Passive Income. Alibaba. CPF. Bitcoin. Semi-retirement.

Time for another update.

First, on the personal front, I have been spending more time on other stuff in life as I have been feeling that too much time spent on social media is probably unhealthy for me unless I am doing it for a living, of course.

If it was a livelihood, then, rain or shine, I would have no choice but to do it, of course.

In my last YouTube video in the middle of June, I said I was taking the rest of June off from social media and I feel it has done me a ton of good.

I have spent so much of my time on social media since 2009 and although I have taken breaks from time to time, I always came back.

I think it is time I take a very long break or even retire from social media as it feels like an unhealthy addiction.

I know it is an unhealthy addiction because I could feel it feeding my ego and I am old enough to know I shouldn't like it.

Like I said, I am not doing this for a living and I do have a choice. 

I should choose better mental health.

Staying away from social media in the last two weeks has helped to clear my mind and I know what to do now.

More details on this at the end of the blog.

Now, for an update on money matters.

For readers who have been following my blog for many years, this year thus far probably looks very atypical as I not only invested in Alibaba, I increased my investment in Alibaba substantially.

Alibaba is now approximately 6.5% of my portfolio.

Strictly speaking, it didn't start this year as my first purchase was in December last year.

Anyway, for someone who is known for investing for income, Alibaba is an odd choice since its dividend yield is around 1% only.

However, if you are following me in my YouTube channel where I have been sharing my thoughts more regularly, you would know why.

I already have a relatively large portfolio of income producing stocks.

The passive income generated exceeds what I need in life by a big margin.

There is no urgency to further grow my exposure to these stocks, logically.

I also made videos about money in my CPF account and how that is going to generate passive income for me soon.

Although we earn interest income in our CPF account, realistically, we cannot count that as passive income until we turn 55 as that is when we can withdraw the interest earned from our OA annually.

I am going for the Enhanced Retirement Sum which would generate $3,400 in monthly income for me when I turn 65.

And the rest of the money in my CPF OA would generate about $20,000 annually in interest income which I can withdraw from age 55.

I turn 55 next year.

So, making further investments for income at this stage is really not a priority for me.

With policy risk in China largely gone, investing in an undervalued and growing AI and cloud computing infrastructure company like Alibaba is attractive to me.

Of course, most of Alibaba's business is still in e-commerce but that is what generates the cash for them to invest in the fast growing cloud computing infrastructure business.

I have talked about this many times in my YouTube channel.

So, I won't rehash.

The next thing I am going to talk to myself about might shock some readers but for those with better memory, it would not be all that shocking.

I have been buying more bitcoin.

About 3 years ago, I said that I changed my mind and bought bitcoin.

I was convinced that bitcoin was digital gold after doing some research.

Just like physical gold and silver, I think having some bitcoin as insurance against flawed fiat currencies is prudent.

It is a good insurance against monetary debasement as the world print more of fiat currencies non stop.

Bitcoin is a harder money than even gold and silver.

Hard as in hard to produce versus easy money like fiat money which can be printed infinitely.

Just like Alibaba, I have shared my thoughts on bitcoin in my YouTube channel regularly.

So, if you are interested, please search "bitcoin" in my YouTube channel and you will see those videos.

In one of the videos, I said I have become more comfortable with bitcoin after doing more research and decided to increase my exposure to it.

In that video, I said I would like to increase my exposure to 5%.

However, I have since then decided it should be 10% to 15% in order for it to be adequate.

Why?

Since I look at bitcoin as insurance, the way I decided that I was "under-insured" was to see how much coverage I had in traditional insurance.

In traditional insurance, I had to die for the benefits to be paid out to my family and the amount far exceeded my exposure to bitcoin.

So, I used that as a yardstick to accumulate more bitcoin and one advantage of bitcoin as insurance is that I don't have to die to enjoy the benefits.

Not something which matters too much to me but it is a plus.

I am very far from my newly set goal.

Since my last video on bitcoin, therefore, there has been a stronger will to accumulate more bitcoin.

Ever since Russia invaded Ukraine, we have seen more violence erupting in the world.

The Israel and Iran situation was the last straw for me and I bought more bitcoin when the price dipped below US$100K per coin like I said I would in one of my videos.

Military conflicts could become international, if not more commonplace.

Economic crisis could become global.

Ray Dalio said recently that we could be looking at something worse than a global recession and more intelligent people are thinking that way.

I think that it isn't as risky investing in Alibaba and holding bitcoin today.

