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.

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20% Guaranteed Return through GOLD ?

Have you ever heard of an investment with Guaranteed Return 20% ?  Well, this particular one is from The Gold Guaranteed . . . what do you think the catch is ?

1. You Buy Bullion Gold from TGG ( The Gold Guaranteed )
2. You keep the gold
3. You sign a 3-months-contract with TGG
4. TGG pays you 1.7% every month
5. At the end of 3 months, you can choose to 
1. renew the contract for another 3 months or
2. sell the gold back to TGG how much you have paid for ( ie. your Capital ) 

• To renew the contract, you have to pay the additional cost if the gold price has gone up
• Like wise if the gold price has gone down, you get paid extra and also gets to renew the contract

For example, at end of August . . .

1. You pay $22,500 for a 100g bullion and signed the 2 pages contract
2. You get paid $382.50 monthly for the next 3 months ( 22,500 x 1.7% )
3. 3 months later, 100g gold price goes up to $23,500.
4. You paid an extra $1,000 and renew the contract
5. You get paid $399.50 monthly for the next 3 months ( 23,500 x 1.7% )
6. another 3 months later, 100g gold price goes down to $21,500.
7. You get paid $2,000 and renew the contract
8. You get paid $365.50 monthly for the next 3 months ( 21,500 x 1.7% )
9. another 3 months later, 100g gold price goes back to $22,500.
10. You paid $1,000 and renew the contract
11. You get paid $382.50 monthly for the next 3 months ( 22,500 x 1.7% )
12. when the contract ends, you sell it to TGG and get back $22,500

Month	paid	get back
1	$22,500	$383
2		$383
3		$383
4	$1,000	$400
5		$400
6		$400
7	-$2,000	$366
8		$366
9		$366
10	$1,000	$383
11		$383
12		$383
		$4,590

Summary

Maximum Capital : $ 23,500

Total Return : $4,590

Rough Return : ~20%

All this happens while you are keeping your own bullion gold with you until you sell it back to TGG.

How does this sound to you ?  What could be the catch if any at all ?

What other strategies you may apply assuming this is a genuine deal ?

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21st century Economy Politic Quadrant

The Economy-Political Quadrant may seems like telling where to keep or invest your money despite good or bad time.

It indeed works very well during 20th century. Unfortunately comes to 21st century, not only has the year changed, personal finance arena has changed drastically as well.

Gold has been speculated so much that it MAY no longer be the standard of money.

There used to be only 'property' in the city. Now there are satellite towns, suburbs ... agriculture lands and even dust bins ( recycle ) have become valuable estates too. While property remains the right category to invest into whenever economy is booming, but predict the right future seems like tougher than buying lottery.

Government bonds used to be de-Facto action when a country is stable. But in today's world, a country is as smart as a taicon's finance. One day they are the LARGEST, the next day they are GONE.

Stock market used to be the back bone of a country's economy. However, the market of derivatives has become so HUGE that the REAL and PHYSICAL is NO LONGER more real than VIRTUAL

So in 21st century, the element of Stock-Property-Funds-Gold is really questionable. However, one fundamental that doesn't change is that

you will have to identify what to do at what time that is BEST for YOU !

Hope you will find your own very best Economy-Political Quadrant soon !

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Economy Politic Finance Quadrant

There are 2 BIG main external factors affecting our investment decisions

• Economy
• Politic

When the time is really bad (economy downturn and politically unstable), its best to park your money under something that is really stable, ie Gold. Which is by definition usable anywhere you go in anytime.

When its good time, invest direct to the stock market would yield very good return.

When the economy is not so good in a strong country, the government bonds or related money market would be able to yield higher return than just gold.

However, the most dispute solution in good economy unstable country is investment in property. This is mainly due to easier rental and higher chance of capital gain.

By simply moving money around depends on the political and economy situation, one was able to achieve more than 12% compound return for the past 20 years. That is equivalent to a 10X return.

But by no mean this is easily done. Some of the concerns include;

• how would one know exactly when economy/politic turns good/bad ?
• is Gold the ONLY option ?
• property may not easily liquidated
• how to choose which property or stock market ?

. . . which can be explored further.

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