Gold investment

View posted in my blog:
Hi Sir,
My parents recently invested in this company 'The Gold Label' who promises a return of 1% every month. It has since closed down and a portion of their money has been wiped out. They do have some 'gold bars' as collateral though, but the value of the gold is merely 70% of the actual price they paid for. What is your take regarding Gold instruments then? Is there any way to help regulate such schemes? It seems like a Ponzi scam to me after my parents told me, but it's too late now.

My comments
So sorry to learn that your parents lost money. It is quite sad that people are allowed to operate scheme that was designed to cheat the public. The various government agencies claim that this is not their responsibility. It seems that no agency is responsible to stop this type of fraud, even when it was brought up to their attention.

I have written about this type of fraud a few times in my blog. I also helped an investor to avoid exactly the same kind of investment. But there is only so much that I, as an individual, can do. The government has the responsibility and the resources, and they do not want to act. It is quite sad.