Any one heard of Gold bar trading?

[Speedmaster1979]

Hi all,

I would like to check with fellow mates here if anyone heard of the above?

During my sales visit, i overheard my client talking about it and to simplified and short cut as below;

Buy gold bar from Company A which they will pay you 1.7% interest every month for 3 months with a black & white contract that they will buy back from you at the same price that you purchased 3 months back, which you get back for prinicpal amount but what you gain is the 3 months interest.(If after 3 months, you find that the gold price increase, you can choose to keep the gold bar or sell outside if you can get a better deal than them and company A will only offers 3 months buy back)

Sorry if I confuse as I only managed to hear something like this,

Anyone came across this type of lobang? Not so cash rich to buy gold bar,kekeke!

[seiko.citizen]

Havent heard of that type of gold bar trading personally.

[MsLucifer]

gold trading comes in the form of buying it as papers or buying the bar itself. difference is there is a 7% GST for the physical gold. there is a bank in SG that offers gold account also.

i assume there will be the risk of your value of investment when gold prices drops (not that it has been dropping)?

[seiko.citizen]

you mean like this?

if my understanding is correct, for buying gold on paper (vs buying/holding physical gold) there is also admin charges as well as storage keeping fees.

[Cartman]

One thing is selling physical gold is at a lower % of your purchase price so the increase in price within the 3 months has to cover that for you to make a profit selling the Gold elsewhere (I assume no more interest) and not back to them at purchased+interest

[kadios]

Any idea If I can ask a relative tourist buy gold using my cash and save on the 7% gst?

[seiko.citizen]

can be done. but when you bring back to sg? you will be taxed again. unless you have a way of bringing under the radar.

[Cartman]

Any idea If I can ask a relative tourist buy gold using my cash and save on the 7% gst?

Buy from Malaysia and drive in.

[Darkangel]

i Heard of this scheme before, but the scheme isn't as beautiful as it seems. I can't rmb the reason cos it was some time ago . Let me go dig out info on this during the weekends when I m back. But always bear this in mind, if there's a deal that seems too good to be true, it usually is. If not I won't have to work/study liao...hahaha

[triton]

heard of this. i know at least 2-3 people who has bought. so far seems ok. but will it burst? i dont know.

Hi all,

I would like to check with fellow mates here if anyone heard of the above?

During my sales visit, i overheard my client talking about it and to simplified and short cut as below;

Buy gold bar from Company A which they will pay you 1.7% interest every month for 3 months with a black & white contract that they will buy back from you at the same price that you purchased 3 months back, which you get back for prinicpal amount but what you gain is the 3 months interest.(If after 3 months, you find that the gold price increase, you can choose to keep the gold bar or sell outside if you can get a better deal than them and company A will only offers 3 months buy back)

Sorry if I confuse as I only managed to hear something like this,

Anyone came across this type of lobang? Not so cash rich to buy gold bar,kekeke!

[Darkangel]

http://www.jonathan-quek.com/?p=6798

This is a good read.

[stektan]

Be careful if such scheme. You never know if the gold is real 99.99 or otherwise. Usually if you try to sell gold, you will have to sell at a discount unless prices has gone up. Btw, no more gst on gold after 1 Oct. Government just announced during budgeting. Or you can buy from Uob counter at airport.

[ngck12]

Im in the gold business so i know the players, stay away from companies which tend to pay you so call 2% every month etc. The safest is to buy physical gold at spot price, with or without gst for small amount.

Usually other companies tend to mark up their gold by some 10-20%, they will use that mark up to pay you your "interest" every month. Another trick is that, some companies try to offer non-LBMA gold, which in return consumers may face difficulties selling away the gold. The world only recognises LBMA approved gold.
http://www.lbma.org.uk/pages/index.c...d=29#currentau

A simple calculation: eg. usd1,750/oz, multiply by 32.15 to kg, multiply 1.25 to SGD.
1750 x 32.15 x 1.25 = SGD70,328.13/kg or +7% = 75,251 thereabout
Do not buy gold much above the spot price.

Also, consumers who buy in bulk can ask for CIF Singapore assay centre, assay first then pay money.
This is international standard, consumers can ask for this.

*note the smaller the amount of gold the more expensive it is. 1000x1g/bar price is different from a 1kg/bar price

Any qns feel free to PM me.

[triton]

appreciate your input.

Im in the gold business so i know the players, stay away from companies which tend to pay you so call 2% every month etc. The safest is to buy physical gold at spot price, with or without gst for small amount.

Any qns feel free to PM me.

[ruzmidah]

Hi..

This scheme is a classic ponzi scheme.
Basically the scheme will continue as long as there are new investors AND if the price of gold goes up.

Once it unravels, usually the owners will disappear and the last ones in are usually the ones holding the debt.
So be one should be careful with such schemes.