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).

Update:

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

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Mon, 01/28/2013 - 04:50 | 3190700 MeelionDollerBogus
MeelionDollerBogus's picture

haha could have sworn the next part was gonna be "now they're all scuba diving dreams, somehow these crop up since reading zerohedge"

Sat, 01/26/2013 - 09:17 | 3187525 Burnbright
Burnbright's picture

I have a recurring dream that is exactly like the movie Clue. I am always the detective with the same people and each time someone different gets murdered and someone different is the killer. I was even murdered in it once, it is the best dream I have but it only happens once a year or less. 

Sun, 01/27/2013 - 17:32 | 3189518 Blue Boat
Blue Boat's picture

@ fonz and knukles - you guys need to think about what adult beverage you've been drinking the nights you have these dreams. Seriously.  The ONLY time I have wacked out dreams is when I have martini's or some other hard booze. Never, otherwise.

Sat, 01/26/2013 - 00:21 | 3187306 Dr. Engali
Dr. Engali's picture

That first dream is funny Fonz because I used to have one similar when I was younger. It would haunt the crap out of me because I felt like my punches did nothing. Now that I'm older I find that in the dream I have to restrain myself because my punch is so f--Ing deadly. I don't know why or when they changed but they did. Now it's that second punch that wakes me up.

Sun, 01/27/2013 - 13:34 | 3189176 Conax
Conax's picture

I lived in a rough neighborhood as a kid, you had to fight to find your place in the pecking order and be left alone.  Anyway, during a dust up I would sometimes feel like I was weak, not punching effectively so I would concentrate and pour it on..

Not good. I saw a victim of mine the following Monday in school and he looked like he'd been hit by a truck.  One guy told me that it was the adrenaline making me feel shaky or out of punching power when just the opposite had happened.

The boy looked awful so I remembered not to do that anymore.  Fighting sucks, everyone gets hurt.

Mon, 01/28/2013 - 04:39 | 3190694 MeelionDollerBogus
MeelionDollerBogus's picture

You guys are wierd. Mine are zombies. Almost always zombies. Mostly not even swarming, chasing, biting, nothing anymore. Just "hmm, kinda gray today, wonder what the weather's like out." "oh look, it's zombies again, how quaint'

(after the first decade this really is not a scary dream of any sort)

Fri, 01/25/2013 - 23:47 | 3187284 LetThemEatRand
LetThemEatRand'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)."

Fucking clowns -- they always send in the others first.  I've been working on a remote interlock system on the VW door.  Think it's going to work but I need one more ring to test it.

Sat, 01/26/2013 - 02:44 | 3187413 willwork4food
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It's funny we should all be talking about dreams. But since we are, I've had a re-occuring dream since at least '97 before the dot com. All financial upheval, dark, fighting-especially in grocery stores and fundamentally centered around the loss of faith in organized modern day Christianity. Still happens today.

Something the Bible says about the passage about the end times: " The old men will dream dreams, and the young will see visions..."I think I got that passage right.

 

Sat, 01/26/2013 - 05:00 | 3187452 OutLookingIn
OutLookingIn's picture

Dreamer.

Nothing but a dreamer.

Put your hands in the air. Oh no!

Sat, 01/26/2013 - 06:52 | 3187477 savagegoose
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i prefer crime of the century

 

http://www.youtube.com/watch?v=bHTTr9y9ObE

 

where or what will it be?

Sat, 01/26/2013 - 08:25 | 3187493 Svendblaaskaeg
Svendblaaskaeg's picture

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

 

Congrats! - You are very close to controling your dreams, have fun!

My program for tonight: sex and torture, staring Nicole Kidman and Herman Van Rompuy et al.

Sun, 01/27/2013 - 13:38 | 3189187 Conax
Conax's picture

yikes!

You're going to screw Von Rumpoy and torture Nicole Kidman?  Get help, man!

Fri, 01/25/2013 - 22:43 | 3187201 e_goldstein
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You forgot Elizabeth 2.

Fri, 01/25/2013 - 23:22 | 3187257 DoChenRollingBearing
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I also forgot two more: Angela Merkel and Dianne Feinstein.  Two more from the Hall of Fame!  Shame on me!

Fri, 01/25/2013 - 23:32 | 3187271 knukles
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Feeling faint....

Sat, 01/26/2013 - 10:22 | 3187560 DaveyJones
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ecstacy will do that

Fri, 01/25/2013 - 23:41 | 3187279 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

uhhgg.

Sat, 01/26/2013 - 03:10 | 3187422 Non Passaran
Non Passaran's picture

Assuming the list is now complete, are you saying Pelosi is a go?

Sat, 01/26/2013 - 18:48 | 3188244 e_goldstein
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With enough booze, lubricant and the proper bag...

Sat, 01/26/2013 - 13:46 | 3187830 DosZap
DosZap's picture

I also forgot two more: Angela Merkel and Dianne Feinstein. Two more from the Hall of Fame! Shame on me!

DoChen,

Uhmmmmmmmmmm, you forgot Piglosi.(;*

Sat, 01/26/2013 - 14:02 | 3187859 DoChenRollingBearing
DoChenRollingBearing's picture

How could I forget our beautiful and wonderful Nancy Pelosi?!

EXTRA shame on me!

Sat, 01/26/2013 - 12:02 | 3187684 Ewe235
Ewe235's picture

Hey, Elizabeth 2 from the 1950s-60s wasn't bad, she had HUGE royal titties.

