Investors of The Gold Guarantee have been hit with a new problem.
Although the owner of the company had run away and defaulted on the company’s buyback obligations, the investors comfort was that well, at least they still had their gold with them.
It appears that they are now having problems selling their gold to a willing buyer.
Pawnshops for one are refusing to buy the gold from them.
The main reason cited is because they do not want to run the risk of CAD seizing the gold from them for investigations. CAD declined comment on the issue.
Gold investors find no guarantee in their assets (Straits Times)
However, UOB does considers the buyback on a case by case basis. Even then, the buyback price is significantly lower than what investors bought their gold for.
The good news is that after so many gold scams, MAS is finally going to do something about the loophole in the current regulation. They will review whether there is a need to refine the current regulatory framework.
The code of advertising for products with exaggerated claims of returns will be tightened as well.
Unfortunately, for the current group of gold fraud victims, these measures come too little too late.