Offered a gold investment deal, wanting opinions if possible

[Connor]

http://www.thegoldsafe.co.uk

 

I was online and came across a website (UK) offering a gold discount. I had a call off one of their employees, and what they are offering is either: 3.5% commission on the spot price if taking immediate delivery (can have 6 free months storage), or a forward contract with an 18% discount on the spot price. The minimum buy for the discount would be 5 toz (£6,000). There is a minimum holding period of 24 months before you can then take delivery off the product. It is then yours to do as you will. There's also no delivery, storage or insurance fees if you go for this option. Going off the upward trend of gold, it does look like a good chance to make a tidy profit in a couple of years, but then there are also a lot of dodgy people out there. 

What do people think?

Edited November 3, 2020 by Connor
Spelling

[TownCalledMalice]

My personal opinion for what it's worth - run!

Quick DuckDuck search shows which Company it is and they're selling paper that claims to be redeemable in two years for real stuff.

Could go into lengthy discussion about counter-party risk etc but if you were stood next to me in a pub I'd point you toward the nearest bullion dealer and safe installer.

I'm sure others have different opinions regarding these types of operations but for me, there's only ever one party that makes out on this and it's not the consumer.

Good luck. 

 

I've had a good read through their initial pitch and my opinion is the same.

I'd rather have a £7,500 hole in my bank account and 5 shiny yellow coins than a £6,000 hole and a piece of paper that says I can collect some shiny from a Company that may or may not exist in 2 years time!

Edited November 3, 2020 by TownCalledMalice
Additional comment

[Midasfrog]

Check out the deals that come up on the Forum , quite often gold under spot , gold at spot and gold at 2% over spot 👍

[Clockpuncher]

Wouldn’t touch it with a barge pole.

1) why would anybody offer a 3.5% discount on gold today vs spot price when it is so liquid and easy to shift anyway?

2) why would a producer sell you gold at an 18% discount to spot when gold futures are trading at a premium to current spot out to dec 2022?

Doesn't smell right - steer well clear!

 

[Connor]

Hi thanks for the replies. I lean towards what was already said above, the old saying if it's too good to be true..I just wanted to get everyone else's opinion, as I'm new to this and didn't want to make sure I was misjudging. I'm not in a position to do it regardless, I'd have to take out a loan and by the time I paid the interest I wouldn't be up either way 😂

[BackyardBullion]

This sounds like one of the many gold scams that are out there and I would run a mile if I were you. 

@dicker Put together a really good thread on spotting scams, worth a read here: 

 

[dicker]

Personally, I would not touch it.  I haven’t had time to look at who is offering this deal but there are too many red flags in the original post.  
 

A number of dealers offer services where they vault PM’s - I would think that would be a safer option if you don’t want to hold PM’s. 
 

Out of interest could you post the URL of the firm offering the deal?

All the best

Dicker

[Woodsy]

I've always been of the opinion, "if you don't hold it you don't own it" 👍

[Melon]

A wise old man once said... "use your melon!" 😄

I'd guess it's one of two things.

(1) A scam to get your money with no intention of ever giving you anything. 

(2) They intend to gamble peoples money on high risk investments for the next 2 years to try and make a big profit. If they manage to double up, they'll give people their effective return of 18% in 2 years and pocket the rest. If they don't manage to make a profit (more likely), they'll close down this pop-up company and you'll take 100% of the loss. 

[Connor]

Link here

1 hour ago, dicker said:

Personally, I would not touch it.  I haven’t had time to look at who is offering this deal but there are too many red flags in the original post.  
 

A number of dealers offer services where they vault PM’s - I would think that would be a safer option if you don’t want to hold PM’s. 
 

Out of interest could you post the URL of the firm offering the deal?

All the best

Dicker

 

I didn't post it because I wasn't sure if it would be an infringement of a rule on here didn't want to risk it. I'm reading through your thread @BackyardBullion posted just now. 

Edited November 3, 2020 by Connor

[motorbikez]

SCAM

[Abyss]

6 hours ago, Connor said:

I was online and came across a website (UK) offering a gold discount. I had a call off one of their employees, and what they are offering is either: 3.5% commission on the spot price if taking immediate delivery (can have 6 free months storage), or a forward contract with an 18% discount on the spot price. The minimum buy for the discount would be 5 toz (£6,000). There is a minimum holding period of 24 months before you can then take delivery off the product. It is then yours to do as you will. There's also no delivery, storage or insurance fees if you go for this option. Going off the upward trend of gold, it does look like a good chance to make a tidy profit in a couple of years, but then there are also a lot of dodgy people out there. 

