When the news of Bank Negara Malaysia raided Genneva Gold surfaced in the newspapers, I expected the investors to swarm Genneva 's office. They did. But to my surprise, they were not hostile against the company but the consultants and investors united to show support for the company and demanded BNM to unfreeze the investors' gold assets. Facebook page was even set-up by the Genneva's supporters.
Did the investors ask, "why don't the banks or funds like EPF, PNB which are run by the professionals and have better access to investment opportunities invest in Genneva gold? Wouldn't the bankers be happier to receive 24-36% of return per annum than the mid single digit interest rate from lending out the money for housing loans, and yet when the investment capital is so called guaranteed? Furthermore, housing loans may turn into non-performing loan. Wouldn't EPF and PNB love this kind of return? What's more without having the trouble of scouting for investment opportunities and getting experts to manage the investments?
Wouldn't Genneva be happier to manage one single big investor instead of handling thousands of retail investors?
It is obvious, isn't it?