October 27, 2009
– Comments (9) |
RELATED TICKERS: GLD
OMG! You have to see this site!
How many naive suckers are there in the world!
Methinks Nigerians are behind this.
Ok... either I need an afternoon snack... or the particulates I inhaled whilst adding insulation in my house recently are getting to me...
Just what is the hook here?
Are they claiming to be selling solid gold and silver bars at way below the current "market" prices? Is this just some kind of scam trying to unload more gold plated pseudo currency?
MSN Money has called Swoopo "The crack cocaine of online auction websites", and stated that "in essence, what your 60¢ bidding fee gets you at Swoopo is a ticket to a lottery".
Swoopo is legit. The bidding process is how they make their money. You have to pay each time you bid on an item - not just per item, but per bid. Get enough people to bid and you make your money. Plus each time a bid goes through, the end time is extended.
But I'm not sure how they're making their money off PM's on the cheap!?!? I mean $10 for a 1oz gold bar?!?!
They make money on the bidding process.
They once sold a mac book pro for 38$, but made 2600$ based on the number of bids.
If they're all about the bid fees, then who is providing the merchandise?
In the case of those pm auctions perhaps some enormously disappointed consignees?
Is the site really legit?? First I've heard of it.
I looked at this site about a year ago.
It's an interesting concept and I think they'll be profitable as a fad. Then lose their audience as they smarten up.
It's not like ebay where you can go online and list an item....
I'm not 100% but I think they have an order fulfillment house that completes the orders once the auction is over.
Maybe Comex should check out these auctions before they default :P
The fees are apparently a buck a piece now from what I've heard. When you bid the price goes up 15 cents but it adds time to the clock to allow more bidders.
Since some people use bid butler, the number of bids can go up quickly over and over again even if there are only seconds left on the clock.
Even if your do get in a bid in the last 30 seconds you add enough time to the clock for somebody to have the chance to bid.
So to stay in the running, you have to bid over and over again in the last 30 seconds. If you get enough people that want the same thing, you might put in 300 bids to get that $1000 bar of gold. That's 300 dollars for just the chance to be the last man standing, plus the price that you bid and shipping costs. If there are 10 other people doing the same thing, then they just sold that ounce of gold for $3000 plus the other bids before you hit the last 30 seconds.
It's pretty ingenious, but they have been accused of a lot of fraudulent thinks to pump up the number of bids.
There are a few ways to make money off the ignorance of others if you want to bid, but once other people figure that out, there will be too many people doing it and the suckers won't bid anymore. The site will then fail.