Policy is very supportive now of tech companies in China.

Bitcoin is the hardest form of money known to mankind and it is, in many ways, better than gold and silver.

It is harder, cheaper to transfer and more portable.

To me, there is no risk in owning some bitcoin but it could be risky not to own it if we care about the value of our money and fighting constant inflation.

To fund my purchases of Alibaba shares and bitcoin, I have been dismantling my T-bill ladder which I have talked about frequently in the last two years.

Yes, that's my war chest.

This way gives me the funds to accumulate bitcoin every two weeks as the ladder matures but it will only last for a total of 6 months.

Lacking an earned income, I would have to rely on my passive income to further grow my exposure to bitcoin.

That would be a very gradual process as I consume a large part of my passive income.

What to do?

If bitcoin's price should decline significantly for some reason, I might sell some of my loss making or underperforming investments to buy more of it to hit my new target of 15%.

These are investments which I have not sold even though they have underperformed as they look undervalued to me at the prevailing market prices.

However, like I have said many times before, undervalued can stay undervalued for a long time and redeploying some of the resources to assets I am more concerned with currently is not a bad idea to me.

The investments I have shortlisted at the moment are IREIT Global, CLCT and Wilmar International.

Of course, if you have been following me for a long time, you would know that I have not found REITs attractive in recent years and much preferred putting more money to work by investing in our banks.

So, when I think about raising cash, it shouldn't be surprising that some REITs in my portfolio are considered likely candidates.

As for Wilmar International, the recent graft case in Indonesia which caused it to give up some 60% of its annual profit is, hopefully, a one-off event which means a correspondingly lower dividend for one year.

It isn't a structural issue and it doesn't change the view that Wilmar International remains deeply undervalued but it has been undervalued for many years and could stay undervalued for many more.

So, I decided that it is also a good candidate for a partial divestment in case I need more cash.

A side benefit in doing so is that I wouldn't have as many businesses to monitor and this frees up time for me.

However, it is not a given that I would do it.

Like I have always said, we must all have a plan, our own plan.

Over time, we could make changes but we should not stray too far from the original plan, especially if it is a good one which means not touching my rather substantial investments in DBS, OCBC and UOB, for the most part.

Let our winners run is the idea.

I have my own plan which I make changes to whenever necessary, eavesdropping on myself and eating my own pudding here.

Investing for income has worked well for me over the years and it is likely to continue chugging along.

Like I said in an interview with The Fifth Person, there are always big investment themes and my portfolio has morphed over the years.

I feel that the future is going to be very different and investing for income alone might be insufficient for regular folks.

If I were to go into hibernation today and wake up 5 to 10 years later, the changes I see in the world might shock me.

I am taking steps to help ensure that the shock would not be too nasty for me in such a hypothetical situation.

AI is part of the future and will bring more changes, both good and bad.

I suspect that many people will lose their jobs within the next decade or two, both white and blue collar, or have trouble finding jobs as AI and advanced robotics take over.

They need insurance as unemployment is likely to become a bigger problem.

Some businesses will struggle and some will fail in the face of such changes.

They need insurance as the business environment becomes even more competitive.

Then, there is the cost of living crisis which will only get worse especially for the common people as inflation is not going away.

Very flawed fiat currencies devalues our time and energy which means for most people, they would have to work much harder for money and might not be better for it as everything becomes much more expensive.

Job insecurity plus cost of living crisis.

It is a double whammy.

The world has not been peaceful for some time now and it is likely to be even less peaceful in future.

It would be a mistake to think that Singapore can stay insulated.

We need insurance.

Bitcoin is a good insurance in such difficult times.

It is pretty much future proof as it is the future of money.

What about the insane price volatility of bitcoin?

Like I said in one of my videos on bitcoin, when we buy a life insurance product, it is for the long term and it is the same for me when it comes to bitcoin because I view it as insurance.

Short term price fluctuations should be ignored and price declines are simply buying opportunities.

Of course, I am going to remind myself of the importance of doing our own due diligence before making any decision.

Please remember that I am not telling people what to do.

I am just talking to myself.

OK, now, the numbers.

Passive income for 2Q 2025 came in at 

S$95,974.56

This is almost 18% higher then passive income received in 2Q 2024 which came in at $81,339.05.

DBS, OCBC and UOB did most of the heavy lifting.

This year, looking ahead at 3Q and 4Q, in total, I should still receive more than enough passive income for my needs.

