Gold Trading and Investment

How To Spot A Scam

Barely 3 days after I posted the blog Do You Want To Get Rich Quick?, the latest Get-Rich-Quick scheme appears on my Facebook timeline.

A few years ago, a friend told me about this “Gold Investment” company which guarantees a 30% p.a. return. Straightaway, I said, it’s a scam.

As expected, I got the defensive response.

I discovered quite a few friends were into this “investment scheme”. One friend even told me that it has to be legitimate because he was introduced by a university professor who sits on the Board of the company. Surely, a university professor can be trusted?

I have learnt that when it comes to money, nobody can be trusted! Not even your mother!

Fast forward a few years and the company gets shut down by Bank Negara and many who donated their life savings are now still suffering.

Well, today,  I discovered a new “gold trading investment” opportunity.

Not offering 30% guaranteed return.

Wait for it.

Guaranteeing 120% p.a. return. Wow!

Not only that, you get 10% for introducing new suckers, I mean, investors. And not only that, you get additional bonuses based on the balancing of a binary MLM structure 10 levels deep.

Wow! So many bonuses!!!!! Quick invest!

Listen. One of the easiest ways to spot a scam is this rule:

If it’s too good to be true, it’s too good to be true!

As a general rule, run away from anybody who guarantees you 30% or more consistent return on an investment.

Nobody on planet earth can give that kind of guarantee.

Even the richest, most respected, most revered investor, Warren Buffet, cannot give you that kind of guarantee.

Do you know that in the past 30 years, Warren Buffet has only achieved an 18% annualized return on his investments? (source)

Warren Buffet? One of the richest men in the world. Only 18%?

Someone should ask him to put his money into this new gold investment scheme.

If it’s too good to be true, it’s too good to be true!

Remember this.

Nobody can stop you from investing into a scam. But if you introduce others to do so, you are responsible.

Don’t be a fool.

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