Gold investment scheme

Hi Mr. Tan,
Recently there is this gold investment scheme by 2 companies called X Gold and Gold label. They claim that it is a pretty low risk investment with 9% guranteed return after 6 mths which will mean a return of 18% annually. What is your opinion on this? Is it too good to be true?

REPLY
Of course it is too good to be true. Never invest in promises that you do not understand.

Many investors were offered a return of 12.5% after 6 months on a land banking product and on an industrial chemical product. When the investment matured, they did not get back their principal or the interest. The promoter of the product gave all kinds of excuses - citing the financial crisis. It is easy for you to hand over your money, but difficult to get it back.

There is a chapter in my book, Practical Guide on Financial Planning, about unregulated products that should be avoided. You can buy the book ($12) here.