The Fighters.
Emily News recently reviewed both Gcprofits and Aurum Bank. In fact, we reviewed Gcprofits only a day or two ago and, in case you missed the review or would like to refer to it as we get into this battle, you can read it here. We reviewed Aurum Bank over a month ago and you can likewise refer to that review here. When writing these reviews, three things stood out:
First, both of the companies have been online for around two years. That’s an extremely long time for an HYIP to survive. Gcprofits has been online for close to 700 days and Aurum Bank recently celebrated its second anniversary. So, this longevity might give the potential investor the confidence that the programs will continue to survive for a long time into the future. A note of caution is that it appears that Aurum Bank might have been “dormant” for most of this period simply allowing the days and months to go by so that it would have a long track record of survival when it finally became active. This might be what happened around the time of its second anniversary. I don’t know the history of Gcprofits in this regard. Possibly, it’s the same situation. So, while these long periods online appear to be attractive, they might not be the complete story.
Second, both companies offer investment plans that have exceptionally high interest rates. In both of the reviews, I recall warning the potential investor that the companies might not be able to sustain them. Of course, the companies would reply to this accusation by saying that their long periods online are proof that they have indeed been making such payments. So, it comes back to the first issue of whether or not the time online is “real” or not. I am not going to attempt to answer that question here. However, it’s something that the investor should keep in mind.
Third, both companies offer a very large number of investment plans. Gcprofits offers 41 of them and Aurum Bank offers 25! In both cases, however, the minimum investment for at least half the plans will be beyond the means of the average online investor.
Many of you might have noticed these similarities as well. Then, of course, you will begin to wonder about which program might be the best program to invest in. There is also the possibility that you might choose to invest in both (remember how important diversification is) or neither (if what they offer simply doesn’t make sense for one reason or another).
What I would like to do in this “battle” is to assume an imaginary investor with a certain financial situation and then see which company can make the most lucrative investment offer. So, here is what the battlefield looks like…
You have $1,000 to invest for six months (180 days). Which program can offer you the greatest return on your investment in that time period? Let’s see what Gcprofits has to offer first and then we’ll take a look at what Aurum Bank has to offer.
You might recall from our review of Gcprofits that there are six sub-plans within each of the seven major investment plans. The difference in the sub-plans is the interest that they pay and that depends on the size of a person’s investment. Sub-Plan 1 went up to $1,000 and Sub-Plan 2 went from $1,001 to $2,000. Well, we have $1,000 to work with. So, I’m going to give our investor another dollar so that he can take advantage of the higher interest rates of Sub-Plan 2. However, in my calculations, I’m going to use $1,000 simply because it’s an easier number to work with. These are the types of simplifications that an experienced investor will make in estimating the yield of an investment plan.
So, for Sub-Plan 2 of each of the seven interest plans, the following chart first lists the name and length of the plan. Then for Plans A and B, which pay interest every day, it lists the daily interest and the total gross interest by the end of the plan. The gross earnings is also given, which for Plan A with the $1,000 initial investment is $1,400 (1,000 x 140/100). The calculation for Plan B is just the same and gives you $2,400. For Plan C, your earnings are paid as a lump sum at the end of the plan. The total percent interest of 150% is given so your total gross earnings will be $1,500 (1,000 x 150/100). The calculations for Plans D through G are just the same and the results are given in the chart.
Plan Days Daily Interest Total Interest Gross Earnings
A 14 10% 140% $1,400
B 30 8% 240% $2,400
C 10 150% $1,500
D 20 250% $2,500
E 30 350% $3,500
F 60 720% $7,200
G 90 1,200% $12,000
To summarize this, at the end of an investment plan, you will receive the total gross earnings as indicated in the chart above. Does it look like Plan G is the best? Maybe, maybe not. We’re not through yet because we are going to let our money work for us for a 180 day period. Plan G is halfway there. The other plans have a longer way to go.
