Genneva Gold Bullion Investment

[ck_jun]

www.genneva.com.sg

according to the site, you buy gold from them at a 2% discount, at the end of one month, you can sell back to them at the original 100% price, thereby earning 2% immediately.

Now i would understand if i pay and never see the gold, that this is a scam. BUT i will get to carry the gold bars home! and some investors supposedly has taken the gold to test and claim it is genuine gold.

Its too good to be true, 2% returns a month, 24% a year. but i hold the physical gold. So how does this work?

[Arnold]

Welcome to Scamwarners.
It seems to have been running for seven month or more, with no reports of anyone being scammed. Just sites like http://investmentsg.blogspot.com/2009/0 ... kbats.html, that like you can't understand what's in it for Genneva.
I don't think we can help you. We can identify scams, but not say that a particular offer is legitimate. This is outside our area of expertise, I'm afraid. Even if we could legally give investment advice.

[trinity]

I'm familiar with this scheme. Let me say that the gold is not sold at a discount but at a premium of 25% above spot gold prices. The 25% is taken by the sellers, other uplines or "consultants" and Genneva takes a cut.

The business can continue to run as long as:-
a. gold prices keep moving up
b. more members buy & later trade the gold back to Genneva.

Anyone buying the gold bars is actually buying expensive gold. Just because you hold the gold does not mean it is secure. A lot of people are holding gold through this scheme & others that have been shut down. When gold prices start to drop ( which will happen eventually ), and everyone who thought gold is a safe investment starts to sell, you can be sure the value of gold you hold is much much less what people wants it for.

For the moment, the company has been smart not to break any rules in Malaysia, yet. That is why it is still around. But don't get into this. I have heard of people getting into similar schemes and got burnt when it was shut down.