Thursday, October 4, 2012
Gold trading in Malaysia with Genneva
With low bank interest rate and market volatility, many investors in Malaysia are turning to investing in gold for faster and better returns on their investment. Gold is a recommended hedge against inflation protecting the purchasing power going forward.
Two days ago, a gold trading firm Genneva's offices and its affiliates in the country were raided by a joint-team from four NGOs - the police, Bank Negara, the Companies Commission of Malaysia and the Ministry of Domestic Trade, Cooperatives and Consumerism - for various suspected offences.
Genneva’s Singapore subsidiary was also raided.
Anxious Genneva Malaysia investors and trading agents thronged the company's headquarters in Jalan Kuchai Maju 6 and its Penang hub to find out if their savings are safe in the wake of the raid. Many of them had invested large sums of money in the company's gold trading scheme. More..
Worried investors hope Genneva will be allowed to resume business soon.
A doctor has invested RM400,000 a year ago and has received an average return of RM8,000 monthly. The money is used to fund his son's tertiary education in London. Another daughter has just enrolled in a college in Kuala Lumpur.
Another investor said she depends on the returns on this gold investment for her family needs as she does not have any other income.
Yet another needs the monthly return to fund medical bills.
This is how it works at Genneva Malaysia S/B: (Click to enlarge image)
Background of Genneva Malaysia Sdn Bhd
According to the Gold Bullion Entrepreneurs Association of (GBEAM), there are no clear guidelines regulating any aspect of gold trading in the country and that the trade has been unregulated since the 1980s.
The association believes in the business model by Genneva Malaysia Sdn Bhd as it was based on a genuine platform.
“The action taken by Bank Negara could be based on a misunderstanding. GBEAM hopes that the Government will provide clearer guidelines to gold traders in the future,” the association said in a statement yesterday.
Image source: The Star
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