Post: #1

A source that shall remain unnamed tells me that Mongolian banks are paying very high interest rates right now. Depositors can yield upwards of 14% in funds denominated in one of the world's best performing currencies. Apparently, Mongolia is emerging as one of the most exciting frontier markets where fortunes are aggressively being made.

I haven't conducted my full-on due diligence but my quick fact-checking has concluded that this appears to be legit.

Check out the data from Golomt Bank--the largest privately owned bank in Mongolia.

http://www.golomtbank.com/en/249

You don't even need to be there to open an account and you can call a specialist for details at any time (see the number in the top right margin of the article). Seems like a win and it sure as hell beats the measly "less-than-one percent" savings rates US banks are currently offering.

Post: #2

The catch is that you have to keep your money in volatile mongolian currency (MNT) to get that type of interest rate.

Post: #3

(01-16-2012 11:56 AM)BalkanCynic Wrote:  The catch is that you have to keep your money in volatile mongolian currency (MNT) to get that type of interest rate.

The MNT is among the world's best performing currencies.

http://en.wikipedia.org/wiki/Mongolian_tögrög

That market is far from reaching its peak and is continuing to boom. Of course, it would have been a far more lucrative endeavor in the early 2000s, before the word got out so publicly (MNT was the world's best performing currency in 2010, for example). 14% return on a 12-month term is as good as you're going to see anywhere (legally speaking).

Post: #4

Two other countries to keep on your radar for opportunities is Myanmar (Burma) and post-Chavez Venezuela. Diplomatic relations between the US government and Burma are warming up. Only a matter of time before that extends to private sector links. Once that market opens up, it will be an investors' bonanza.

Post: #5

I've been following the news on Burma closely lately. It'll be interesting to see how it develops both in terms of investment opportunities and poon possibilities.

Post: #6

Mongolian girls are prostitutes in China. Don't ask me how I know

Post: #7

Iceland was paying out rates like that a couple years back and you know how that ended. Feel sorry for anyone holding kroners at that time.

Post: #8

(01-16-2012 11:31 AM)Hencredible Casanova Wrote:  A source that shall remain unnamed tells me...

HC, why the big secrecy about "A source that shall remain unnamed"? Anyone can sign up to Sovereign Man.

It's just a coincidence you throw up this post within hours of Simon Black and the SM crew posting the email.

Here is part of the email that I and anyone else signed up to the free sovereign man list received:

"If you're happy earning less than 1% interest in your savings account (and then paying taxes on that 1%), then please delete this email immediately.

Simon Black earns 14% in his bank account. And his money is denominated in one of the world's best performing currencies.

When he tells people about it, they don't believe him. They say it's impossible. They say it's a scam. Some people even get downright angry. That's because they get their information from CNN, Fox News, and the federal government.

Simon Black gets his information by putting boots on the ground... and going through the steps himself.

That's exactly what he's done in Mongolia-- one of the world's most exciting frontier markets. Fortunes are being made in the country right now. And the banking system is legitimately paying upwards of 14% to depositors."

It's cool your sharing this info with those not signed up and discussing it, but why the super secret source pose?

Definitely agree in the Burma/Myanmar call, the doors will be coming down soon if things keep progressing.

Post: #9

(01-16-2012 08:46 PM)basil Wrote:  

(01-16-2012 11:31 AM)Hencredible Casanova Wrote:  A source that shall remain unnamed tells me...

HC, why the big secrecy about "A source that shall remain unnamed"? Anyone can sign up to Sovereign Man.

It's just a coincidence you throw up this post within hours of Simon Black and the SM crew posting the email.

Here is part of the email that I and anyone else signed up to the free sovereign man list received:

"If you're happy earning less than 1% interest in your savings account (and then paying taxes on that 1%), then please delete this email immediately.

Simon Black earns 14% in his bank account. And his money is denominated in one of the world's best performing currencies.

When he tells people about it, they don't believe him. They say it's impossible. They say it's a scam. Some people even get downright angry. That's because they get their information from CNN, Fox News, and the federal government.