Sat, 01/26/2013 - 03:37 | 3187435 chubbyjjfong
chubbyjjfong's picture

Hey come on now.. Hillary is a beautiful woman.  Powerful and intellectual.  Stimulating and sensual.  "SAY MY NAME CHUBBY!!" 

It can't be just me?... Right?... Anyone?

Sat, 01/26/2013 - 14:26 | 3187892 donsluck
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I don't know why she is so reviled. Could it be that she dared to forgive?

Sun, 01/27/2013 - 17:59 | 3189563 Blue Boat
Blue Boat's picture

She is reviled by men because they are threatened by her. She's whip smart and has bigger balls. That's why.

Sat, 01/26/2013 - 05:59 | 3187467 are we there yet
are we there yet's picture

Nancy Pelosi deflates like hope and change.

Fri, 01/25/2013 - 22:29 | 3187177 nmewn
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Crime syndicates all.

Fri, 01/25/2013 - 22:55 | 3187220 Eally Ucked
Eally Ucked's picture

You're not gettting any woody, you're too old but still you can drool!

Fri, 01/25/2013 - 23:35 | 3187273 knukles
knukles's picture

So that's what that wet....

What? I can't hear ya....

Fri, 01/25/2013 - 22:32 | 3187183 disabledvet
disabledvet's picture

for the record I REALLY don't want to know what people are thinking...and quite honestly i have no idea why anyone else would either. insofar as "taking gold on the promise of delivery" is about as easy as it comes. not to toot the horn of Governments here but "you can always be a coin collector." that product has indeed been "assayed." and that is pronounced "ass hayed" in case anyone is vundering. in other words "before you believe that the vunder veapon will achieve victory have your gold ass hayed." this also is true when marking the financing of the entire Federal Government to model instead of say..."to taxpayer" as is normally done since if the former is done "yet again vee have vallen for the ass hay effect" and are all the more poorer for it: http://www.youtube.com/watch?v=vqClWdOcWog

Sat, 01/26/2013 - 14:04 | 3187862 DosZap
DosZap's picture

Bill Maher On Guns And Civil Liberties In America

Well he's right to a certain point, but totally incorrect on the 2nd.

When it goes, THEN you will have no say, and no way to ever regain those that have been illegally legislated away.

And FWIW,I can not stand that arrogant pompous asshole,and if I met him I would be locked up, he is a total Libtard.(he should be directing this to the ACLU, where are they?).

 

Sat, 01/26/2013 - 14:14 | 3187880 WillyGroper
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Oh for Pete's sake, he's funny as hell. You should be laughing even more so knowing that he donated $1M to the "Choom" before he pulled his head out of his ass.

Sat, 01/26/2013 - 14:27 | 3187894 donsluck
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I believe you will see the ACLU defending the 2nd. Against a hostile population, as usual.

Sat, 01/26/2013 - 01:03 | 3187351 Anusocracy
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You are referring to those who support government, aren't you?

Sat, 01/26/2013 - 21:04 | 3188452 GAAP is crap
GAAP is crap's picture

"A fool and his money are lucky enough to get together in the first place"

- Gordon Gekko or Trav?



Fri, 01/25/2013 - 22:48 | 3187211 El Oregonian
El Oregonian's picture

Oh, I can hear a boating accident on the horizon...

Sat, 01/26/2013 - 03:05 | 3187419 clara-to-market
clara-to-market's picture

One of these European pigs is gonna start printinting their own currency...eventually.

What's gonna happen to the price of gold?

I see a deflationary nightmare in the future.

There's still too much debt.

http://angrysinner.blogspot.kr/2013/01/yesterday-i-cooked-my-own-dinner.html

Fri, 01/25/2013 - 21:44 | 3187098 zorba THE GREEK
zorba THE GREEK's picture

You ain't holding, you ain't got squat.

Fri, 01/25/2013 - 22:01 | 3187131 DoChenRollingBearing
DoChenRollingBearing's picture

Physical gold, bitchez!

Fri, 01/25/2013 - 23:39 | 3187274 JLee2027
JLee2027's picture

And no paper. Ever.

Sat, 01/26/2013 - 10:43 | 3187579 bigkahuna
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Toilet paper. When the SHTF (no pun intended), it will be a luxury!

Sun, 01/27/2013 - 18:51 | 3189614 Blue Boat
Blue Boat's picture

Listen, let me just tell you --- I totally get holding physical for your longer term wealth preservation, etc.  But, you people have missed some GOOD trading profits in GLD and SLV.

As usual, when viewing things on a black and white basis.....much gets missed.

Sat, 01/26/2013 - 00:09 | 3187308 Shell Game
Shell Game's picture

Gold:  follow these instructions..

Sat, 01/26/2013 - 02:31 | 3187408 Likstane
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The ultimate stacker!!

Fri, 01/25/2013 - 21:47 | 3187101 SonOfSoros
SonOfSoros's picture

It's actually a Ponzi scheme but I guess greedy losers never do learn do they?

Fri, 01/25/2013 - 21:57 | 3187119 lewy14
lewy14's picture

Damn you know I keep thinking of Singapore as the honest place with the smart money.

I suppose I should think again.

Sat, 01/26/2013 - 04:46 | 3187451 Dr. Sandi
Dr. Sandi's picture

They don't take kindly to fraud and theft in Singapore, let alone gum chewing grafitti artists. So I can understand why the CEO is on the lam.

Sat, 01/26/2013 - 10:25 | 3187562 DaveyJones
DaveyJones's picture

had similar thoughts

Fri, 01/25/2013 - 21:48 | 3187102 unrulian
unrulian's picture

just got back from the river and all my certificates were gone!!!

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