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Family loses $340,000 with gold bullion trader

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Thu, 09 Feb 2012 10:06a.m.

A Christchurch family has lost over $340,000 with a gold bullion trader

A Christchurch family has lost over $340,000 with a gold bullion trader

A family has lost over $340,000 after they invested with a gold bullion trader, reports the New Zealand Herald.

The Christchurch family invested the money in the Bullion Buyer website and has been told by the owner that they will not be getting the money back.

The family invested US$285,000 ($341,700) in the firm, buying gold and the borrowing against that investment in order to buy more gold, however it never arrived and the family has been told they will not be getting their money back.

Bullion Buyers is run by Grace Holdings NZ Ltd and has an office in the Veros building in downtown Auckland.

The company’s sole director, Robert Kairua, has reportedly blamed the loss on the trade on Elijah Geldman, who resigned from the company last year after it was revealed he had previously been charged with fraud by US federal authorities.

The Serious Fraud Office is now looking into the matter.

Have you had any experiences with Bullion Buyer? If so, email noles@tv3.co.nz

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Comments

11 Feb 2012 08:42p.m.

gavin wrote:

don't people ever learn? these gold bullion companies always pop up when gold is on a roll and disappear just as quickly when the price trend is downward. I looked at them about 9 months back and decided it was too risky to put my trust in them. I love the way they always blame someone else (in this case geldman)

09 Feb 2012 09:00p.m.

Huitzilopoctli wrote:

Unfortunately in times that we are in, even a normal or low risk deal with gold can daunting. 36,000 professional gold and commodity traders with MF Global lost out on sums approximating 1.2 billion from Oct 31, 2011 (http://www.huffingtonpost.com/2012/01/30/missing-mf-global-customer-funds_n_1241639.html). It was the 9th largest bankruptcy worldwide, it was a professional trade establishment backed up by the Chicago Mercantile Exchange (who acted as guarantor up to 100 Billion in reserves), yet according to reports the 1.2 billion vapourised. A number of high flying professional traders were caught in this, and a number of high profile personnel and companies were involved (Jon Corzine, JP Morgan (London), being some). The question is how does 1.2 billion in commodities and customer segregated accounts which weren't up for trade disappear? And how were professional traders duped?

09 Feb 2012 12:54p.m.

Erm... wrote:

If an investment seems to good to be true, then it probably is.