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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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Sat, 01/26/2013 - 01:11 | Link to Comment awakening
awakening's picture

lulz that will be their next investment of choice. I wonder how much GLD and SLV (those are not typos btw) those tubes will hold. :P

Sat, 01/26/2013 - 01:45 | Link to Comment RockyRacoon
RockyRacoon's picture

About $40 worth of PVC and a Schrader valve.   Looks like I need to make a trip to Home Depot and O'Reilly's.

Sat, 01/26/2013 - 09:37 | Link to Comment nmewn
nmewn's picture

Don't forget the dessicant and/or nitrogen gas ;-)

Sat, 01/26/2013 - 10:17 | Link to Comment Gold Dog
Gold Dog's picture

Don't forget the gas powered post hole digger with the six foot attachment. Use fiats for your supplies.

Sat, 01/26/2013 - 13:15 | Link to Comment moonstears
moonstears's picture

Genneva was backed by Sauds and the "Sultan of Maylasia". I recently got a email from an African prince in need of $6000 to send me $6M. Guess I better rethink sending that check out!/;)

Sat, 01/26/2013 - 02:06 | Link to Comment q99x2
q99x2's picture

They should make all gold certificates soft so you can use them if you run out of toilet paper.

Sat, 01/26/2013 - 02:46 | Link to Comment Peter Pan
Peter Pan's picture

So much for a sucker being born every minute. It's more like every second and perhaps every millisecond.

I wonder how Germany and the others who have their gold stored in the USA are feeling?

The simplicity of the scam only reveals the depth of the stupidity exhibited by the investors.

Sat, 01/26/2013 - 02:47 | Link to Comment Likstane
Likstane's picture

our core principles-

honesty

loyalty

trust

integrity

HAHAHAHA

Sat, 01/26/2013 - 05:22 | Link to Comment NuYawkFrankie
NuYawkFrankie's picture

What? No Cherry On Top ?

Sat, 01/26/2013 - 05:17 | Link to Comment NuYawkFrankie
NuYawkFrankie's picture

Confucius, he say -

Sting make preeple Poor in Singapore

Sat, 01/26/2013 - 06:28 | Link to Comment sessinpo
sessinpo's picture

And to think, I got thumbs down for advocating taking actual physical, not paper and NOT storing it with someone else. Notably, mayhem korner was upset when I presented this logic.

Mayhem korner: simply said "It's about sovereignty when Peter Pan asked why Germany would want to store its gold in the USA. I was vindicated by the thread that the FED would take 7 years to give Germany it's gold.

http://www.zerohedge.com/news/2013-01-16/bundesbank-official-statement-g...

That is assbackwards. If you want to protect your sovereignty, you want control over your valuables, your assets. You don't hand them to someone else for safe keeping. So for all you that gave me down arrows, you are F'ed in the head. And I will maintain my position and will wait for YOU to present a logic argument to refute it, instead of just give a down arrow and hiding.

Sat, 01/26/2013 - 09:51 | Link to Comment negative rates
negative rates's picture

Someone obvioulsy proved or trusted your (or their) ability to not be responsible with such pm's. No wealth goes unaffected by him. Even the inheritance game is a scam all the way to the top of their justice system. And he has committed hisself to the ugly end of his life in keeping and passing down his wicked ways.

Your theory may hold water, but the banks own the buckets used to transport said water, and therefore they make the rules until someone can prevent their advancements.  

Sat, 01/26/2013 - 11:20 | Link to Comment quadcap
quadcap's picture

I down arrowed you for even caring about the down arrows.  Otherwise, you're right on.

 

Sat, 01/26/2013 - 07:37 | Link to Comment Deacon Frost
Deacon Frost's picture

Sessinpo, as I have said before, there is a plethora of government trolls infesting this site quickly giving negatives on many pertinent comments.

You are not wrong…

Sat, 01/26/2013 - 10:05 | Link to Comment Sudden Debt
Sudden Debt's picture

it's not like a 100k in gold takes that much space...
You can put them in a small numis map for 60 coins which takes about 7 inches high, 5 inches wide and is 1 inch thick. You can put that anywhere in a safe way....
So why pay for it when you haven't even seen it?

Sat, 01/26/2013 - 10:42 | Link to Comment Downtoolong
Downtoolong's picture

the owner of the company is unreachable

He's on a quest, seeking out Bernie Madoff for spiritual guidance and counseling.

This really sucks, especially if you used your gold certificates as margin collateral to buy AAPL stock at $700.

Sat, 01/26/2013 - 10:47 | Link to Comment shovelhead
shovelhead's picture

It's not really much different than buying a $200,000 house for $750,000.

All it takes is an irrational belief that the price will keep rising or that a slip of paper will be redeeemable for phys in the future.

