investment in vgmc.com --halal/ haram

[azaz]

asalam ale kum

i had invested in 1 gold mining company who produce gold.
they give cps(convertible preferred share) share with 1.35$/cps each. if we buy 10000 cps they give us 1 oz of gold as dividend monthly.the gold we can sell or we can keep it,its upto us. this scheme is only till 2015, whenthey will launch as ipo in share market.
the price of cps also increased regurlaly ,from 0.80$ in jan2010 to 1.35$ in feb2012.
website are [b]www.vgmc.com[/b].
plsease go through it and guide us ,regarding the investment is halal or haram.
not only me (working in saudi as doctor) but i know there are many muslim in indonesi, malaysia, singapor, saudi,dubai,etc are also invested in this comapny.
pls help us all with good opinion
may allah shows us true path.

waiting for the reply

[Amatullah]

Assalamu aalikom


This doesn’t seem right.

You pay 13,500 $ and you get every month 1oz which is by today’s prices is 1733 $. This means that this company is giving you about 13% a month, or 154% a year. This will continue for 3 years!!!

Giving a fixed amount of money every month as profit is not permissible.

The amount of profit they are making is very suspicious as I don’t know anything that generates such profit except drugs.

It appears to me that this is a scheme where they will gather people’s money on a wide scale, give the people 60 or 70% of what they have initially invested and then run away with the rest. This might take some time. They will probably give the initial investors profits from the new comers so it would be like apyramid scheme where the people in the top get profit from those in the bottom.

Assim L. Alhakeem