The higher dividends from DBS, OCBC and UOB will compensate for the reduced contribution from IREIT Global as their Berlin property is being redeveloped in the next two years.

2026 might not be as comfortable as OCBC and UOB are paying special dividends for one year only.

Take a deep breath.

I still have my CPF savings.

Always the worrier, I know.

Finally, I am announcing my semi-retirement from social media.

It is really for my mental health.

What does semi-retirement mean?

No daily, monthly or even quarterly updates.

I might produce 2 or 3 blogs and videos a year because I know that there are people who are still interested in following my journey because they find it entertaining.

Yes, no financial advice here.

Just entertainment.

Till the next one, stay safe.

If AK can talk to himself, so can you.

My YouTube channel: AK71SG.

Gold, silver and Bitcoin as insurance.

Long time readers of my blog might recall that I hold some gold and silver.

Some readers might find this surprising since value investors like Buffett and Munger do not believe in holding precious metals.

In case you are relatively new to my blog and want to find out more, please read the following blog:

Why investors for income buy gold and silver?

I don't want to rehash the old blog.

Too lazy. ;p

Anyway, it has been many years since I bought more gold and silver.

When I took a look recently, I found that, together, gold and silver formed only 2% of my portfolio.

This is lower than what I think I should have as insurance against fiat currencies.

I was watching some videos on the topic when I stumbled on a video by Robert Kiyosaki who has always said that keeping some gold and silver was sensible.

However, in that particular video, there was a twist because he was also talking about Bitcoin and why we should keep some.

That was very intriguing to me as I don't remember him talking about Bitcoin before. 

To be fair, I don't follow him and what I know about him is probably dated.

The last time I blogged about him was in 2013:

Rich Dad, Poor Dad!

Anyway, long time readers might remember what I thought of Bitcoin before.

If you don't remember or if you are new, read this blog:

My final word on Bitcoin and friends.

Like the Dollar, Bitcoin was a currency to me but unlike the Dollar, other than being a digital currency, Bitcoin was not a fiat currency.

Then, while looking for more information, I found a video by Kevin O'Leary who said that institutional investors are looking at Bitcoin not just as a currency but as a property to hold.

So, just like gold, many institutional investors are looking to hold some Bitcoin.

Why?

They believe that Bitcoin is digital gold and, just like gold, Bitcoin is supposed to be a good store of value.

Digital gold for a digital age.

The truth is Bitcoin has gained recognition and a higher level of acceptance. 

It has become increasingly mainstream.

The network effect is very strong here.

Source: Investopedia.

So, if we believe in having insurance against fiat currencies, we might want to hold some gold, silver and also Bitcoin.

I already have some gold and silver.

After watching those videos, I started thinking of getting some Bitcoin.

I admit that I am a dinosaur when it comes to tech stuff.

Don't even have Whatsapp.

I am very set in my ways and relatively comfortable with what I am doing and what I already have.

In a more recent blog on retirement drawdown strategy, I said that, in my retirement, I don't want to worry about outliving my savings.

So, my retirement funding strategy is such that I would probably never have to draw on my savings. 

In fact, my savings could even grow in my retirement.

See:
Retirement drawdown strategy.

However, never say never.

Murphy's Law.

Fiat currencies are very flawed, after all, and having a crisis mentality and getting some insurance is probably a good idea.

So, I believe we need some insurance for this which is why I hold some gold and silver.

Just like how I stepped out of my comfort zone this year when I got some exposure to Chinese tech stocks, I decided to step out of my comfort zone once more to get some Bitcoin.

Why not simply get more gold and silver?

I could do that but, like I said earlier, digital gold is for a digital age.

I don't know what the future will bring but I really like "Sword Art Online" and "Log Horizon."

Is the Metaverse all hype or would it become mainstream?

I don't know.

I made the decision to get some Bitcoin some time after I decided to get some exposure to Chinese tech and both decisions surprised me for a short while.

Why a short while?

Well, considering that the prices of Chinese tech stocks and Bitcoin had already plunged significantly, maybe, it wasn't so surprising that I got interested when I did.

Anyway, the plan was to have Bitcoin make up 2% to 3% of my portfolio.

Then, together, gold, silver and Bitcoin would form 4% to 5% of my portfolio.

Ray Dalio's perspective on having a small percentage of our portfolio in Bitcoin for the sake of diversification resonates with me:

Still, I have only bought a tiny bit of Bitcoin so far and it isn't even 0.5% of my portfolio yet.

