Investors to be aware of 'risky' gold buyback schemes

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?