The New Zealand Herald reports this morning that a bullion dealer and trading company in New Zealand has gone bust, with investor funds lost:
A family with more than $340,000 invested with a gold bullion trader say they have been told by its owner they won't be getting it back.
The Serious Fraud Office received two calls about Bullion Buyer website yesterday and SFO chief executive Adam Feeley said the complaints were "being looked into as a matter of priority".
The bullion investment company has an office in the Vero building in downtown Auckland and is run by Grace Holdings NZ Ltd, whose sole director is Robert Kairua. NZ Herald
The company "Bullion Buyer" (aka Grace Holdings NZ Ltd) already hit the news last September when it was identified that their head trader and indirect owner lost investor money in a similar Gold trading related incident:
His initial impression was that Geldman was "a lovely guy", and Fuller agreed to give him more than US$180,000. But only a short time later, Geldman called him to say there had been a problem with the investment, and Fuller was likely to make a significant loss. "He said: 'Look, the wheels have fallen off things' or something to that effect.
He said the company we were invested through had over-leveraged and the authorities had struck them off the list of certified operators because they were no longer solvent." NZ Herald
Although given that one of the victims in todays article has been waiting months for his Silver bullion to arrive it seems possible the two incidents were related and that Geldman may have been responsible for the demise of Bullion Buyer.
The story should act as a timely reminder of the dangers that lurk in the Gold and Silver investment (and bullion buying) market. Don't put all your eggs in the one basket.