a Guaranteed 20% return investment was introduced earlier and it is indeed legitimate. But do you know it is like an offer " Give me $10 now, I will give you back $9 ". And of course it is Guaranteed !
Gold Price is about $17,000 at the time that offer was made. You could easily buy a 100g gold bullion at $18,000 at market rate.
A recap of the offer as below
Gold Price is about $17,000 at the time that offer was made. You could easily buy a 100g gold bullion at $18,000 at market rate.
A recap of the offer as below
SummaryMaximum Capital : $ 23,500
Total Return : $4,590
Rough Return : ~20%
As you can see, you are actually paying an extra of $5,500 at the beginning without realizing it. ( If you know the gold price, you would probably NOT buying it, would you ? )
23,500 - 18,000 = 5,500
Then through out the period, they will pay you back $4,590 and yet they can keep an extra profit of about $1,000
5,500 - 4,590 = 910
Of course it is Guaranteed ! Because you already pay them the money they will pay you back. All they need to do is to keep the extra money in a FD and they can easily honour the 'contract' they promise to pay you back.
Is that a scam ? Well, not really. Because they didn't really cheat or present any incorrect facts. They will even show you the gold price at that point of time. Gold selling price is always higher than the gold index price because traders need to pay other fees and make a profit.
The problem is you don't know how much other gold traders are selling gold bullions at.
So the only 'trick' for a person who 'invest' into such a scheme is his own 'ignorance'. There isn't really a crime nor fault of the business here. It always PAY to be IGNORANT. And this is the best real life lesson you can get. After all, you only pay $910 for such a lesson.
Then again, almost ALL of those who invested in such a scheme STILL DO NOT UNDERSTAND what they have got into. They will simply just get out of this scheme one day and get into another similar ones.
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