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Investors to be aware of 'risky' gold buyback schemes

Published on Sep 27, 2012 6:00 AM
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?

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