Are HYIP s Fact or Fantasy?

   The name for the HYIP says it all. It lures investors into a world where there as many hidden riches as there are hidden dangers.

   HYIPs - what are they?

   HYIP stands for High Yield Investment Program. They are simply programs offering a high yield investment. The name alone suggests they offer the most profitable investments available today. Interest rates of up to 100% a month are not uncommon. In general the interest rates range anywhere between 5 – 250% a month!

   The HYIP phenomenon grows bigger and bigger on the internet today. Every day new programs are being launched. Lots of people are apparently earning fortunes investing in these programs.

   However, there are more scams out there than serious long term programs. Over the years large numbers of people have lost their money as a result of being involved in HYIPs.

   How are they different?

   HYIP's use a wide variety of investment strategies. Some invest in stocks, others in property. There are even HYIPs investing in other HYIPs.

   Then there are the scammers programs that are not investing at all. They are not insured investments. They are not monitored or regulated by any government entity or overseeing body of any type onshore or offshore. Even when they say they are guaranteed the most ever likely to be guaranteed is your initial investment.

   Most HYIP's use different e-currencies as their way of accepting funds from members. E-gold is undoubtedly the most commonly used one hence the many program names containing “Gold” or “E-gold”. E-currencies makes instant and secure money transfers possible online and have made HYIP's much easier to get into than mutual funds or shares.

   Risk factor?

   Given the fact that the HYIP industry is a very risky one, most people are very hesitant when it comes to investing in HYIP's – which is legitimate. However, not being aware of the risks is the main reason why people lose their money.

   Although all markets have their share of con-artists, the HYIP arena seems to have more of them than many other industries. This is because there is a lot of money involved and the fact that it’s pretty easy to steal money over the net. There are some well-run and conscientious HYIPs out there that will make money for you with little risk. Often run by groups of investors that know what they are doing, they tend to invest in markets that are not well-known and catered to by the established brokerage houses such as Smith-Barney.

   If done correctly, High Yield Investments can be very lucrative. But always keep in mind that even professional traders that run winning HYIPs lose at times and may not be able to pay you occasionally.

   Due Diligence

   Go to http://www.GoDaddy.com or http://www.Whois.com and look up the domain name. (You will find this link at the bottom of the Godaddy page.) In that listing you may find this info:

   1. Phone number 2. Fax number 3. Name to Contact 4. Who hosts the domain. 5. Mailing Address

   This will at least give some indication of whether the company started the investment program with the intention of being legitimate.