Genneva Gold Investment Scam

Scam Likelihood: 100%
Targets: Working Adults

Note:
One can consider this scam to be a relic of the past, but there are much to learn from the past. Besides, we should never be too careful, especially when Genneva Gold Investment Scam is still operational under Genneva Malaysia Sdn Bhd, while Genneva Sdn Bhd had been stopped to operate by Bank Negara

 The "Scheme":

Looking at the ever increasing gold price, interested in investing in gold? Why not invest in Genneva Gold Investment Scheme?

Firstly, Genneva is a legitimate gold dealer, who will only sell you real gold bars and bullion.

Secondly, gold is not your only benefit in the deal. If you purchase your gold with Genneva, you will be rewarded monthly with a "Hibah" gift, that is between 1.8-2.5% of your original investment. That means an astonishing 20-30% return rate annually!

Thirdly, Genneva does not mark up the gold price and sell them to you so to pay off your monthly reward. Instead, Genneva sells you the gold at market price, like all other jewellery shop.

Lastly, upon the expiry of the contract, you get to sell back to Genneva at the original value in which you purchase at. Of course, you can keep the gold, or sell the gold to someone else at your pleasure.


The Catch:

Sounds good? Hold on, there are many problems with it.

1) An amazing 20-30% annual return rate is too high for a business to remain sustainable in the long run. Unless the money they are paying you monthly come from somewhere.

2) Genneva does not mark up the gold price, but follows the gold price of jewellery shops. This is plain wrong. The gold price at the jewellery shops are marked up 25% (if not, who pays the craftsman). Gold bar does not have that premium. So, they pay you the premium back as Hibah slowly every month? Not too bad, but is that sustainable. If not, they are just going to run off with all the money after a while, (or even get Bank Negera to raid them).

3) According to Genneva, they do not guarantee to buy back the gold. Surprising? Not really. While the gold price was increasing, why wouldn't they buy the gold back at the old and lower market price? But once the gold price halt or drop, they stopped doing that immediately, because they will be dumb to buy them back at the high cost.


The Shield:

Do not think of getting rich fast.

If the deal is too good, think through it. Will it sustain? If not, when will the model collapse?