What do people think?

Spill the beans what website was it? Members on the forum that can ascertain a lot of information about any website and ultimately determine the legitimacy. @Connor I also came across a gold website that seemed to good to be true and ask the Silver forum community for their input see the thread below.

As for buying a forward contract with 18% discount the futures symbol for gold is GC and you can inspect the price of all the futures Gold contract on trading view for free (screenshot below cut short the available contracts go all the way out to June 2026)

24 months from now it will be December 2022 contract GCZ2022 currently selling for premium $48 vs current contract GCZ2020 (Decembers 2020 Gold futures contract). If the futures paper market are selling a forward 24 month contract for a premium how can this dealer offer any discount?

Edited November 3, 2020 by Abyss
Changed to 24 month contract from six

[Connor]

2 hours ago, Abyss said:

Spill the beans what website was it? Members on the forum that can ascertain a lot of information about any website and ultimately determine the legitimacy. @Connor I also came across a gold website that seemed to good to be true and ask the Silver forum community for their input see the thread below.

As for buying a forward contract with 18% discount the futures symbol for gold is GC and you can inspect the price of all the futures Gold contract on trading view for free (screenshot below cut short the available contracts go all the way out to June 2026)

24 months from now it will be December 2022 contract GCZ2022 currently selling for premium $48 vs current contract GCZ2020 (Decembers 2020 Gold futures contract). If the futures paper market are selling a forward 24 month contract for a premium how can this dealer offer any discount?

@Abyss I provided a link in the last post I made above me? When I said I didn't post it I was referring to my opening post on this thread. Sorry for the confusion. I'll edit the thread.

[Foster88]

If it sounds too good to be true, it usually is.

[Abyss]

https://www.thegoldsafe.co.uk/
 

Strange but a dealer who is selling Gold no mention on the entire website what bullion is available, bars, coins or available mints. Gold unlike property efficient market and decent dealers buy back at or just below spot no need for individuals wish to liquidate to sell significantly below spot.

[CarlMac]

I have been looking into investing a little into gold, and came across this company.

I'm also a great believe in 'too good to be true'

It's now a THREE YEAR wait to have some actual bullion, but my red flags are coming via the weekly phone calls hassling me to buy ever since I showed a slight interest.

No other gold trader has ever seemed so desperate to get their hands on my money.

Warning bells ringing loudly. 

[BackyardBullion]

33 minutes ago, CarlMac said:

I have been looking into investing a little into gold, and came across this company.

I'm also a great believe in 'too good to be true'

It's now a THREE YEAR wait to have some actual bullion, but my red flags are coming via the weekly phone calls hassling me to buy ever since I showed a slight interest.

No other gold trader has ever seemed so desperate to get their hands on my money.

Warning bells ringing loudly. 

Yeah, run.

 

[dicker]

I have this outfit sending emails to my Scam Catcher email address. 

They send a lot of emails.  I think I might have written about them before.  I called them for a bit of a giggle 2 years ago - saying I had 100k or 200k to invest and the guy on the other end of the phone nearly had an orgasm. Not a good sign.  

[Rafal]

"if you don't hold it you don't own it"

it is very simple remember that and you gone be gold safe

[ShineyMagpie]

On 03/11/2020 at 18:53, Melon said:

They intend to gamble peoples money on high risk investments for the next 2 years to try and make a big profit. If they manage to double up, they'll give people their effective return of 18% in 2 years and pocket the rest. If they don't manage to make a profit (more likely), they'll close down this pop-up company and you'll take 100% of the loss

This was my thoughts exactly 

[dicker]

Or it is just a Ponzi.

We all know the margins are tight on gold, so where are they making money?

It didn’t make sense then and it doesn’t make sense now.   

[Bogart]

Sounds a tad dodgy to my mind. Looks easy to earn 15% by just buying one of their bonds, way too easy.

"We are firmly committed to the FCA´s principle of Treating Customers Fairly", committed to the principle means sod all.

"The United Kingdom Asset Company is not authorised by the Financial Conduct Authority to provide investment advice and our opinions should not be construed as financial advice"

Well says it all.

[dicker]

I can’t see how buying futures allows you to buy gold at “as much as a 30 percent” discount to spot.  

The mails I get (at least two a week) are “pump” type mails often quoting someone who used to work for a bank and saying gold will go to GBP4500 soon etc.

Sooo many red flags   

 

[Bogart]

Get that bloke around from the old TV prog Rogue Traders he will sort them.

[dicker]

The one that wasn’t found guilty of benefits fraud?

The BBC at its best