Simon Black gets his information by putting boots on the ground... and going through the steps himself.

That's exactly what he's done in Mongolia-- one of the world's most exciting frontier markets. Fortunes are being made in the country right now. And the banking system is legitimately paying upwards of 14% to depositors."

It's cool your sharing this info with those not signed up and discussing it, but why the super secret source pose?

Definitely agree in the Burma/Myanmar call, the doors will be coming down soon if things keep progressing.

Lol. Tranquilo man. Of course I know several members of the forum are signed up to Sovereign Man. That's how I learned about it. I was just speaking in jest. Don't take it the wrong way.

As for Mongolia, it's not a closely guarded secret. Its currency was revealed as the world's best performing in the WSJ back in 2010, which is a pretty big platform obviously.

Burma is where all eyes should be on right now in terms of investment opportunities. Post-Chavez Venezuela is also a big one. Chavez's cancer is far more serious than he's letting on and he could really pass away any day now.

South Sudan is another big one but the market free-for-all seems to already be underway. Probably missed that bus.

Post: #10

(01-16-2012 08:46 PM)speakeasy Wrote:  Iceland was paying out rates like that a couple years back and you know how that ended. Feel sorry for anyone holding kroners at that time.

Ah good reference. I remember that. That caused huge diplomatic turmoil between the governments of Iceland, the UK and the Netherlands (the latter two countries provided many depositors). Iceland ended up absorbing the losses from the failed banks and repaying the depositors in full, but it came at a big cost.

Post: #11

I made over 50% on an ASX listed company in 15 months out of goings on in Mongolia.

A lot of coal people from Australia are heading into Mongolia as it is an untapped resource, only a railway from China.

It is exciting times there, but putting $$ in a foreign bank is a currency game first and foremost. As far as being a well performing currency in 2010 and 2011, past performance is no indicator of future performance.

Post: #12

(01-17-2012 12:01 AM)Hencredible Casanova Wrote:  

(01-16-2012 08:46 PM)speakeasy Wrote:  Iceland was paying out rates like that a couple years back and you know how that ended. Feel sorry for anyone holding kroners at that time.

Ah good reference. I remember that. That caused huge diplomatic turmoil between the governments of Iceland, the UK and the Netherlands (the latter two countries provided many depositors). Iceland ended up absorbing the losses from the failed banks and repaying the depositors in full, but it came at a big cost.

Iceland is not a good comparison they weren't paying anywhere near this it was more like 5% and the Iceland banks were trading in the UK so it felt much the same as putting your money in any other bank.

You also had protection from the UK government so up to a certain limit your money was safe even if the bank went under as it did.

Putting money in a Mongolian bank is definitely a risky investment.

Post: #13

Anyway younger guys with limited bankrolls can get involved in this?

I'm assuming in wouldn't be worth the effort to open a mongolian/ burmese/ etc bank account with $5-10K, especially if they are unable to fly there in an emergency.

Post: #14

The rate is 7% for funds denominated in USD and held for 24 months (so this is like a short-term CD). Opening an account for foreigners appears to require a "Valid passport, Employee reference letter OR official letter of settlement in Mongolia." This would appear to rule out people residing outside of Mongolia unless you could somehow procure one of these letters. Anyway, I subscribed to the SM news letter.

Post: #15

(01-17-2012 01:57 PM)Menace Wrote:  The rate is 7% for funds denominated in USD and held for 24 months (so this is like a short-term CD). Opening an account for foreigners appears to require a "Valid passport, Employee reference letter OR official letter of settlement in Mongolia." This would appear to rule out people residing outside of Mongolia unless you could somehow procure one of these letters. Anyway, I subscribed to the SM news letter.

So is it 7% or 14%?

Post: #16

(01-17-2012 02:14 PM)thegmanifesto Wrote:  

(01-17-2012 01:57 PM)Menace Wrote:  The rate is 7% for funds denominated in USD and held for 24 months (so this is like a short-term CD). Opening an account for foreigners appears to require a "Valid passport, Employee reference letter OR official letter of settlement in Mongolia." This would appear to rule out people residing outside of Mongolia unless you could somehow procure one of these letters. Anyway, I subscribed to the SM news letter.

