或金利华）为例。
如果有人告诉你，无论金价是跌还是涨，投资黄金每年能得到24%的回报，你相信吗？
你会不信，但有人这么做。
找Genneva买金条，千足金，按当日金价（以UOB为准）计算，加收20%的费用，你能得到
1、购买至少3个月，每月返还2%，3个月后卖回公司，把你最开始的所有钱返还给你。
2、购买不足3个月，每月返还1.5%，1个月后卖回公司，把你最开始的所有钱返还给你。
3、也可以选择不要2%的利息，计入下个月累计。
4、如果3个月后不卖回公司，就默认你以超出市价20%的价格保留了此金条。
举例：你投S$12K，买了价值S$10K的金条，每月返还2%，即2%*12000=S$240，一年就是12X240=2880。
并且3个月后，你随时可以卖回，取回以前的钱。
说实话，很不错的回报哦，如果你在后面加个0，投资12万新币，每月你可以得到S$2400，可以不工作了。
注意，以下是真的
1、Genneva确实具有买卖二手黄金的资格，它的金条也确实是货真价实的千足金（纯度999.9）
2、Genneva在马来西亚，新加坡，中国都有分公司，马来西亚有超过15万人购买它的黄金。
3、确实给你2%的回报，也确实以你付出价格的120%收回金条。
----------------------------------分割线-------------------------------------------------
一般人会想：
1、实际上我是借钱给Genneva，每年得到24%的固定回报，而Genneva给我黄金作为抵押。
2、就算Genneva是骗子，金条在我手上，我最多亏20%，即当时多付的钱。
何况1年后我就赚回这笔钱了，再何况一年后金价说不定还涨了20%呢。
3、如果我把2%的利息累积到下个月，不要1年，大概9-10个月我就收回本钱了。
于是购买Genneva金条的人，如过江之鲫，趋之若鹜。

真实的情况是什么？
在这种模式下，黄金的涨跌和你有关系吗？没有。
很奇怪，你买的是黄金啊，为什么黄金涨了你赚不到钱呢？因为只要黄金涨幅没有超过20%，你就一定亏。
因此，这家公司的本质是以黄金为载体进行集资，把多赚的18%拿来付下一个买家的利息，这样不断累积成一个巨大的金字塔。
是不是很眼熟？
这就是庞氏（PONZI）的变种。Ponzi最开始是以邮政票据为载体，大量敛财，45天翻倍，收益率为100%；麦道夫升级了，以复杂的衍生金融产品为载体，每年保证收益10%；
Genneva以黄金为载体，只赚你20%，当然也不让你亏完，只亏20%-30%。
在这种情况下，你的回报只是2%每月，也不错啊。
前提是这个公司是信誉可靠的正规公司，否则垮了的话，你拿着黄金在手上，这部分钱就死了，你必须慢慢等它涨过30%才赚钱。
（为什么是30%？因为你把你手里的黄金卖给金铺，是要打折扣的，一般是5%-10%）
什么情况下会垮？当大部分人觉得怀疑，要求马上兑现金条，Genneva cash flow马上就有问题，因为它只能通过下家来赚钱，没有其他的投资收益，这时就垮了。
这究竟是个什么公司呢？逐一看它的自我介绍
Genneva有30年的黄金交易历史-----假的，实际上新加坡Genneva在2008年1月才注册。
Genneva是MAS允许的----假的，实际上2011年2月，MAS将Genneva列入alert list，也从未给予从事此类活动的license。
Genneva是BNM（马来西亚国家开发银行）承认的---假的，BNM早就正式声明，从未涉及金条交易，否认授权Genneva。
Genneva的3位高管是声望很高的拿督---假的，2009年、2011年这3个人被控796项罪名，涉及洗黑钱，非法吸取公众存款；2011年4月在吉隆坡开庭裁决。

总结：
1、这是一家以庞氏模式营运的集资公司，没有实体业务，靠下家的钱养活上家，我没有资格说这是骗局，因为吉隆坡还没有开庭，没有真正定罪。
2、庞氏模式决定了你想搏一把可以，但是必须早进，如果你08年、09年进去，现在退出或者早点退出，恭喜你，你没有做最后一个傻瓜。现在已经是2011年3月，
我认为这个公司4月就会破产（只要法庭定罪），现在进去，最后一个傻瓜可能是你。
3、这是高风险的投资，你胆子大，进的早，跑得快，就可以赚钱；要是你很贪心，2%都不要，就想最后拿一大笔钱，那么恭喜你就拿着手里的金条等着某一天涨30%，才能解套吧。
4.最后，事出无常必有妖，要是黄金那么好赚，那么多黄金基金经理都加入Genneva好了，大家不要贪心，看清楚这类打着实体黄金买卖的幌子，实际上非法集资的公司！

can u pls provide a 1 or 2 line summary in English pls?

Do I need to sell back the gold to Genneva in order me to get the interest?

Actually why you guys choose Genneva???
Banks also got Gold account.
If you don't trust bank, why trust Genneva?
If want internationally recognized goldbar, that would be PAMP Swiss gold bar.
It comes with birth certificate number......

This post has been edited by anudora: Jun 25 2012, 06:48 PM


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