Roll those leaded bones.

Sat, 01/26/2013 - 10:53 | Link to Comment jbvtme
jbvtme's picture

nothing that a merger with Citi and some QE suppositories couldn't cure

Sat, 01/26/2013 - 11:02 | Link to Comment Kingkongballs827
Kingkongballs827's picture

Protect Your Guns, Ammo, and Gold in the ground. Moisture Free Forever! Check it out here.

http://www.ebay.com/itm/160963721916?ssPageName=STRK:MESELX:IT&_trksid=p3984.m1555.l2649

 

Sat, 01/26/2013 - 12:08 | Link to Comment WP45
WP45's picture

Go to Home Depot and get the same thing for $25.00 instead of $275.00/

Sat, 01/26/2013 - 12:14 | Link to Comment IridiumRebel
IridiumRebel's picture

Seriously........I mean if you wanted such a thing I am sure they got it at a hardware store. You are not doing reverse tech on a drone here.......jeez.

Sat, 01/26/2013 - 11:20 | Link to Comment monopoly
monopoly's picture

Ya gotta keep it all safe, (buy a good one) where YOU can see it every day. And keep it insured. Tell no one else. Simple and safe.

This is not rocket science. Amazing how stupid investors are. And for all that is right. Stay away from banks deposit vaults. Please.

Sat, 01/26/2013 - 11:24 | Link to Comment Stud Duck
Stud Duck's picture

A great  (greatest in my opinion) Will Rogers said"it is not the return ON my money I am concerned about but the return OF my money".

 

Sat, 01/26/2013 - 12:33 | Link to Comment falak pema
Sat, 01/26/2013 - 12:57 | Link to Comment e-recep
e-recep's picture

they are predicting the price of gold in 2018!!!???

ridiculous.

Sat, 01/26/2013 - 13:27 | Link to Comment moonstears
moonstears's picture

Yep. The conversion to 2018 Excellent Supreme Emperor Obama's(ESEO)"World hope O credits" alone is tough to figure as they don't exist YET!

Sat, 01/26/2013 - 14:01 | Link to Comment epwpixieq-1
epwpixieq-1's picture

Considering the historical references, for about 2-3 thousand years, it would be prudent for a "respected" company to give forecasts by pricing something that is more volatile in something that is A LOT LESS volatile, so:

In such an such year the PRICE of the 100 US dollar in gram(s) of gold will be 40,60,80,100,200 or whatever one predicts PER GRAM of GOLD.

If done so, at least we will have some normality as a base and not an inflatable balloon.

Sat, 01/26/2013 - 12:42 | Link to Comment loveyajimbo
loveyajimbo's picture

Can't wait to start reading about these sorts of ripoffs being met with a hail of large caliber gunfire...  I can see why the crooks strongly support the gun ban!  Including the crooked politicians and corrupt bankers who have been buggering us for years...  It may begin soon... I wonder if that rancid newspaper will print the home addresses of all congressmen??

Sat, 01/26/2013 - 12:58 | Link to Comment moonstears
moonstears's picture

I read the thread link, I agree they should have considered the 30% upcharge, but If I was reading correctly, the company gave them gold in hand, they were pissed 'cause they couldn't convert back to cash, with the company?? They were losing 2% return per month?? Better than alot of Ponzis. So they have something, the overpriced bar in hand, as I read the thread, right?? Could be worse, if that's the case.

Sat, 01/26/2013 - 13:21 | Link to Comment moonstears
moonstears's picture

This made me think of something. So, I had a friend few years ago lose 100 ozt silver in a break in of his home. Sent insurance claim in and a BIG well known insurer and learned that his metal was "cash" for their purposes and would be replaced, limit on "cash" was $200. HE was PISSED. Word of caution to all barbarous relic holders.

Sat, 01/26/2013 - 13:52 | Link to Comment DosZap
DosZap's picture

Way off topic sorry.

But Ilinois just got downgraded to A-, WORST state in the union.

Could not happen to a bigger libtard Chi Town thug group,and RahmBo(what a dick) is busy pushing Big Banks to cut off lines of credit to gun makers, and removing state pension funds from investing in them(their oss w/ double digit great gains over the last 3-4 years.)

 Conservatives from these hell  holes need to pack their crap, and move to the South.

Seems to be the only place where logic, and common sense is still alive.

Sat, 01/26/2013 - 15:56 | Link to Comment resurger
resurger's picture

fuck certificates, gold should be held like a 45 colt next to your scortum

Sat, 01/26/2013 - 22:22 | Link to Comment BigInJapan
BigInJapan's picture

Wtf is wrong with buying coins? Doesn't take a whole lot of space when were talking about the "hundreds of thousands of dollars" that "some" lost.

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