So is it 7% or 14%?

14% for 12 months if denominated in Mongolian currency. 7% for 24 months in USD.

Post: #17

(01-17-2012 09:24 AM)Jalouse Wrote:  

(01-17-2012 12:01 AM)Hencredible Casanova Wrote:  

(01-16-2012 08:46 PM)speakeasy Wrote:  Iceland was paying out rates like that a couple years back and you know how that ended. Feel sorry for anyone holding kroners at that time.

Ah good reference. I remember that. That caused huge diplomatic turmoil between the governments of Iceland, the UK and the Netherlands (the latter two countries provided many depositors). Iceland ended up absorbing the losses from the failed banks and repaying the depositors in full, but it came at a big cost.

Iceland is not a good comparison they weren't paying anywhere near this it was more like 5% and the Iceland banks were trading in the UK so it felt much the same as putting your money in any other bank.

You also had protection from the UK government so up to a certain limit your money was safe even if the bank went under as it did.

Putting money in a Mongolian bank is definitely a risky investment.

The two countries aren't being compared because of their respective rates, but for the fact that Iceland was a stable, prosperous and highly developed first world country, yet endured a major collapse of a stalwart bank that had many foreign depositors. If that can happen in Iceland, then it can happen anywhere.

It's risky to bet on Mongolia, but that's why the returns are so high. No risk, no reward. US and European investors are looking to park their money wherever it can get the best return, and they are part of a global set of investors who are fueling the boom in Mongolia. It's still going strong.

Post: #18

14 % is for the mongolian currency, 7% for usd. I know nothing about the mongolian currency, but assuming it will not fluctuate against the dollar is a HUGE RISK. 7% for usd is damm good though, I would have to do some due diligence on bank insurance there. Last time I looked I was getting .9% on my savings.

Post: #19

(01-17-2012 11:21 PM)jdelisi Wrote:  14 % is for the mongolian currency, 7% for usd. I know nothing about the mongolian currency, but assuming it will not fluctuate against the dollar is a HUGE RISK. 7% for usd is damm good though, I would have to do some due diligence on bank insurance there. Last time I looked I was getting .9% on my savings.

Good point. Definitely would have to make sure they've got something on some level akin to the FDIC here in the States.

Post: #20

(01-17-2012 11:21 PM)jdelisi Wrote:  14 % is for the mongolian currency, 7% for usd.

7% is a hell of a lot to pay for a currency hedge. I mean who wouldn't take the 14% and buy their own currency put at those prices?

For 7% in USD, what is the standard mortgage rate in the U.S? About 4-5%?

Anyone can draw down on their home, and stick it in this vault for 2-3% arbitrage? The insitutionals would go crazy on 7% because they can short t-bills.

This sort of risk premium indicates the bank is in trouble, or mongolia needs foreign money.

Post: #21

The reason why they are paying less on the US dollar is because it is a currency that is losing value, big time.

Mongolia I believe has loads of natural resources unlike Iceland, the Chinese are eyeing up the country of course.

The Icelanders refused to pay back the money, they protested against it and insisted that the bankers fix the mess that they created. Many of the bankers fled the country for Europe and the banks in Iceland somehow survived.

HCassanova - are you thinking of investing some money??

Post: #22

(01-18-2012 01:02 AM)rudebwoy Wrote:  HCassanova - are you thinking of investing some money??

Definitely. That's right up there with getting as many lays as possible this year.

Post: #23

If it sounds too good to be true...

Post: #24

(01-18-2012 05:49 AM)Hencredible Casanova Wrote:  

(01-18-2012 01:02 AM)rudebwoy Wrote:  HCassanova - are you thinking of investing some money??

Definitely. That's right up there with getting as many lays as possible this year.

A man with his priorities straight.

Swooping Girls and Making Money.

Post: #25

According to The Economist, Mongolia is supposed to grow faster than any country in the next decade.

http://www.economist.com/node/21543113?f...ineallmine