This news report on Genneva Gold was broadcasted on Channel 8 last night.
For those who do not understand Mandarin, this is the summary:
- Genneva Gold is in trouble and unable to fulfill its monetary and gold obligations to its customers.
- Amount of gold involved is suspected to be more than 500kg.
- Company declined to be interviewed and only allow buyers to enter its premises.
- Their scheme works by allowing customers buy gold from Genneva at 20-30% price above spot rate, but the company will give a cash rebate of 2% every month.
- Customers given many reasons for delay in payment. They were given “payment vouchers” which were not redeemable.
- Lawyers warn that customers dealing in such schemes should always be aware of the full terms and conditions, and more importantly the financial strength of the company. There is a lawsuit ongoing.
- CASE reports that complaints against such companies have been on the rise and they are concerned about the companies.
- As the schemes are not regulated, they do not fall under the purview of MAS. However, at least three of these companies have been already included in the MAS investor alert list.
- Customers relating their experiences and unhappiness.
- A group of 20+ investors have gone to CAD to ask for help. The police declined any comments as to whether they have commenced any investigations.
- Another two gold companies have offered rescue or buyback plans for affected Genneva customers. Customers are required to join their schemes to get a good price.
- The public is warned to check the financial strength of these companies before doing any business with them. These two companies are actually operated by the same person and they are also on the MAS alert list.