The CEO of The Gold Guarantee, Mr. Lee Song Teck (age 34), went missing along with its investor’s money. Before TGG’s CEO when missing he had asked investors to pay a S$2,000 deposit for a kilo of gold when signs that his company is running out of cash. Earlier on 09th January, it was rumored that TCC has stop payment of 1.7% monthly interest to their investment.Mr Lee also operated many other companies including Asia Pacific Bullion which has a similar business as The Gold Guarantee. Some consultants (agents) had managed to track down Lee Song Teck in Malaysia on 12th January and Mr Lee has asked them to give him more time to “settle things”. Another group of agent met Mr Lee’s mother at his corner terrace house in Hougang, but she said she did not know of his whereabouts.
Recently Lee was spotted driving along Orchard Road in his brand new million dollar Bentley Continental Supersports.
The Gold Guarantee, an outfit founded by Lee with the headquarter located in Boat Quay, claims that it will buy back gold at a premium to the original sale price, becoming the latest to offer such a product. The Gold Guarantee’s gold buyback schemes: They offer to will sell investment-grade gold to you today and give you the option to sell it back to them at a premium after a fixed period of time. If gold prices have gone up significantly, you can potentially sell on the open market instead and make an even better return.
The typical marketing language can lead customers into thinking they are getting a cheap, low-risk deal. In fact, customers may be buying overpriced gold and a promise whose real strength is not known.
In October 2012, The Gold Guarantee offered “rescue plans” for investors affected by Genneva Gold to buy over they distressed investment (i.e., Genneva gold bar at a discount).
It has been said that investors who took physical possession of their gold has less to worry about compared to those who left it with The Gold Guarantee (TGG) for earn higher “interest” as they can still sell it to pawnshops or banks. However many with the gold in hand had difficulties in offloading the precious metal as pawnshops such as Maxi-Cash and ValueMax are refusing to buy any gold associated with the embattled gold trading firm. They fear that the gold bars may be seized by the Commercial Affairs Department (CAD) during investigations.
The Gold Guarantee is in the Monetary Authority of Singapore’s Investor Alert list, which tells investors to be on guard against these entities. Other gold companies such as Genneva Gold and Asia Pacific Bullion are also on the list.