Within a week’s hoopla happening everywhere (in the public and the media) about the bulging gold investment said. And again for disadvantaged communities.
There are many similar schemes on offer from gold investment boom of a scene in the last 2-3 years. Starting from gardening gold until the last one is to buy gold at a higher price than the market price.
Some people may be confused by the scheme. The simple explanation is that some companies offering to sell gold at prices 25-30% above market price. Then we were promised would receive a minimum return of 2.5% per month or the equivalent of 30% per year. This makes a lot of people interested.
What actually happens is, the money is returned to us in the form of the actual monthly yaaa our money too. Even that is never explained is where the difference in 25-30% of these funds and used for what?
It certainly managed by companies that raise funds. In other words, investors actually “borrowed” the funds to the company to be twisted around, on the pretext of underlying assets such as gold bullion, which is already a right of investors who purchased the premium price.
Now, the question on “play” Where’s the money? It may be traded to the stock market, or indeed made play forex buy gold futures contract. That was never explained to investors is the risk of the transactions of the fund.
Society is seduced by the promise of physical gold as a great investment plus the return. And when the transaction is stalled alias or loss can not be played, then the blur is the owner of this company.
Genesis-Abal Abal investment can provide a lot of feedback for us all. There are several conclusions that we can draw are:
1. Educate the public about financial products and investment is still less so
2. Our society is still much to dream of sudden wealth, a result
3. Society does not “alert” and quickly seduced by the lure of “interest” or for very high yields
4. Weak laws on investment and fundraising, outside of which is set up now
5. Weak regulation and supervision beyond that already exist, because the regulator overseeing its scope of work as stated in the law, outside of it goes into the realm of common law (criminal fraud)
6. And many other PR
So, as long as those things above are not solved, then get ready every year there will be a new fraud schemes and different modes. So … as said Bang Napi …. Beware.