Why did I not buy more?

To invest in Chinese tech was to invest in undervalued productive assets and I nibbled even though price was down trending.

It was just to get a foot in the door.

In comparison, I cannot tell if Bitcoin is undervalued nor is Bitcoin a productive asset.

Bitcoin is just like gold and silver.

Alamak! 

How like that?

All I have to depend on is technical analysis.

Very dangerous for me as I am probably somewhat rusty and could get tetanus from the exercise.

Anyway, I am in no hurry to have Bitcoin form 2% to 3% of my portfolio.

I will take my time.

Bitcoin's price is very volatile and big price swings are pretty normal.

Looking at the chart, I see what is possibly a bear flag, Bitcoin could go higher before plunging again in price.

So, after getting my smallest toe in the door earlier in the week, I will pace myself and accumulate whenever price swings lower.

I might get some Etherium too as that's the runner up to Bitcoin in terms of market cap so that I wouldn't be putting all the eggs in one basket.

However, Etherium is not exactly digital gold and, so, exposure to Etherium should be relatively small.

What about Litecoin?

Litecoin is digital silver like Bitcoin is digital gold.

However, buying Litecoin using Gemini, the crypto exchange I signed up with, requires me to use Bitcoin to do so.

So, to avoid paying more commission, I will mostly stick to Bitcoin.

OK, back to the present.

Drumroll, please.

I have done it!

I am a newly minted holder of Bitcoin.

2022 is turning out to be a year of surprises on a personal level.

 

Like I said, after my initial tiny purchase, the strategy is to accumulate mainly Bitcoin whenever its price weakens.

With this strategy, if Bitcoin weakens in price, I buy more and if Bitcoin appreciates in price, it means I wouldn't have to buy as much to have it hit 2% to 3% of my portfolio.

So, whichever direction Bitcoin goes, I am good with it.

OK, long time readers know I believe in keeping an emergency fund.

Emergency fund is in a chest labelled: "CODE BLUE!"

See:

How much should we have in our emergency fund?

All my gold, silver and Bitcoin will go into another chest.

This chest will be labelled: "CODE RED!"

Please note that I am not getting Bitcoin because of some get rich quick idea. 

We want to be careful as there are people who would pitch it that way.

Source: MAS.

Remember, nobody cares more about our money than we do!

Recently published:
Recession is coming and cash is trash.

Related posts:

1. Investing with some common sense.

2. Nobody cares more about our money than we do!

3. Largest investments updated (1Q 2022.)

$500K in gold and waiting for stock market crash.

Gold is not a productive asset.

Hi boss!

Like to ask you on a topic (precious metals) rarely mentioned on your blog. I love precious metals (gold and silver) and anything in gold I can wear. I liquidated all my shares in 2013 in anticipation of a market crash that didn't happen till date.

If I were to liquidate all my gold today, I will get back 500k. 

I like to ask should I continue to keep the metals waiting for the crash or should I divest (part or all) and return back to the share market. Should I practice patience (since 2013) and continue to wait for precious metals to go up 50-100%? Or return back to the stock market for dividend play?

Hope to hear you speak to yourself. 

Thanks boss!

Hi,

I don't know what is going to happen in the future.

I do know that:

1. Physical gold and silver do not generate income despite what some people might con-veniently claim. However, we can make or lose money trading gold and silver.

http://singaporeanstocksinvestor.blogspot.sg/2012/04/fraud-taking-money-from-some-adults-is.html

2. Physical gold and silver do have value and keeping some as an insurance is not a bad idea. They form a small percentage of my portfolio.
http://singaporeanstocksinvestor.blogspot.sg/2016/07/why-investors-for-income-buy-gold-and.html






If you have decided that you want to invest for income now, I would suggest that you sign up for Dividend Machines and learn the ropes first:
http://singaporeanstocksinvestor.blogspot.sg/2017/02/financial-freedom-through-building.html

It will help shorten your learning curve.
Best wishes,
AK

Buying investment grade gold in Singapore?

Reader says...

Hi AK, would like to check with you on gold products.




1) What are some of the products if we we would like to use CPF to purchase gold? Is it recommended to purchase using CPF?

2) For purchase of physical gold, are there any considerations when purchasing? Understand UOB gold should be quite cost efficient if you purchase minimum weight.

3) Why is gold bullion coin is more expensive than pamp gold bar

AK says...

Read:
Why investors for income buy gold?

