QUOTE(aspartame @ Apr 29 2017, 08:47 PM)
Short term or long term is not the point. Transaction cost and management fee too high. At 2%, it is like the more I invest, the more I pay you 2%. It is like your company are depositing FD with me and I have to pay you 2% every year. LOL. The money comes from me! If I invest in a fund and the fund provides expertise in managing my money to beat the market, then 1% or 2% management fee is still justifiable. Now retailers invest with you and you do not provide any expertise and you charge 2%? that's ridiculous! Oh well.......I hope retailers will see that this is a rip off. However, 99.99% of the time they are not aware of such things. Not surprising given forex and whatever fast money schemes have done well with even more ridiculous things. This is a good business proposition for you, congrats. I hope I have done my tiny part to let retailers know that in the long run, whatever small amount they invest is meaningless to them ( and hence the word hedging is laughable) but collectively they represent a 2% income to your company. Of course, you will say it will cost a bomb etc storing those things but just like how the banks work, I am quite sure only a small % is kept in physical to meet the small "exchange into physical" requirement.
BTW, whats the personal financing you talk about?????? it sounds fishy already...sorry..couldn't resist
We are very transparent about what we charge - https://help.hellogold.com/en/category/fees/
- we want customers to know exactly what the fees are so that they can make an informed decision
As I have said in a number of other posts, the gold is fully allocated which means that 100% of the customers' gold sits in the vault 100% of the time. In fact, we are over-allocated in that we have more gold sitting in the vault that our customers gold has. I have summarised what I have posted in previous replies here and I will include the link for you to review at your leisure
At the end of every day, HelloGold publishes a number of statements that show 1) the amount of gold our customers have with us 2) the amount of gold that we have with our vaulting agent according to our records and the corresponding bar numbers 3) a link to our vaulting agent's site that also displays the amount of gold that they hold on our behalf according to their records with the corresponding bar numbershttps://help.hellogold.com/en/how-do-i-know...stored-is-safe/
Over and above this, if customers want to check on the gold, we can organise for them to visit the vault in Singapore. Obviously this necessarily needs to be arranged during the working week and during working hours
In terms of the personal financing question, in ASEAN, less than 20% of loans granted to individuals were from banks or non-banking financial institutions. In contrast, more than 25% of individuals borrowed from friends and family, private lenders and employers. Where unsecured bank loans are available, the financing costs are extremely high with an effective lending rate of 15% to 25% in Malaysia as an example. SO we have tied up with Aeon Credit to try to help our customers get access to more affordable shariah loans.
Say you have 10 grams of gold that is worth RM2000, and you need access to emergency cash, Aeon will provide you a loan for 70% of the value of the gold for a year for a fee that will be equivalent to 8+% p.a (but this is subject to confirmation). So you don't have to sell your gold to get cash and you have a year to pay off the loan. Obviously if you don't pay off the loan on time, Aeon will instruct HelloGold to liquidate the gold and repay them the outstanding debt. Any remaining monies after the loan has been settled would be returned to the borrower