Saturday, February 27, 2010

Will You Take Part In Gold Investment Which Promise High Return Within Short Period Of Time?

Recently, a friend introduced me to a gold investment scheme where I can purchased the gold coin @ gold bar and I will get a certificate and at the same time, monthly interest will be deposited to my saving account (as long as I still keep the gold). Yes, on monthly basis. And the interest rate is much much higher if compare to the current bank interest rates.
She had been approaching me a few times. Everytime, she will bring along her gold investment certificates and also those of her clients to show me how much she is earning by just taking part in the gold investment scheme. The deal sounds to be too good. So, I do not take part in this gold investment scheme. More, the minimum purchase is 50g. If the gold price is RM130/g, so 50g will cost me RM6500. May be to some of us, RM6500 is a small amount. But for me, at this moment, RM6500 is still a huge amount.
I just had some feeling not to trust this quick money scheme. Do you invest in such scheme? You are free to share your opinions.


  1. It sounds like a get rich fast scheme.

    Anyway, if you are interested in gold investment, why don't you go and check out gold passbook account from Maybank and Public Bank. I believe they are more safer since they are offered by banks with solid background.

  2. Hi LSC, yes, I have a Public gold investment account (also you may refer to my previous posts). But, there's quite a huge difference in term of the returns. You're right. Sound like a GRFS. My friend herself had invested less than 1 year. So, I still trust my Public Gold Investment more.

  3. Hmm..looks like the gold scheme has moved to East Malaysia. I been approached with this idea also. The only diffence is that my investment would total up to RM15K. The interest difference said to be around 15% per 6 month.

    To make this sound real, supposely the gold has a certificate and you can hold the gold if you want. But holding the gold will yield less interest for you when the 6 months mature.

    This is a classical physchological trick.

    1st. The gold you hold may not worth as much as your investment even though the gold might be real. Worst if the gold is fake.
    2nd. Knowing how greed works, you surely would not want to hold the gold since you will get less interest. Thus, the syndicate earns more later on.
    3rd. In both scenario, you end up losing and arm and leg when the company run away.
    4. You may earn like 30% in a year, once they accumulated enough. They will run. Then you lose 100-30%=~70% of your money. The point is that you still lose in all aspect.

    Just tell your friend to quit while ahead. If things are so profitable, don't think the investment company would like to share their money printing scheme to everyone else.

  4. Kris, thank you for your sharing. My friend checked the gold with Bank Rakyat, and it's pure gold. I agree with you, sooner or later, the company will be suddenly missing in action. I think she's not going to quit now as she's earning high from her own investment and she also earns commission for those new investors introduced by her.

    There's no easy earning on this Earth...

  5. Truly inspired by your post.I hope people will be not be that guillible to fall into this potential trap.

  6. I got the same invitation by my friend as well. One month 2.5% return. To me, i am pretty sure this won't last long.

    You need 40 months to get back your capital which is a long long time.

  7. Hi Kris, Thank you :) Hmmm... I think a lot of people will invest because of the quick and impressive returns. And they can keep the physical gold coins/bar. It's very tempting!

    Kampunginvestor, 40 months... a lot of things can happen during this period of time... and mostly human heart are greedy... once, they got back the capital, they will re-invest (if the scheme is still around) to hope for better returns.