1) I believe the opportunity cost for using our CPF savings to buy gold is rather high.

I will not give up the risk free returns to speculate on gold.




2) I buy gold bullions from UOB.

The Kilobar is probably the most value for money, weight for weight.

However, it isn't practicable for most of us and not very practical.

My choice is the 1 oz bullion.




3) Bullion coins of same weight from different mints can differ in prices but UOB sell them at the same price.

It doesn't matter coins or bars.

If we are buying as an insurance, it is sensible to simply go for best value.



Related post:
Singapore Precious Metals Exchange.

Why investors for income buy gold and silver?

It has been a long time since I blogged about having some precious metals in our portfolio and some newer readers might not even know I blogged about gold and silver before.


What do gold and silver have to do with investing for income?

Sounds like a scam?






If you think like this, congratulations! 

You will never fall victim to Geneva Gold and their friends!


Gold and silver coins can be mesmerising. 

I know. 

They look so shiny and beautiful. 

They twinkle, reflecting light. 

They look almost like they are winking at you.

I have a friend who fell so much in love with the two silver coins I gave him as birthday presents that he went and bought many more in different designs. 

I gave him bullion coins but he went and bought proof coins with numismatic value (i.e. worthy of collection). 

Oh, dear.


Anyway, why do I have gold and silver in my investment portfolio? 

Are they investments?






Many people say that we should have some precious metals in our portfolios. 

The late Dennis Ng had 7% of his portfolio in gold and silver, if I remember correctly. 


Dennis was concerned with the excessive money printing in the world and this is also why Jim Rogers says we should have some gold.


Fiat currencies are flawed. 

Governments around the world can print as much of their own money as they like. 

The supply is, theoretically, limitless. 






This infinite supply of paper money is unlike gold and silver as their supply is finite. 

Technology has not found a way to synthesize gold or silver.

Basic economics tells us that, over time, excessive money printing leads to immense inflationary pressure.

So, if you think that I buy gold and silver as an insurance against fiat currencies, you are right.






Of course, if we are traders, we can trade some gold and silver for profit. 

However, if we are investors for income, then, buying gold and silver requires an understanding that although precious metals are not income generating assets, they are probably important enough assets to keep some.

I can hear some protesting.


Yes, gold and silver are not income generating assets and it will even probably cost us some money to hold them. 

OK, even if we do not keep our gold and silver in a safe storage facility, we would still incur opportunity cost as the money used to buy gold and silver could have been invested in income producing assets instead.


Ouch. 

Yes, I know the feeling.

Do you believe in insurance? 

In the purest (and correct) form, insurance is an expense. 

It is not free of cost. 

It is not an investment. 

It doesn't generate income.

The elderly understand and believe in gold as they see it as a store of value.

I remember when gold got cheaper in years past, my grandma would go to the goldsmith to buy more gold. 

Not the best way to buy gold as I would have bought gold bullion coins instead but why did she think the way she did and did the thing she did?

I like to think that I understand.







So, should you buy some gold and silver? 

I suppose it will depend on what you believe in.


Related posts:
1. Where to buy gold?
2. Silver bullion coins.
3. Silver savings account.

Why we should buy the biggest and most expensive home?

Bro, good, knock some sense into her head!






Whenever I tell people not to buy a home that stretches their finances to the max (and beyond), often, I would get the reply that if they don't buy a home that is as big as possible, that is as expensive as possible, they might not be able to afford something like it in future due to inflation.

I have blogged about how our homes are really consumption items and not investments although it is hard for many to accept that especially when they see real estate prices in Singapore sky rocketing in recent years.




Of course, in recent months, the mood has become a tad more cautious but many people still think of their homes as investments and assets which are a good hedge against inflation. 

A recent argument put forward by someone along this line provided the catalyst for this blog post.

That someone said recently that if I were willing to buy some physical gold and silver as a hedge against inflation, why not a bigger and more expensive home?

Well, I have to say that my motivation for having some gold and silver is, in fact, an insurance against the flaws of fiat currencies. 

Embedded in that motivation, therefore, is the belief that precious metals are a hedge against inflation. So, this person is right in this respect. 

However, his understanding is incomplete.

The vast majority of us have to use leverage in the purchase of a home. 

A home purchased with a loan is a liability for the next 20 years, 25 years, 30 years or whatever the duration of the loan should be.

Only a home that is fully paid with our own money is an asset. 

