Guest Post: The Gold Guarantee Blowing Up In Singapore?

Tyler Durden's picture

Originally posted at The World Complex blog,

Today's reminder of the importance of taking physical delivery of gold at the best price possible comes from Singapore.

The Gold Guarantee is (was?) a company based in Singapore allowing "investments" in gold. They had two separate schemes. One allowed victims to take delivery of their gold, but at an approximately 30% premium,  albeit with a monthly repayment of a small portion of the premium for as long as the gold was held (and the company remained solvent) and an option for the company to buy back the gold at a price related to the spot price. The other scheme offered a gold certificate and a higher monthly payout.

The monthly payouts amounted to over 20% p.a. I am unaware of any method by which a company could sustain such payouts through normal business practices. Were I aware of such a business, I would invest in it.

Today's Straits Times reports (unfortunately this story is not in the free online section) that the owner of the company is unreachable, and the offices have been shuttered since about January 9. The last communication most shareholders had was an email sent on January 8, announcing a merger between The Gold Guarantee and a similar company called Asia Pacific Bullion.

Customers have been dropping by the office and showing up at the CEO's home since he vanished, but to no avail. Some are facing losses of hundreds of thousands of dollars.

The latest gold price reported on the company's website is dated January 7. What appears to be an apologist blog posting for the company is dated January 3.

Here is a link to a discussion group which includes some unfortunates who bought gold from this company within the last few months. Note the advice they have received.

The scheme looks like a carbon-copy of the Geneva scam which fell apart in October.

Avoid certificates, and if you take delivery of gold, verify the spot price (it should be part of your due diligence).


Here is an article on the topic by a local financial blogger.

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ParkAveFlasher's picture

Buy it.  Take delivery.  Own it.   Loves it.   Loves it raw and wriggling in our fingers.

trav777's picture

 I guess when suckers are this stupid you almost can't help but steal from them, huh?  I mean it's almost a fuckin obligation to take their money

knukles's picture

trav, you are destined for the PR job at Goldilocks.

Eally Ucked's picture

And he's right. Idiots are idiots and you can't help it!

Larry Dallas's picture

Markets were inefficient. Now intelectual capital is the most inefficent mechanism out there.

Trav is right.

willwork4food's picture

What?? Markets were inefficient? What do markets have to do with morality IN the markets?

GetZeeGold's picture



My mentor many years ago....bless his soul.....informed me the markets were a snake-pit.


That guidance has never failed me.

LawsofPhysics's picture

Indeed, nothing is "guarranteed" aside from death and taxes.

DaveyJones's picture

and, for empires, that your last leads to your first

LawsofPhysics's picture

That which cannot be sustained, won't be.  Taxes have little to do with the human ponzi.  Call it what it really is.

Big Slick's picture

DEATH!!.... by unga bunga.

EnslavethechildrenforBen's picture

Boobs, if they don't feel real, their not.Same with your Gold. Feel it or find a better girlfriend. Bitchez

TerminalDebt's picture

If they're not real it could be a man

James_Cole's picture

This sort of scam isn't much different than Kitco selling silver coins way above spot price.

If you're in these markets just go to a bullion bank and buy over the counter style, you'll get the best price and most reliable product. Most cities it's pretty easy to buy gold bars. 

I mean, especially Singapore, c'mon!

nom deplune's picture

My mentor many years ago....bless his soul.....informed me the markets were a snake-pit.


That guidance has never failed me.


That's some profound shit GZG, thanks for sharing. I'll be trading when the market opens using this "information."


Seriously, 20 ups for, " were a snake-pit."  JFK!



Larry Dallas's picture

I didn't say anything about Morality.

thisandthat's picture

Everyone is an idiot until he's not, any more - specially if you've been mislead and lied to for as long as you can remember.

When was it that you started considering gold as a savings/investment option and why haven't you done it before that?

TheGardener's picture

Cause you and your thinking were serf before and gold is the money of kings.

Thomas's picture

Well, John Carney at CNBC seems to believe that it doesn't really matter if the gold is present, only if people think it's present. Read this puppy and weep...

slightlyskeptical's picture

Gold certificates are just "hot potatoes" . You don't want to be holding them when the music stops playing.

nmewn's picture

I was thinking the same thing...its almost like a pedophile looking at a child while justifying his/her thoughts.

knukles's picture

Now I'm gettin' a woody!  Jesus thinkin' about Goldman, the Illuminati, the City, Princess Anne, clowns and pedophiles....
Just toooo much........

