A sudden avalanche of folks have been asking about this pitch again, so I thought I’d re-share and update my thoughts on something I wrote in the Friday File for the Irregulars back in October of 2013 … so yes, this is getting a little old. Much of this is from that original note, or from my update back in January of 2014, though I’ve gone through and updated my thoughts (and some of the numbers) a little bit.
From my quick glance, the core of the spiel from the Stansberry folks hasn’t changed much for this “Secret Currency” since then, other than to call it the “#1 Cryptocurrency” now that that term has entered the popular lexicon (and indeed, the ad is not dramatically different than it was when I first covered similar ads of theirs five or six years ago).
The one thing that’s particularly different in the last year or two is that they use the curiosity about Bitcoin to catch your attention —
The ad back in 2013 started out as a “warning” about Bitcoin:
“Urgent Message for U.S. Investors:
“Do NOT buy Bitcoin until you watch this public message
“This is the true story of alternative currencies in America — the one you won’t hear anywhere else. The story only wealthy families know. Please take five minutes to watch this message and avoid making a very costly Bitcoin mistake.”
And then went on to compare Bitcoin to a host of past internet failures or value-destroyers like Webvan and Pets.com and Groupon, and then makes the argument that the “secret currency” does the same things Bitcoin does (provide some privacy, get away from the US dollar, etc.).
Which is sort of true — I have some experience with both this “secret currency” and with Bitcoin, I tinkered with Bitcoin myself for a to see how it worked and whether it might be a viable alternative to using credit cards, and I’m not all that impressed with how useful it might become at the moment… though I still have maybe half a bit coin sitting in a “wallet” somewhere.
This is how they introduce the ad now:
“America’s #1 Secret Cryptocurrency:
“This is the true story of alternative currencies in America — the one you won’t hear anywhere else. The story wealthy families know — and which could climb 300%+ over the next few years.
“Don’t buy Bitcoin, Litecoin, Euros, Swiss francs, Chinese Yuan, Gold, or Silver until you take 5 minutes to watch this message.”
What follows was published for the Irregulars as a little closing bonus in a Friday File about a year and a half ago, when Sjuggerud was pitching the “secret currency.” He’s still pitching the same thing, so the basic spiel is similar now.
[excerpted from Friday File, 10/11/2013]
I’ll close with a look at a teaser that many of you have asked about this week — it’s circulating pretty heavily these days, from Steve Sjuggerud, and similar teasers have tended to come up, in my experience, whenever the market is in a state of high uncertainty. That’s certainly the case today.
Sjuggerud has been pitching something similar to this for many years, though not so much lately until the last month or so — and a similar pitch has come up twice now, both in the ads that were signed by Steve’s brother that I covered last month (teasing, among other things, investments with exposure to the Australian dollar and the “perfect hedge” of buying a house with a mortgage) and, more recently, in a new wave of ads for this “Like Gold … Only Better” investment.
Sjuggerud’s brother called this “Rich Gold” and described it this way:
“It’s a secret many rich people are taking advantage of, but it’s basically ignored by the middle class.
“You see, most people think that all gold bullion is the same.
“But the truth is, there are two very different types of gold bullion.
“Regular bullion essentially just follows the price of gold. When gold goes up 10%, regular bullion goes up 10%. When the price of gold goes up 20%, regular bullion goes up 20%.
“But there’s a second type of gold (my contact called it ‘Rich Bullion’) that follows a very different pattern.