Let’s look at Plan G first. After we earn our $12,000, we still have 90 more days to go until we reach the total of 180 days. So, we will invest it AGAIN in this plan. However, since we are now investing $12,000 rather than $1,000, we move up to a higher interest sub-plan. In this case it would be Sub-Plan 5 that pays 1,650% after 90 days (which is a LOT higher than the 1,200% of Sub-Plan 2). So, after the second 90 day term, our investment would grow to $198,000 (12,000 x 1650/100)! This is a very serious profit. We invest $1,000 and, six months later, we receive $198,000!
Next let’s take a look at what will happen with Plan F. In this case, since the plan runs for 30 days, we will reinvest TWICE to come up to the total of our 180 day period. For our second investment, we start with $7,200. Since this is much higher than our original $1,000, we will use a higher interest sub-plan just like we did with Plan G. Referring to the listing of all the plans on the account page of your website, we see that Sub-Plan 4 for investments between $5,000 and $10,000 is the right sub-plan. The interest it pays at the end of the 60 day period is 920%. So, at the end of this second 60 day period after investing our $7,200, we will receive back $66,240 (7,200 x 920/100). Not bad at all. But, we’re still not done yet! We have another 60 days to go. So, we will invest this again! However, now we have a problem as we are off the chart! The highest sub-plan only goes up to deposits of $50,000. So, we will split our $66,240 up into two parts: $50,000 and $16,240 and make two separate investments. OK, for the $50,000, we go to Sub-Plan 6 and use the interest rate of 1,120%. After 60 days, our investment grows to $560,000 (50,000 x 1120/100). But, there’s more. We still have the $16,240 to invest. That amount will fit in Sub-Plan 5 which pays 1,020% after 60 days. The result of that investment will be $165,648 (16,240 x 1020/100). Adding this to the previous result, our total gross earnings for Plan F will be $725,648 (165,648 + 560,000)! This calculation gives you a taste of the magic of compounding in action. Please see HYIP Insights #11 for an article on this (you can read it here). I wonder what will happen with Plan E that runs for 30 days and where we will have to invest SIX times to get to 180 days.
Here goes!
Let’s do this in a chart format so that we won’t forget which investment we’re on!
First Investment
$1,000 in Sub-Plan 2 to earn 350%. New balance = $3,500 (1,000 x 350/100).
Second Investment
$3,500 in Sub-Plan 3 to earn 400%. New balance = $14,000 (3500 x 400/100).
Third Investment
$14,000 in Sub-Plan 5 to earn 500%. New balance = $70,000 (14,000 x 500/100).
Fourth Investment
Now we are above the max of $50,000 for Sub-Plan 6. So, we will break our total into two parts: $50,000 and $20,000.
$50,000 in Sub-Plan 6 to earn 550%. New balance = $275,000 (50,000 x 550/100).
$20,000 in Sun-Plan 6 to earn 550%. New balance = $110,000 (20,000 x 550/100).
Total at end of fourth investment = $385,000 (275,000 + 110,000).
Fifth Investment
We are again above the max for Sub-Plan 6. So, we will invest $50,000 SEVEN times in Sub-Plan 6 to cover $350,000 and also $35,000 separately in Sub-Plan 6.
SEVEN times $50,000 in Sub-Plan 6 to earn 550%. New balance = $1,925,000 (7[50,000 x 550/100]).
$35,000 in Sub-Plan 6 to earn 550%. New Balance = $192,500 (35,000 x 550/100).
Total at end of fifth investment = $2,117,500.
Sixth Investment
This one will really go crazy! This final total will simply be 550% of the previous result, or $11,646,250. Not a bad return for a $1,000 investment six months before!
Well, I hope that Gcprofits has a lot of money in the bank to take care of investors like this that like to compound their earnings!
There are still more investment plans offered by Gcprofits that we could analyze. However, this one leaves my head spinning. So, maybe this is enough for Gcprofits’ contribution to the battle.
Stay tuned for Part 2 of HYIP Battles #2 when we will see what Aurum Bank’s entry to the battle will look like…
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