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  1. 1. Ross Naylor +48 (22) 389 65 70 (w) +48 512 275 706 (m) ul. Królewska 27 lok 411 Warszawa 00-060 Poland.7 Ways to Spot a Boiler RoomScam I have spoken to a number of clients in Warsaw recently who have complained about Words From the Wise receiving persistent calls from salesmen in Asia, " Buy on the cannons, offering investments. sell on the trumpets."I suspect that many of these offers are nothing more than - Old French Proverbboiler room scams.What is a "boiler room scam" anyway? This is a prettygood definition, from unflattering term used to describe a fraud scheme inwhich salespeople are hired to call unsuspectingindividuals and push investment opportunities. Thesehigh-pressure calls are often used to pitch worthless ornonexistent securities. These operations typically consist Is Gold in a Bubble?only of a large number of telephones in a single room,giving rise to their name. There is a lot of talk right now, that gold is in a bubble, justWith the above in mind, here are 7 signs that the waiting to burst.opportunity being proffered is actually a scam:
  2. 2. Here is a simple test to see if1. High-pressure sales tactics. Salesmen may mak e that is the case.repeated calls and even become abusive, questioning, Ask 10 friends if they have anyfor example, the intelligence of anyone who would pass exposure to gold (either physical,up such a "wonderful opportunity". etfs or mining companies).2. A demand for an immediate decision Boiler room If more than 6 say yes, yousalesmen want fast action before you have a chance to should start to be concerneddevelop second thoughts or consult with a professional (assuming you have exposurefor advice. yourself).As a result, many deals will be "gone tomorrow", "sold If 8 or 9 of them do then you should be worried and looking forout today" or have "just one of two remaining openings". a good opportunity to sell. If they all say yes, sell every gold[Rest of article here] holding you have (including your mother in laws gold tooth), NOW.Food for Thought In reality, I would be prettyIreland has obviously been centre stage for the past surprised if more than 1 or 2couple of weeks. However they are not alone in facing answer in the affirmative, which would mean that we are far fromdebt problems. Even here in Poland, there are concerns bubble/mania territory.about debt levels. The FT writes about those concernshere. Sign up for futureThe crisis has also caused people to even think about issueswhether it is realistic for a country to leave the Euro. Ihave had a couple of conversations on the subject If you have been forwardedrecently. This BBC article shows how difficult such a task these musings by somebodywould be. else and wish to subscribe for future issues, you can do so here.The type of market volatility that we have seen recentlyalways raises the question of whether it is possible to"time the market". There w as a super piece in this weeks DisclaimerFT on the subject. The views expressed here areFinally, many people have read about Quanti tative my own. They are notEasing and wondered what it actually means. These 2 necessarily shared by AES International. They are subject tobears explain it in a way that makes absolute sense. change at any time based on market and other conditions.My Blog This is not an offer or solicitation for the purchase or sale of any security and should not beIn case you werent aware, my blog is now live. construed as such. References
  3. 3. to specific securities are forYou can go there to find articles from previous ezines as illustrative or informationalwell as thoughts that I couldnt fit into the regular issue. purposes only and are not intended to be, and should not be interpreted as,And finally... recommendations to purchase or sell such securities.Thanks for reading. I know that things get hectic in therun up to the end of the year. Your time is appreciated. Call me: +48 (22) 389 65 70 (w) +48 512 275 706 (m) To disallow Ross Naylor from sending you email with this service, click here.