Friday, January 10, 2014

The musical chairs of investment

I saw this comment in one of my blog post recently. It goes like this


"Bullion Invest - Invest $500 Return $350 daily for 50 days

Program A: You will receive Receive 70% daily for 50 days for every deposit made to the Standard Program. You will get your principal back immediately after your investment term is expired.. Minimum spend is US$350

Program B Receive 200% daily for 20 days for every deposit made to the Premium Program. You will get your principal back immediately after your investment term is expired.. Minimum spend is US$3500

Program C: Receive 1000% daily for 5 days for every deposit made to the VIP Program. You will get your principal back immediately after your investment term is expired.. Minimum spend is US$20000 and maximum is US$150000 .

Invest Here
http://www.bullioninvest.net

Investment Insurance
http://www.payinghyiponline.com/bullioninvest.html"


Wow, here's the % returns pa (annualized) for the different programs:

Program A: 255.5% pa
Program B: 730% pa
Program C: 3,650% pa

This means that if you put $100 in, you'll get back $255.50, $730 and $3,650 for programs A, B and C respectively!


This is exactly what I said to my parents before they part with their money LOL


Why would anymore not want to jump in? Maybe you need to ask a few pertinent questions before jumping in:


1. What sort of thing did they invest in order to give you such a super incredible yields?

2. Is this sustainable, given that for every dollar anyone puts in, they would have to generate at least 200% for each dollar, and not to mention keeping a part of it to maintain their business and have a profit?

3. Can the site be trusted, given that the links provided didn't work and it's posted by someone named 'anonymous'?

4. Can you trust what they promise to give you, given that the best money managers yield around 30% pa max, and this company promised to give you something like 8 times better than the best money managers?


But I think I'm barking up the wrong tree. People who choose to invest in such schemes can broadly be divided into two groups : one who don't know what he is getting into and one who knows what he is getting into. Someone mentioned that people who choose to put their money into such schemes knew what they are getting into. It's clearly a ponzi scheme - where the company take in fresh funds to pay off the promises of previous funds. They knew that it's a ponzi scheme and yet they choose to partake in it.

Why?

It's because they are confident that they can get out of it before others do. Well, just remember to get out before the music stops, or you'll find yourself stranded like all the rest who didn't even hear the music from the start.

4 comments :

B said...

Hi LP

Even if it is a ponzi scheme, is that kind of returns even possible?

I mean thats a lot more returns than the past ponzi scheme I've ever seen.

la papillion said...

Hi B,

I believe so. The pyramid had to be sufficiently 'well-funded' by others, haha :)

Had a friend who knew another who invested in such a thing, knowing full well what he is getting into. The difference is that he knew someone inside, so I suppose he think he has privy information to what is going on well before others do. An edge is such a scheme makes all the difference I suppose.

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