DoChenRollingBearing's picture

I'd better bring ya back to earth, knukles.

Camilla, Hillary, Janet Napolitano.  Woody gone yet?

nmewn's picture

In the immortal words of Hitlery..."What difference does it make?!?!"

knukles's picture

What happened?  Where am I?


(running from room, hands waving, screaming)

strannick's picture

There's no difference between Gold Guarantee and GLD. GLD holders are just 'more sophisticated' suckers.

nope-1004's picture

Or does GLD have a more sophisticated coverup technique?  It's all the same - the entire financial system is a ponzi.  I tell you what's coming next:  People that have cash in the bank in savings or checking accts and it goes missing, or frozen, or whatever.

If you down possess it, it fair game in todays criminal world.  Wake up people!


MeelionDollerBogus's picture

You got that right. With my charts goldpricemodel 2013 roc 52-week & 2013 goldpricemodel 277 week ROC 04 price mapping & 2013 silver price model 277 week ROC from gold price projection

I'm a lot more daring about the paper trades.

If I should win big then see the whole thing wiped out or reversed I will cry not one tear & I will not be shocked in any way shape or form.

I still have my actual money in gold & silver coins with me & it is beyond the reach of such banking alchemy.

verum quod lies's picture

If you don't see the difference then you are likely the sucker. Making such sweeping statements is not just imprecise but silly.

strannick's picture

If you dont see you arent looking.

Dr. Engali's picture

Damn you didn't have to give the poor guy nightmares.

knukles's picture

Talkin' about nightmares.  Some time ago I remember an incredibly vivid dream wherein I was in mortal danger, desperately frightened, couldn't escape death.
And woke up.

In my dream I woke up... so it seemed all too real.

Panic time.
I mean serious panic attack.
Which woke me up for real, heat pounding, sweating, shaking....

Never had that happen before... waking up in the dream and believing I was awake and it being real.

Not good.

Maybe time to go read some Umberto Eco... something sane.
(rolling eyes)

Dr. Engali's picture

It's called mescaline .. It's the only way to fly. Hey it just sounds to me like you need to unplug man....

Calmyourself's picture

The hot little white rabbit girl, yum, yum..  The dream like quality of that entire door / software selling scene was artitastic..

Dr. Engali's picture

The whole movie was a work of art in my book. I can't tell you how many times I've watched the movie and still pick up things. The rest of the trilogy was good, but the first movie was a masterpiece.

August's picture

Just for the record, the first movie IS a masterpiece, but the two follow-ons are best forgotten.

I was going to say "were pretentious incoherent crap", but began feeling generous.

Henry Chinaski's picture

I have mortal danger kill-or-be-killed combat dreams nearly every night. People, racoons, monkeys, dogs firearms, alligators, car wrecks, plane crashes, hand to hand, you name it (never clowns).  Fortunately, the awake-sleeping panic attacks only come once or twice a year, although those usually have an exorcist/satanic posession vibe that can't be explained, so they stick with me for a good long time. 

Sweet dreams, bitches!

fonzannoon's picture

I have the same two dreams. the first one i am in a fight and everytime i punch it's like a slow motion mush punch into a pile of sand. the other one is i am playing in a ballgame and i don't have my glove and i borrow one and it does not fit and i can't get my hand in it and the ball is hit to me. 

drives me fkin crazy, both of em.

knukles's picture

Oh I got a recurring one where I'm running and it's like slow mo.... Can't get anywhere people are walking quicker.....
And then flap my arms and fly a small distance.... Really slow


But the coolest is finding and maintaining a presence in that temporary space somewhere between asleep and awake... Meditative area
Ever so tranquil, understanding the term serenity and knowing peace

Bastiat's picture

Nicely expressed.  I know exactly what you mean.

Optimusprime's picture

When I was younger I would have flying dreams.  Later they became floating dreams--had to "swim" through the air to make progress--also could not attain much altitude.  Now it's mostly falling softly, then when I hit the ground there is no impact, but rather the momentum gets transmitted into a glide a few inches above the ground. I am "standing" upright but "skating" so to speak over the ground--going down stairs is fun because it gives you extra momentum.

+1 on the "in between" state.


The "moving too slowly or incompetently in facer of danger" dreams are fairly typical.  Flying much more enjoyable.

donsluck's picture

I have always had flying dreams. Just last night I had the most amazing flying dream. I skipped past the sky, mountains, earth and ended up in the black vacuum of space. Just nothing, no site or sound, for I don't know how long. Then thousands of spinning moons appeared, and I came back down to earth, flying to my house.