Beware of GOLD Investment scheme

By | October 2, 2012

Beware of GOLD Investment scheme

Beware of GOLD Investment scheme
When someone approached you for GOLD investment, you have to be extra careful as many has been a victim of GOLD investment company. Some are using acknowledgement letters issued by Bank Negara to solicit investments from the public in financial schemes involving gold and other precious metals.

Early this week, Thirty-seven (37) gold investment scheme firms were found not complying with the law stipulated by Bank Negara Malaysia (BNM) and were not registered with the Companies Commission of Malaysia (SSM).

Bank Negara says the introduction of the Financial Consumer Alert List is to provide the people with a quick reference and guide to make decisions on various financial services offered by non-licencees.

The list essentially refers to the list of unregulated individuals or companies which have been mistaken as being licensed or permitted by regulators, including the Securities Commission, Domestic Trade, Cooperatives and Consumerism Ministry, Companies Commission Malaysia and Cooperative Commission of Malaysia on their business transactions.

Bank Negara said the list comprises companies or individuals not licensed by the regulators and who have received numerous inquiries from the public.

Gold Investment risk ?

Bank Negara said the people were free to undertake outright buying and selling of gold. However, the people should be cautious of various illegal deposit-taking and investment schemes, especially in precious metals such as gold that enticed them with high returns.

Bank Negara said these schemes promised high returns over a short period of time with the option to buy back the gold.

“These schemes could be “get-rich-quick” schemes or termed as Ponzi schemes. The investment money collected are used to pay out as “high returns” to other investors.

The central bank advised the people to check with the relevant authorities when dealing with companies or individuals offering seemingly attractive business opportunities or financial services and not licensed by the relevant authorities.

BNM Contact

For further information, the people can contact BNMTELELINK at 1-300-88-5465 and the Financial Consumer Alert List is available on Bank Negara’s website (


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