Recently, the Straits Times published an article stating that 180 investors had inked a petition urging government to take action against Gold Guarantee (TGG). Apparently these investors turned up at Hong Lim Park and signed the petition urging the authorities to expedite investigations into the gold buyback firm. One of the victims even claimed his family lost almost close to one million dollars on TGG. It seems that a lot of Singaporeans had lost huge amount of money after investing in gold buy-back schemes offered by TGG.
Greed or Stupidity?
Readers may remember that last year, I wrote an article “The wrong way to invest” on The Genneva Gold Trading, which also offered similar gold buyback scheme to investors at ridiculous yield rates. Many investors also lost huge sum of money in that fiasco. Prior to that, there was the Minibond case which also involved multi-million dollars investment losses. Sometimes I wondered why some Singaporeans are so stupid to fall for such silly schemes.
Prevention is better than cure
The best way to prevent yourself from being financially cheated is to educate yourself constantly. Always keep in mind that investing is a process and not an end in itself. Investors need to update themselves on the latest developments in the financial markets, local and internationally. One of the best ways is to connect with mainstream media and the Internet.
I received several comments from my readers for my article last year. Some of the readers emailed me and agreed that these greedy investors deserved to lose their monies. Some readers commented in my blog that I was too callous and blasted me for gloating at their misfortunes. I think each of us is entitled to our own views, so I did not attempt to reply or clarify my stand. Because by doing so, it will be against my policy of encouraging feedback to my blog. Ultimately, my aim is to educate Singaporeans on financial literacy and not to antagonize the local community.
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