Investors to be aware of 'risky' gold buyback schemes
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Questions potential gold buyback investors should ask are how the returns are generated, and whether the product issuers are regulated, said MoneySense, urging investors to avoid unregulated operators. -- PHOTO: LIM YAOHUI FOR THE STRAITS TIMES
Investors should be aware that some gold buyback schemes are highly risky, and not as glittering as they seem.
The warning came from MoneySense, a financial education service, which noted that some schemes offer returns of 18 per cent to 30 per cent a year.
"The returns and promises advertised are enticing, but investors need to exercise caution," it said. It urged potential investors to ask two questions:
How are the returns generated? Are the product issuers regulated?
