Are all International Commodities sites/deals just SCAMS?

For example, just do a quick search for “Aurum Utalium”.

It seems you enter a world of seemingly scam-filled websites with people offering to sell or buy zillions of tons of every kind of commodity — Gold, Sugar, Iron, Wheat, Rice, Diamonds — you name it, and usually in quantities of Zillions of tons, for Bajillions of dollars, etc.

Is any of this stuff real? Are all of these websites just filled with people who are scammers looking for victims? All of ‘em? There are so many! Who are they? What exactly is the scam, if it is? How do they get away with it — it seems so public — any law-enforcement agency can just find these people, and seem to go along with one of their “deals” and catch them, right? It seems so easy, that it seems like they can’t all be scams, or it would just be a law-enforcement-agency-free-for-all, easy way to beef up their conviction rates or whatever.

What in-the-heck is going on??

Yes, they are all scams. There is no international, worldwide internet police force. They take your money, say, from America (you) to Nigeria (them) – there’s nothing you can do about it later. In the example I gave, I think Nigeria actually supports this kind of thing. The scammers have to give probably a huge kickback of the money they ‘make’ to the government.

Don’t you ever wonder why a poor country like Nigeria has bunches of people advertising scams on sooo many websites and – the main question is – where do these poor people get their computers and internet access from or through?
You are correct – their government.


You can replace ‘Nigeria’ with a whole host of other countries – ‘China’ springs to mind quite readily. Their governments WANT people to do this! Good luck with trying to prosecute a Chinese scam website – you won’t even be allowed into the country, and if you do make it in, your case will have ROFL absolutely zero chance of being ‘heard’ – unless you consider it being ‘heard’ as you talking to yourself about it behind jail bars in some terrible province in China as you slowly starve and die of thirst. . .

Remember, China is still a Communist country with absolutely nothing in their law that states you deserve a fair trial.
Oh yeah, (I’m still on China here) – they don’t allow people to access all of the gazillions of websites available. The government is in charge. They block almost every outside website claiming that such websites are ‘propaganda’. The truth is that they only want their LOL ‘citizens’ to hear THEIR OWN propaganda.

Basically, such countries WANT to keep their people in fear and also essentially uneducated. Kind of like sheep, you know.

Another country that does this is Iran – as if you couldn’t have guessed. They (all those nations) (for some unknown reason) believe that they will be a stronger country if they are rulers of uneducated masses of people.

Buying BHP and Rio tinto shares good during recession?

I know commodities go up especially gold and silver during recession. So I was wondering if own shares in BHP the largest natural resource company and rio tinto the largest mining company a good idea especially when inflation is rising at a faster then normal rate?
Inflation is not the worry it’s hyperinflation that I’m worried about. So having stocks like these my best guess would be a good idea.

Let’s straighten out some relationships and terms here.

First, commodities do not typically rise during a recession. A “recession” is a contraction in gross domestic production, meaning economic activity is soft, and price pressure (inflation) is low. In that situation commodity prices historically decline. We are not in a recession now. In fact the recession was declared officially over a few months ago. Don’t confuse this with unemployment. Sure, employment is important. But economic output in the US is expanding right now, despite high unemployment.

Commodity prices do tend to move up when inflation is rising. But we are not seeing inflation rising at a fast than normal rate right now. In fact some folks fear the possibility of “deflation” — which is a general decline in prices. Of course, there are others that believe that even though we have low inflation right now, we’re bound to see higher inflation in the future because of the massive government spending and “money printing” that is coming from Washington. That is probably behind much of the recent rise in commodities such as gold.

You should also recognize that gold is a somewhat special case, because it often trades as if it’s a currency alternative. This is probably a large factor in the rising demand for gold recently. People believe that currencies all over the world are weak and getting weaker, so the buy gold as protection.

Now to the factors behind BHP and Rio Tinto. These mining and resource companies are also benefitting from the rapid economic growth OUTSIDE the US — and especially so in China and other emerging markets. Industrial commodities such as copper are in increasing demand from these growth economies.

So, is owning shares of companies like these a good idea? I’d say yes. Is it a longer term play based on economic strength in emerging economies? Yes. If the US shows renewed economic growth that will only add to the demand.

Are we looking at inflation down the road? Probably. Is gold a good thing to hold as part of a portfolio as protection against that (and against currency weakness?) Most certainly. But is it also possible that interest rates rise over the next few years as the US economy strengthens? Yes. If rates do rise, so too will the dollar, and that will put pressure on gold.

So do you put all of your investment capital into commodity investments? Most certainly NOT!