Someone sent me a question to ask me about Genneva Gold Sdn Bhd.
According to the information on the website, Genneva Gold sells you Gold Bullion at a 2% discount to the market price with a buy-back guarantee.
At the end of one month, the buyer can
The deal seems too good to be true because the company is essentially selling you gold at a 2% discount and giving you a free put option.
There doesn’t seem to be any downside for the investor. If the price of gold goes down, he can sell it back to the company. If the price of gold goes up, he can keep the gold and sell it on a secondary market by himself.
There is a “Terms and Conditions” to the 2% discount thing though. I would be interested to know what they are.
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