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I did say chop my head off to rebut an investor in FMT if all gold bar investors received gold bars

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This is exactly the trick used by Genneva by over selling gold bars to many investors to maximize returns.

You may not have realized that all commercial banks are working on the same principle through paper money creation.

Paper money creation is every one ringgit deposits in the bank is loaned out to several borrowers simultaneously. Any bank will bankrupt like Genneva if all depositors withdraw their money from the bank in the same time.

A case study, your RM 1 deposit earns 3 sen in a year, but the bank will collect 21 sen (at lower end) from seven borrowers. The margin is 18 sen sen or 600% gross margin under the ideal case.

The difference with paper gold bar trading is licensed banking business is guaranteed by the government and money creation ratio is also controlled by the central bank.

All well-managed banks can reap huge profits with paper money creation alone.

Gold investment probe: Many paid but did not get their gold

KUALA LUMPUR: Seized records have revealed that many investors who had paid had yet to receive any delivery of gold, prior to the joint raids […]