Today I would like to present you with the interview with the admin of GoldNuggetInvest – a real program that is online since 2006 and is still paying. GoldNuggetInvest is involved in arbitrage betting and the admin is going to tell you more about this activity in his interview. He will also try to answer the question: why is there really no risk involved if you invest with his program? I remind you that you can see more details on the program and my first impressions in the review published here. Today I’ll allow Mr. Spearman the opportunity to speak and to tell us more about his program – GoldNuggetInvest.

“1. Please introduce yourself to my readers. Tell us what previous experience do you have in administrating online programs?

Hello Paul. Let me first express my sincere appreciation for giving us the opportunity to introduce our project to your readers. My name is Robert Spearman and together with my partner Jurgen Wilckens we have founded GoldNuggetInvest back in 2006. Both of us haven’t had any previous experience in running such a program.

2. What is the history behind the formation of GoldNuggetInvest? What was the original concept of the website? When did it start and how have it transformed by now?

I have started arbitrage trading (or betting) in 2001, just after I heard about this money making opportunity, at the beginning with very limited funds of my own and accounts with very few bookmakers. Jurgen an old friend of mine started in 2003 – as well with his own money. At this time it was more or less a hobby for us. We each conducted accounts with a dozen or so bookmakers and since funds were limited we were more busy with moving money from one bookmaker account to another in order to place our sure bets. And this is one of the biggest challenges of sports arbitrage betting. You must know that after you find an arbitrage situation you have to be quick to place your bets with the bookies involved, before the odds change at the other part of the arb, the second or even third bookie, means you don’t have time to move money around. The solution to this challenge is to have funded accounts with as much bookmakers as possible. To make a long story short, we started in 2004 to pool our money together and in 2006 we started to collect money for our betting pool from friends, pals etc. Soon friends started to invite other friends and that was the beginning of GoldNuggetInvest or GNI. Since members been living in different countries there was also a need for a worldwide available and affordable payment processor, which we found at this time in e-gold. Because of the reason that our members deposited with gold, the name GoldNuggetInvest was born. We registered our domain in October two years ago, put up a simple homepage and communicated with our members by email only, there was no script at this time, so members informed us about their deposits and withdrawal requests by email and we were busy keeping our Excel charts up-to-date. At this time we offered only a weekly plan with a profit of 4% and new members by invitation only. However with the ever increasing number of online bookmakers, there are currently around 80 online, and hence more and more arbitrage situations that occur daily, we saw a chance to expand our business to the next level by attracting funds from new members. Furthermore we have developed streamlined processes over the time that enable us to act upon opportunities immediately and as more capital is available the higher number of opportunities we will be able to place bets on simultaneously. More capital also allows us to invest in profitable arbs on events, which are months ahead of time. So we decided to open our doors to online investors without invitation and since we did so on May 1st, 2008 our member base had raised from about 180 to currently close to 700 members.

3. Can you explain the meaning of Arbitrage Betting Pool? How can you make money from it? Please tell us the details of your investment activities.

An arbitrage opportunity in sports betting or other events means that one is able to bet on all possible outcomes of a certain match or event at odds that guarantee profit regardless of who wins that match or event. This is not gambling – it’s just a market phenomenon based on pure mathematics and occurs when bookmakers have different opinions on the result of a certain game or event. Let me give your readers an actual example of such a situation, which we placed the day the interview was conducted:

Football, or for your U.S. based readers, soccer:

English Premier League – Hull City vs Chelsea, the match kicked off on Oct. 29th. Since there is the possibility of a draw, we have three possible outcomes. We found the following situation:

Outcome 1 – Win for Hull City – Odds of 8.60 at Betdaq
Outcome 2 – Draw – Odds of 4.70 at Betdaq
Outcome 3 – Win for Chelsea Odds of 1.65 at Europlay

This discrepancies of the bookmakers opinions guarantees us a profit of 6.9 – 7% and I will explain to you why.

The above situation tells us that Hull City and Chelsea are competing in the English Premier League. It also tells us that Betdaq have odds of 8.60 for the match to be won by Hull City, the same bookie Betdaq have odds of 4.70 for the match to be ended in a draw and Europlay have odds of 1.65 for the match to be won by Chelsea. By applying a simple mathematical formula to those odds, we are able to calculate that we can cover all three possible outcomes of the match and make a guaranteed 6.9 – 7% profit. We have placed our bets in proportion to the odds on each possible outcome. $311.00 staked on Hull City at odds of 8.60 to return $2,674.60, $569.00 staked on the draw at odds of 4.70 to return $2,674.30 and $1,620.00 staked on Chelsea at odds of 1.65 to return $2,673. Therefore we have staked a total of $2,500 and the bets return a risk free profit of 6.9 – 7% – despite the outcome.

