When Genneva Malaysia
Sdn Bhd's offices got raided by Bank Negara Malaysia just recently, it
was a very big news on TV. So the first thing my parents ask me is
whether I have invested my money to them. My answer to them is a simply a
"NO", I am not brave enough to part with my money.The reason that they
are so fearful is that last time my parents invested in Swiss Cash
without me knowing it. If I were to know about it, I will surely advice
against it. Fortunately, the losses are small compared to some of the
investors out there.
The problems faced with Genneva Malaysia & its investors are as follows:
1. The company has been
operating for a such a long time in both Malaysia & Singapore. Of
course, when BNM raided Genneva , our Singapore cousin decided it is a
good time to follow suit. It was also on MAS (Monetary Authority of
Singapore) watchlist for quite some time.
2. Similar to Bestino
Golden House, Genneva Malaysia has been marketed to be a very legit
business model. Genneva Malaysia even had been touted to be Syariah
Compliant (see link here http://www.e-fatwa.gov.my/fatwa-kebangsaan/hukum-jual-beli-dan-pelaburan-emas-yang-dijalankan-oleh-syarikat-genneva-malaysia-s) and
approved by Bank Negara. This is something we now know to be inaccurate
because Bank Negara itself raided Genneva and stop them in their
tracks. Political parties should seriously consider hiring the marketing
team in the coming elections :D
3. With the fall of
Bestino Golden House, that has similar scheme with Genneva Malaysia,
there is still alot of people staying vested into the scheme. And there
is even a new batch of people buying into the scheme. I recently heard
that my friend's father has just vested in it. Hopefully not so deep in
already.
4. With the current
fiasco, even if Genneva Malaysia comes out unscathed aka BNM finds them
innocent (IMHO, highly unlikely), there will be a "bank run" from panicky investors that wants to withdraw their gold investment. It
is nearly impossible to repay everyone in such a short time, even big
"former" US banks (most went to instant bankruptcy) have this instant
liquidity problem.
Hence, there WILL be a
group of investors urging other investors to stay calm and remain
confident so as not to withdraw their investment. Their situation will
be like those stock investors who still foolishly holding to their limit
down stocks while other are selling like mad. Or even worst , they are
the ones selling/cashing it while asking other people not to sell. You
get what I mean?
5. From the new
articles, Facebook postings, Genneva Malaysia investor comes from a wide
range of society. Many of them invested their whole life savings into
the scheme.
6. There are other
similar gold scheme offered by other "GOLD" companies that is still
operating freely in the market. They even had the audacity to offer
"rescue packages" to the current stricken Genneva Malaysia investors.
Which boils down to the question that a lot of people have for those
brave ones that accept: "You want to KENA the 2nd time?"
"Trick me once, shame on you. Trick me twice, shame on me"
7. Gold companies like
Genneva Malaysia's cash holdings/assets are not protected by BNM
regulations if they decided to fold up. At least if our local banks
went bankrupt, (as seen on US banks), the BNM will protect your deposits
up to RM60,000 per account name.
In short, I am
lending my support to Genneva Malaysia's investor to get their hard
earned money back if they want to cash out. You can support them by
giving your moral support, comments on their Facebook page. (http://www.facebook.com/GennevaWorld).
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