Art ops/Games
I highly recommend you use extreme caution when investing in these kinds of programs; but here's the info on them.
Virtual Stock Games and Art Opportunity sites for most part are NOT investment vehicles, they are games. There ARE exceptions. Some, like Netartworx ARE actually trading with our funds and making more money with them than they are paying us to perpetuate payouts on their site. Netartworx will probably be moved up into the investment section soon. Most all of the art ops have crashed in the last two months. See program closures.
What Are Virtual Stock Games?
The owners of the virtual stock games, as well as
the "buying art opportunity" sites like to call them virtual stock
exchanges (which, if virtual means make-believe, is quite true), detractors call
them a scam, and those who play them call it easy money; but they don't last.
The art sites actually have real prints available to justify it is not just a
game, but it is the same game - musical chairs, except for those investing
with the funds. It goes like this . . .
You send money, buy shares of one of the pretend companies or a picture or
statue, wait for the price to go up in it's mostly predetermined way, sell your
shares, collect your money. It IS that simple.
Where does the money come from? . . . There are clearly many times more
new people sending money in to play than there are those withdrawing money. It's
been said that some of the games pool the money invested and participate in
high-yield bank trading programs in the European financial markets. If they do
it keeps the game perpetuated longer. Some of the games sell advertising
on their sites which, because of the high visitor volumes, can also bring in big
bucks to perpetuate the game.
What happens if people ever stop sending in money? . . . Well, as soon as
the reserves are used up, clearly there will be no money left to get.
When do you think that day will come? . . . Well, that's the
million dollar question. Many think that with the Internet growth forecasted for
the future, these games could run for many years. Of course no one knows for sure.
I don't think that this will end anytime soon considering the logarithmic growth
of the internet over the next few years.
Why Play Virtual Stock Games?
To make money of course, which raises the
question . . .
Will I make money? . . . Well, lots of people have! And lots of people
lose. I've done both. I recommend that you only play these games with money you
can afford to lose if you play at all. Don't bank on this being any different
than a gambling casino.
Why do companies offer these games? . . . Of course to make money as
well. Most games charge a percentage (around 1.5% - 5%) on every transaction
whether it's buy or sell. It is in their interest (and therefore yours) to keep
people sending money in and cashing money out for as long as possible. I'm
confident that they are getting quite rich just collecting this 1.5%.
Should I play these games?
I have quit playing these types of games because the red ink has exceeded the black. I also no longer participate in art ops that are not investment backed. I concentrate most of my earnings back into the "most proven" programs in the investment section; I do participate in quite a few gifting programs; especially the ones that require no sponsoring; the good ones seem to payout at least more than I've put in with time and I'm just starting to navigate around the downline clubs. I can't say I've had a lot of success there yet; but several look like with a little patience they will produce.
But I think a good stiff warning to stay away from most all of the virtual games which simply deal with feeding old people new people's money is in order. Even Digital Stocks which was so highly touted and took so long to surface has not been the success people had hoped for. An even better example is Virtual shares - check this out.