We are currently placing more than 3500 of such surebets a month.

4. On GoldNuggetInvest site you stated that there is no risk involved for investors of your site. Can’t you fail? How can it be so? Please explain.

There is absolutely no risk involved for our members! Are there generally risks involved in arbitraging? Yes, but very limited ones: Placing an arb with one bookmaker and then finding the odds has changed when trying to get the other part of the arb on with the second and/or third bookmaker. Therefore we simultaneously place our bets with the bookies involved. The second obstacle is that all bookies have a clause in their rules stating that if they make a mistake, they call it a palpable error, in putting up an odd then they can cancel the bet. One is then left exposed to the other end of the arb. This happened to us twice since 2006 and since each trade is done with only a fraction of our members funds, the risk is calculable. We are paying a very conservative return, having a good margin and therefore we can assure our members that their funds are not at risk at any given time.

5. Tell us more about the investment plans GoldNuggetInvest offers to online investors. What is the minimum and the maximum to deposit? Is the compounding allowed?

We are currently offering two investment plans. Our daily plan is offering a variable profit of 0.7-1.1% daily, on average over the past couple of months it was around 1% daily and a weekly plan with a profit of 6%. The minimum to deposit is $20 for the daily plan and $100 for the weekly plan. Compounding is not an option.

6. As far as I understand there is no expiration for the deposits so one can earn indefinitely. But what if I want my money back?

Yes Paul, that differs us from many other online investment opportunities. Our members deposits do not expire and they can earn money indefinitely. But if they decide to take their money out they can do so after a grace period of 30 days, to protect us from so called hit-n-runners. There is no fee applied for the withdrawal of the initial deposit after the 30 days.

7. What payment processors do you accept and do you plan to add more payment options in the near future?

We are currently accepting LibertyReserve, PerfectMoney and V-Money. We might accept STP and/or AP in the near future, since we got some inquiries regarding this payment systems from prospective members.

8. What script do you use for GoldNuggetInvest website? Is the script secure? Why did you choose it as your online platform?

We are using Tomacero’s Oroscript, which has been customized to meet our demands and tested by independent scripters for backdoors and flaws. We think that this script is advanced, got all the security features a project like ours should have and Mike the programmer is upgrading and enhancing it regularly.

9. What hosting provider do you use? Is GoldNuggetInvest site fully DDoS-protected?

We are hosted on a dedicated server with BlackLotus and have currently Level 3 DDOS protection.

10. What plans do you have for the near future? Are you planning to close your doors to online investors any time soon and become a private program with a limited amount of members?

GoldNuggetInvest might go private again, once we have reached a certain amount of member funds. You must know that there are limitations regarding the bookmakers and we cannot trade arbs with unlimited funds. We aim to have well funded accounts with all possible bookmakers to minimize inter bookmaker balance adjustments which are not only connected with costs – but time consuming as well and during this time this funds cannot be used for our activities. But I guess we will be open for new investors till the mid of 2009 at least. And after that probably by invitation only and only if one of our members is withdrawing a larger stake.

11. In your opinion what differentiates GoldNuggetInvest from similar online programs? What makes it unique and stand out from the crowd?

The main difference is that our members can understand what we are doing with their hard earned money. Our project is for each and every of our members translucent and comprehensible. We are paying a decent and steady return for a long time now and don’t have months of principal lock-up.

12. What would you advise to the online investors when choosing the right program online? Why should they choose GoldNuggetInvest?

Pay attention, be vigilant and do your research when seeking an online income opportunity. Diversify your available funds and don’t stake everything on one card. And if you are seeking long term profits please have a look and visit our site. We are glad to welcome you as one of our members!

13. What is your honest opinion about my blog? Can you give me any suggestions on how to make the blog even more useful for my readers?

Paul, your blog is an enrichment of the online investment community. I appreciate your unbiased opinion, your strictness if for example a program is paying selectively and all your efforts you put into your blog. For me Money-News-Online is the de-facto industry standard in the online investment community!”

I would like to thank Robert for his detailed answers and explanations he provided for the readers of my blog. I hope after this interview many things are made clear for you and now you realize how GoldNuggetInvest can make guaranteed profits from your investments. Anyway, 2 years online is a very long term and I wish the admin and his program at least 2 more successful years. I would like to add that I endorse GoldNuggetInvest program as one of the most reliable ones on the HYIP market now. With all the experience Robert accumulated from 2 years of successul administrating of his program GoldNuggetInvest has a great chance to last for a very long time. This is all for today and stay tuned for another interview that will be published tomorrow!