Dubai: An online gold store that is on the global watch list of investment regulators and which UAE authorities have warned residents about recently changed its name, Gulf News has learnt.
Emgoldex or Emirates Gold Exchange is allegedly an online gold store where clients can buy and sell gold bullion. It gives out “attractive credit bonuses” in a get-rich-quick scheme through client referrals or “invites” in a multi-level marketing programme.
Operators of Emgoldex in the UAE, who call themselves “Emgoldex clients”, said Emgoldex had changed its name to Global InterGold. The new online shop was allegedly officially launched in Russia on June 29.
“Please be informed that the name ‘Emgoldex’ (Emirates Gold Exchange) has been changed to ‘Global InterGold’. Renewed look but works the same online site we were used to [sic],” a public advisory by the ‘Admin’ posted on various Facebook accounts of Emgoldex clients read.
One team leader said the company name change and the new website look was made to “cater to the ever increasing global market” of Emgoldex.
Interestingly, the apparent name change took place following a Gulf News report in June exposing Emgoldex’s claims of being linked and registered with the UAE, which UAE authorities denied.
An official from the Commercial Compliance and Consumer Protection Sector in the Department of Economic Development Dubai earlier told Gulf News that no online store, especially those that sell or trade gold, can operate in Dubai without a licence. The penalty for doing so varies but starts from Dh5,000.
Gulf News also found out that Emgoldex is on the watch list of the International Organisation of Securities Commissions by virtue of a warning released by the Netherlands Authority for the Financial Markets. It is also on Sweden’s warning list of “firms you should avoid doing business with”. The Securities and Exchange Commission of the Philippines branded Emgoldex a scam last year.
When contacted by Gulf News, a spokesperson from Global InterGold denied the claims.
“Global InterGold is an independent company. It is not Emgoldex. The marketing company is launched from the UK, and the details are available to view on the Companies House register,” an emailed statement read.
The spokesperson clarified that their company is an online store that also offers a rewards programme “that is not a pyramid scheme”. He stressed that it is not a get-rich-quick programme, and “we do not offer returns on investments as we do not offer investments”.
“We are very alarmed at the media reports claiming we are some existing business with a new name and we thank you for the chance to inform you correctly,” the statement read.
However, the spokesperson said they “picked up many former Emglodex clients who want a stable, compliant platform”.
Upon close scrutiny, both websites of Emgoldex and Global InterGold offer similar programmes on getting credit bonuses on gold purchases.
When the Global InterGold website was launched late in June, Gulf News noted that the Emgoldex website deliberately removed its “Contact us” page that contained a trail of messages from alarmed Dubai-based clients following the Gulf News expose.
This may seem like a minor page error. But when Gulf News dialled the published phone number of Global InterGold, it found out that Global InterGold and Emgoldex shared the same London phone number. A quick directory search in the UK confirmed this.
This practice raises alarm bells to potential buyers, according to Pankaj Gupta, regional manager of SMC Comex, a registered gold trading company in Dubai.
“That strikes me as something scary. As an investor or buyer, I’ll be more scared in dealing with these people over the internet,” Gupta told Gulf News.
“My humble advice to people when they invest online is they have to first see who the regulator of the company is because this is important to use legal channels to recover their money in case [of fraud].”
Gulf News contacted Emgoldex and its two Dubai-based clients and team leaders but received no response at the time of going to press.
