
Originally Posted by
gabzreal
ANOTHER INSIGHT REGARDING ALL THESE SCAMS..
(Emgoldex/Gold Intergold, Gold Extreme, Success 200, etc)
Let us suppose the banks follow this exit/table bandwagon, because as the numerous proponents say, their financial mechanism is legal. So, granting the banks follow suit, what do you think would be the scenario? Let us speculate.
Granting BDO comes out with an ad:
Deposit Php 3,000, and your money becomes Php 30,000! Nice right?
Now, of course for this to be legal, it must adhere to a technical requirement: the existence of product/s. So BDO decides to give products to its participant, mainly an executive planner with the bank's brand/logo, an executive pen, and an umbrella. There, there, now, it is technically legal.
Now since BDO is a prestigious bank, within the first day of advertising, 10,000 people joined the program. This means an instantaneous Php 30,000,000 pay in. The question now is, how will the bank raise Php 300,000,000 (well, to be exact, 270,000,000) for the pay out, not to mention in so short a time.
So where will the bank park the Php 30M for it to have a gain of Php 300M?
Bonds and debt securities? Too long term.3-10 years.
Money Market? Shorter than bond, but still, a year of maturity.
Equity/stock? The most likely kind of fund where you can gain (or lose) overnight. But a 900-1000% growth of stock? Impossible.
Forex? Remember a Russian investor invested 9B in Euro Currency and earned 1B. But that is still just a 10-12percent growth.
Hedge Funds and Speculative Trading? Even, with the high yield and high risk nature, these funds do not hit a 1000% growth.
How about investing in a business platform? A possible 100% yes.Even 200%. But 1000%? In a short time? No can do.
Where then can the bank invest the Php 30M?
The answer? NO WHERE.
Even with their catch phrase WE FIND WAYS, there is no way for a 1000% percent yield. No way for a bank to turn a Php 3,000 into a Php 30,000.
How then does a company like GOLD INTERGOLD, SUCCESS200, GOLD EXTREME, etc etc do it? I mean, with all the financial wizards, consultants, and specialists in banks, financial institutions, mutual fund companies, investment houses, and investment companies, how can these known financial institutions take a back seat to these EXIT/TABLE whatever, companies?
Well, the answer is simple.
These companies do not invest the pay ins in any money instruments.
They use your pay-in in paying your leaders. And they use the pay ins of your recruits to pay you. And so on and so forth.
What do you call this?
It is called PYRAMIDING. PONZI SCHEME.
And this is ILLEGAL, IMMORAL, and UNETHICAL, even if your company is not listed in the SEC's watch list.
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So,
To all those pondering on joining these schemes: DON'T. Better an honest gain than a tainted yield.
To all those promoting these schemes: Why don't you call your company and ask for a logical explanation. If indeed they use pay ins for the pay out, then the truth shall set you free, but first it will hurt like hell. Php 1,800 does not grow into Php 10,000 like money grows on a tree.
Remember:
IF IT DEFIES COMMON SENSE, DENY THE NON-SENSE!
To all those with extra to invest: I would suggest you park your money in known institutions such as PRULIFE, SUNLIFE, and other legal financial institutions and/or banks, or even real estate. Look for a financial/real estatel consultant, and ask advice from one who studied about money management, and even took licensure exams. Not from an uninitiated recruiter who knows nothing about financial management. Better a slower and lower yield where you keep your soul intact. Than one, who, upon their company's closure, would have to hide their tail between their legs.