Skip to main content

Cheated or Own Ignorance ?

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

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.


Labels:

Comments

Post a Comment

Popular posts from this blog

What is really important in Personal Finance Planning ?

There is a great video I have seen in LCF  where he talks about Insurance Investment Retirement Tax Estate Planning Although I may not agree to all points but it is actually quite good and all points presented professionally. Some of my pondering points 5-6% investment cost is NOT LOW Actually whether an investment cost is low or not is always relative.  For example, if you are paying 20-30% to others to manage your portfolio then it is lower to find one that is 5-6%.  Likewise, paying 1-2% fee when you manage your own investment is common.   So it is really a matter of your money vs your time.  If you pay more fee, you would expect better services just like any other things in life. Thousands of saving on tax can be compounded to millions While its true you could save on tax but usually its not in a huge magnitude.  To save thousands in tax, you probably have a certain amount of much bigger income to start with.   Its more toward FREE money vs ignora...
Post a Comment
Read more

Resep Membuat Arem Arem Isi Ayam Wortel Special

Arem Arem Isi Ayam Wortel - Arem-arem merupakan makanan serupa kue lemper yang digulung dengan daun pisang lalu diberi isi sambal goreng, sosis, mie goreng, ayam wortel dan sambal goreng. Untuk daun pisang, sebaiknya bunda memakai daun pisang kluthuk supaya hasil bungkusannya bagus saat dikukus. Dan sebelum daun pisang diberi nasi dan isi, hendaknya bunda menjemur daun pisang terlebih dahulu sekitar lima sampai sepuluh menit supaya daun pisang tidak robek saat diberi nasi dan isiannya.  Jika melihat sekilas, arem arem dengan lontong pasti akan terlihat sama karena sama sama dibungkus dengan daun pisang lalu di kukus sampai matang. Namun jika kita melihatnya dengan lebih teliti lagi maka akan terlihat jelas perbedaan arem-arem dengan lontong. Kalau arem-arem umumnya sama seperti lontong, hanya saja arem-arem didalam nasi terdapat isian daging cincang, atau sayuran. Cara membuat arem-arem dapat dibilang mudah dan bahan-bahannya juga terjangkau ditemukan seperti wortel dag...
Post a Comment
Read more

21st century trick ...

Once upon a time, there was a gasoline called 97. The cost of this item was $1.80. One day, the governing body wanted to increase the price to $2.10. However, the governing body knows that if they simply increase price, that will affect their popularity. Which in turn affect their eligibility to continue to be governing body in next election. Hence they come up with a perfect idea. They first introduce another brand called 95. Actually this is a much lower quality product than 97. In short, 97 simply means there is at least 97% of pure petrol in the gasoline. On the other hand, 95 only has 95% purity. However, they push out 95 as if it is a better quality product. They even add some 'addictive' into 95 to justify their claim its a better product. It was presented in a way that 95 will replace 97, and stay at the same price at $1.80 More than 90% of the consumer fall for it. Hence the transition of 97 to 95 went through smoothly. Majority of the consumers pay the ...
Post a Comment
Read more