Yet another gold buyback firm has collapsed. Channel 8 news reported on the 09th April 2013 that around 400 clients of SG Gold are affected after the firm closed down last month. SG Gold cited the slump in gold prices as the reason for closing down.

SG Gold unsuccessfully tried to find a buyer for the gold buyback business in December last year.

The gold buyback firm attracted clients from another gold buyback firm Genneva last year. Genneva is currently under investigation by CAD.

SG Gold the offered to pay former Genneva customers 2% a month for 6 months before buying over the gold. The catch is that the customer must pay $1,800 per 100 gram of gold upfront.

The police declined to comment if SG Gold is currently under investigation.