Me & My Money Series (Sunday Times)

[KopiKat]

It just say buy back guaranteed. Noting about price right ?
So is just an avenue for investor to offload. Ofcourse he will skim another huge margin off it.

Cory

Hi Cory,
The best part of my wife's cousin offer was the company would buy back at a "guarantee" price. Such that the gold investment seemed to have upside but no downside; downside was the "guarantee price".

If it waddles like a duck, it must be a duck. HA! HA!

In their website, they gave a worked example that they'll buy back at the original selling price (which was ~30% above market price). The guarantee appears to be that you'll make at least the discount of 1.5-1.7%.

That's why me thinks there's a very high chance of failure in the event gold price doesn't move up 30%. In the meantime, they'd have consumed part of their initial 30% margin for Operating Expenses (Salary, Office,...) and they have to utilise the leftover to hedge / earn enough to make up the difference in the event gold price drops or doesn't move up by 30%.

Beware...