Before that, we might have control over the property and the ability to enjoy using it but we do not have ownership of the property.





Another point is that if we have developed a crisis mentality, we would know that having some precious metals as insurance also makes sense because they are portable. 

Our home, even a shoebox apartment like mine, is not portable. 

Well, there are exceptions, I suppose, and those who live in caravans and houseboats might be the really smart ones.





Finally, precious metals usually form less than 10% of our wealth, for those of us who have them. 

However, for most of us, our homes easily form 50% or more of our wealth. 

This is why people say that Singaporeans are asset rich but cash poor. 

That asset they are referring to is usually our home.

"Professor Benedict Koh, director of the Singapore Management University's Centre for Silver Security, says the asset-rich, cash-poor phenomenon is an outcome of over-investment in property. And the proportion of such seniors is only going to rise as the population ages, say Prof Koh and other observers.


"Ms Peh Kim Choo, director of Hua Mei Centre for Successful Ageing, is worried that the asset-rich, cash-poor problem will be exacerbated as baby-boomers retire over the next 20 years. This is the generation that entered the workforce after CPF and the message of home ownership were introduced, she says.


"As more of these folk retire, says Ms Peh, "that is where we will see a lot more of the asset-rich, cash-poor situation". It cuts across both public and private housing, she notes. Her centre has counselled such seniors living in larger HDB flats."

Source:
http://www.straitstimes.com/the-big-story/case-you-missed-it/story/asset-rich-cash-poor-retirees-speak-20131203

What makes thinking that we should get the biggest and most expensive homes we can afford now because real estate prices will always go up in the long term particularly risky is complacency, the lack of a contingency plan, the lack of a crisis mentality.

Of course, vested interests would want to propagate the belief that there is never a bad time to buy a home and we don't have to time the market.

Apart from questions we should be asking these vested interests, we should ask ourselves some questions.


What if we were to lose our jobs? 

What if we were unable to continue working for any reason? 

What if we had bought at the peak of the market? 

What if the property market should crash in the next few years?


Do we have the financial resources to cope in such instances and if we should have some financial resources, would these financial resources remain strong or weaken in tandem?





I have been through a few economic cycles. 

I have seen how bad the bust in an economic cycle could be and how they affected families and friends.

It could be that this time it is different as I certainly do not possess the ability to look into the future.

However, we might want to remind ourselves that although history does not repeat, it does rhyme.




Related posts:
1. Disastrous investments in the property market.
2. Singapore properties will surely make money.
3. Two questions to ask buying investment properties.
4. Buying a home within your means.
5. Buying a property: Affordability and value for money.

Where to buy gold? Not from Suisse International.

The main reason for me to buy gold is to guard against the inherent problems of fiat currencies which are very flawed. So, having some physical gold, to me, is an insurance. 

All of us need some insurance and having up to 5% of our wealth in the form of gold isn't excessive.

Why not buy gold and receive income from it? 

Yes, that was what some entities out there told some "investors". Unless you do not read the news at all, you would have heard of such cases. 

If you know of other entities which are still saying this, trying to make you part with your money, be afraid. Be very afraid. 

Oh, while you are trembling with fear, do everyone a favour and report these entities to the Monetary Authority of Singapore (MAS).

Please don't be like Mr. Louis Tan who put in $40,000 and persuaded his friends to do the same because he would get a better rate for himself if he were to bring in more business for the company.




Mr. Louis Tan is ignorant, greedy, selfish and soon to lose a few friends.

Report these entities to the MAS and you could be saving people like housewife Y.H. Yang who is 53 years old and seem set to lose $2.2 million, her life savings which included money she received after selling her ancestral home in Shanghai.

We had Genneva Gold in 2012 and Gold Guarantee in 2013. Now, we have Suisse International.

Read report: here.

"After we joined, we also brought our friends in because (Suisse) promised to give us better returns and sell us gold at a cheaper rate if we recommended others," said operations manager Louis Tan, 36, who put in $40,000 last June. 

It was easy to convince their friends to join because the company promised them about $1,000 a month, which worked out to a 20 per cent return, for every kilogram of gold they bought.

Remember, scams come in many shapes and sizes. They could be as small and simple as some magic stones but they could also be quite sophisticated and much bigger like oily pods, plots of land which should be profitable or houses which are ecological.  

Ecological? Green is the color of money, isn't it? 

Related post:

1. Taking money is like taking candy from a baby.

2. Advice from a fraudster.

3. Thought process of scam victims.