Genneva has been under investigation since 2009 and still running. Many say SCAM SCAM SCAM! But still many go in to buy. Why? They do give what they say they would give:

-The gold is real.
-They do pay up their dividends

Telling buyers they were scammed while they are receiving dividends isn't going to convince them its a scam. In fact they will just promote this too good to be true result. I haven't heard of any that cashed out yet. So maybe that's when the wrong stuff happens where they just won't pay you and force you to keep the gold.

Genneva has a ton of customers. Genneva is also in Singapore, Hong Kong and China. If its a scam its probably going to be like Malaysia's Enron. Where its like making people so much money until it blows up and then becomes a worthless stock. It will be in the news all over the world!

Their goal is to possess as much gold as possible. Thier MLM setup of their company has made the company expand very big and global. They get customers money to roll in more gold. And the more SnPs they have the more likely they can get bank loans to expand even further. Not too sure if they take bank loans though, but they are expanding fast.

Basically the gold was increasing 50% every year. Giving 24% p.a. (2%/month) as hibah doesn't cover the rise of gold's price. Lets say you bought the minimum 50g for 10,000 RM. End of the year you will have 12,400 RM. But you need 15,000RM (50%+) to keep the min 50g. You have to top up 2,600 RM more to renew the contract.

Its really like you bought a gold bar for them with your 10,000. The price increase to 15,000 at the end of the year. The 5000 profit is split where you get 2400 and they get 2600. They promised you 2400 (24%) the rest is for them.

Of course gold is no longer increasing like that anymore so its interesting to see what happens.

Sadly because some pushy agents told them the strategy of taking loans. Because the hibah return was so much stronger than the loan interest.

I was told by an agent that I could even use Credit Card Loan to get more gold for more returns. That is seriosuly insane! If Genneva collapses so does my life is I do this strategy! Of course I didn't buy from that insane agent.

Only invest what you can lose. The Genneva engine works, and do give the returns they promise, but it can still be a scam.

The next 5 years they are still here making all their customers happy. Only the next 10 years Genneva cashes out and declares bankruptcy, because their board wants to retire and perform the perfect escape plan to another country.

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

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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.

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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.

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.

Can't always focus on their financial plans and programs to see where they make money. They can make money on just their events/seminars. They usually have entrance fees for those, its not free. Sometimes they have it for free for promotional purposes. But they do have paid seminar events about gold investment in details.

These events are great mixers to meet investors. Remember they invested in Genneva what makes you think they won't invest in other products during the event. Its a salesman/agent heaven. An insurance/property agent will easily be happy to make a sale there by telling them not to put all their eggs in one basket and also invest in their financial plans.

Another one could be collecting information and selling it. The S&Ps they collect can get some serious valuable info. Who's a big investor and who's not. Big investors usually have more big money to invest else where. Who wouldn't want their contact?

Maybe Genneva is doing this. A lot of financial institutes do. They do get money from somewhere and not always straight from the products they sell.

This 3% stunt is quite scary. Its move they are doing in order to get their old customers to top up. Yes they have to top up in order to get the promotion. So they can get more money into their cash flow.

This move look like it can either build or bust Genneva. If gold price were to go up then yes genneva is safe with much more cash flow and this stunt worked. If gold prices fall hard this stunt will scar them bad!!!

But what is also scary is the new document they are making the buyers sign. In that documenet it states that Genneva guarantees nothing and it will not guarantee it will buy back. NO MORE GUANRANTEES this time. Its like a big hint to pull out.

-Of course people are concerned how they make money or generate money to be giving out such returns to all their clients. People don't like the idea of investing in a dying company.

-Its not a trade secret. Some smart agents can explain the concept of how Genneva can grows themselves. Its just many agents are clueless. Heck many insurance agents here are quite clueless so can't expect much from Genneva agents.

-KFC's trade secret is brand franchising. Not their chicken.... Many chefs can make the same or better fried chicken. But KFC is the most famous one because it is the most recognized fast food franchise in the world! Its the McDonalds concept of just being everywhere and in your face!

-As for banks. If you know people you can interview them where they invest. But good luck with that. Banks are very big corporations that have their money diversified everywhere.