The news about the Suisse International scheme, with losses exceeding S$35 million, baffles me. (“Over 260 investors lodge police reports on gold buyback scheme”; Feb 3)
While it is sad that investors lost their savings, the red flags were there for all to see. First was the 20 to 25 per cent payout per buyback transaction.
Our Central Provident Fund pays only up to 5 per cent, which is considered good by today’s standards, given the low interest on deposits. A high return spells high risk, so one must question its legality, conditions, investment safety, et cetera.
One should also consider if such investment products make financial sense. If one cannot fully comprehend the business logic or risks involved, one should avoid those investments or, at least, consult reliable and financially literate or savvy friends or relatives.
Second, the company owners are individuals, one of whom is an undischarged bankrupt, which spells suspicions. Solid, institutional backing and the credibility of an investment firm and its management is paramount.
Third, investors were told the firm’s local account had to be closed, to avoid the Monetary Authority of Singapore’s scrutiny, and accounts had to be set up in Hong Kong. Why should a legitimate operation fear our financial watchdog?
Fourth, the company was set up in 2013. Already, there had been negative publicity over similar transactions, for example, in the Genneva gold trading case. Why do investors not heed these reports and learn from these real-life experiences in Singapore?
The usual suspect is greed, which throws caution to the wind, attracted by huge, quick returns. In this digital age, though, one can do a lot more reference and business checks on companies and people before investing.
The public should be reminded to not be blinded by gold at the end of the rainbow but to do their due diligence and seek a second opinion.
Another tendency is to invest based on personal recommendations from friends who are investors themselves. But if things go wrong, they do not guarantee the safety of the investments. Singaporeans should be circumspect in their investments and not be gullible.
While it is sad that investors lost their savings, the red flags were there for all to see. First was the 20 to 25 per cent payout per buyback transaction.
Our Central Provident Fund pays only up to 5 per cent, which is considered good by today’s standards, given the low interest on deposits. A high return spells high risk, so one must question its legality, conditions, investment safety, et cetera.
One should also consider if such investment products make financial sense. If one cannot fully comprehend the business logic or risks involved, one should avoid those investments or, at least, consult reliable and financially literate or savvy friends or relatives.
Second, the company owners are individuals, one of whom is an undischarged bankrupt, which spells suspicions. Solid, institutional backing and the credibility of an investment firm and its management is paramount.
Third, investors were told the firm’s local account had to be closed, to avoid the Monetary Authority of Singapore’s scrutiny, and accounts had to be set up in Hong Kong. Why should a legitimate operation fear our financial watchdog?
Fourth, the company was set up in 2013. Already, there had been negative publicity over similar transactions, for example, in the Genneva gold trading case. Why do investors not heed these reports and learn from these real-life experiences in Singapore?
The usual suspect is greed, which throws caution to the wind, attracted by huge, quick returns. In this digital age, though, one can do a lot more reference and business checks on companies and people before investing.
The public should be reminded to not be blinded by gold at the end of the rainbow but to do their due diligence and seek a second opinion.
Another tendency is to invest based on personal recommendations from friends who are investors themselves. But if things go wrong, they do not guarantee the safety of the investments. Singaporeans should be circumspect in their investments and not be gullible.
