Many of our readers are interested in offshore investing and offshore investment funds, and they frequently contact us for advice. The question we are most frequently asked is: Do high yield investment programs really exist?

In this article we look first at offshore investing scams and how to avoid them, then we will move on to the topic of genuine alternative offshore investment opportunities that can legitimately generate high returns for investors.

Of course,  programs referred to as HYIPs (High Yield Investment Programs) do exist, but most of them are scams – or more specifically ponzi schemes. There are internet HYIPs where you can invest $10 and get $20 back the next day. And there are more sophisticated scams, involving complicated terminology like ‘bank debentures’ or ’standby letters of credit’. There are whole websites dedicated to scam concepts like ‘offshore fund leasing.’ People frequently lose hundreds of thousands of dollars to these more sophisticated rip-offs. Such funds, once lost, are almost impossible to recover.

One of the ironies about such deals is that the scammers often claim that they are making money with exotic named things inter-bank trading, seasoned notes, and other mysterious offshore financial instruments… some so secretive that ordinary bankers don’t know they exist!

Years ago we used to ridicule such ideas. We used to say that the bankers didn’t know about them simply because such things don’t exist. But the last few years have proven us wrong – there are indeed weird things going on behind the scenes that most bankers don’t understand or even know about! For starters, most bankers don’t seem to realize the facts about the giant Federal Reserve scam, a privately-owned company, printing money backed by nothing, that is responsible for the devaluation of the dollar. And very few bankers understand or have even heard of the mysterious forex operation CLS Bank that settles around $5 trillion worth of transactions every day. The lesson here is that all good scams have an element of truth.

But, here at Q Wealth we like to accentuate the positive. So let’s rephrase the question a bit. Are there any legitimate offshore investment funds where you can make say 10% or 15% return with little risk? The answer is yes, such opportunities do exist. But it does take some work to find them. And once you find them, you should be prepared to dedicate some time to monitoring them.

The general rule is that the higher the rate of return, the higher the risk. Some people are happier than others to accept risk. For example you might dedicate a small part of your investment portfolio to high risk ‘play money’. Younger people can generally afford to accept a higher degree of risk than persons approaching retirement. Absolutely the worst thing you can do, of course, is to put everything into one offshore investment because the worst can always happen.

So where do you find such opportunities? In Q Wealth Report of course! We are constantly on the lookout for genuine investment opportunities and funds that have the offshore advantage. What is the offshore advantage? Since there is no tax deducted at source and no automatic reporting, you can often roll over profits and reinvest them, rather than paying tax on the income. Over a period of five or ten years, the compounding effect can be huge.

The rule of thumb is that with onshore investment funds you might take three steps forward, then two steps back as the tax is deducted. With offshore investing funds, you take three steps forward, then the next year you take three steps forward again… and so on, and so on.

In our flagship Q Wealth newsletter, we frequently spotlight offshore investment funds and opportunities that we have done full due diligence on. There is always a risk, but we can help you minimize it. Since the investments we feature are generally managed offshore, you can participate as a sophisticated investor or via your offshore corporation, foundation or IBC.

Frequently Q Wealth Events also turn into incubators for great offshore investment ideas, that have a potential for high return. Getting together for a few days with like minded, free thinking individuals and simply brainstorming is a fantastic way to get these offshore income generating opportunities off the ground. Our next event will be in Ireland in September, and we will be focusing it even more than ever on offshore investments. Even if you only have a small amount to invest, consider coming along. Contact us to be put on the list and we will let you know as soon as the dates are fixed.

Finally, if you are interested in our offshore investment advice and are new to this site, don’t miss the opportunity to sign up for our free five part course Secrets of the Super Rich, delivered free and without obligation to your e-mail inbox. You will also receive a free subscription to Q Bytes newsletter, which from time to time features serious high value opportunities too.

I usually refrain from commenting on market conditions. There are two reasons for this.

First, I not really a financial markets guy. I get very bored with all those charts, waves, theories and so on. That’s probably one reason why I stand out from all the self-professed analysts out there on the net. On the rare occasions I do open my mouth about the markets, it’s because I have something serious to say.

My job is nuts and bolts offshore structuring. I’m talking, as regular readers of this blog are well aware, about offshore banking, offshore investing, offshore asset protection and hedging against currency collapses. I like active businesses. I do run a private offshore investment vehicle, but it doesn’t get involved in traditional financial markets – only in what might be termed ‘alternative investments.’

In other words, I prefer to invest my money in sound businesses that I can actually see and exercise some influence over. Businesses where I have the CEO’s personal cellphone number.  Since my modest little fund doesn’t handle multiple billions, I naturally invest in small businesses without stock market listings. I look for small, recession proof businesses in growth areas that will not be affected by short-term financial swings. This is only a hobby at the moment, but over the last few years it has turned into a very profitable one.

Second, I don’t believe the markets are free at all. And again, why complain about something I don’t have any control over? Much better to focus my limited time on something like writing or helping my clients protect their assets.

Sure I keep a little play money in my offshore brokerage account. And I surprise myself sometimes by how successful I am. Markets depend first on psychology, second on manipulations by governments and certain elite forces, and a distant third on actual fundamentals. Then, I remember that I subscribe to a few really good investment research newsletters that certainly make me money. (I’ve listed some of them before, but if anyone is specifically interested, let me know) But really I only put money in my brokerage account that I can afford to play with.

But if clients come to me seeking advice on financial markets, that is not my area. All I can do is refer them to one of my several trusted contacts in this area.

I must say, however, that last week  was abnormally glued to the screen. I always knew gold would go up, and I’m sure it will go a lot higher yet. But it certainly seems like Joe Bloggs on the street has decided gold is a good buy at the moment. The mainstream media hype, which is all that is backing the fiat currencies of the world, must be failing if even average investors are turning to gold. Heck, gold is now even sold in vending machines in Europe!

This week saw the news that French bank Societe Generale had released a report that Ambrose Evans-Pritchard in the British Daily Telegraph dubbed the ‘Bear Case Report.’ This report advises the bank’s clients on how to prepare for the dollar tumbling much further, global equities crashing below March lows, property prices tumbling (remember that email I sent a week ago to QWR  members about the coming commercial real estate crash?) and oil falling below $50 per barrel.

The only solution seems to be for governments to inflate their way out of the problem. But, as was once famously said, inflation is like being pregnant – you can’t opt to be a little bit pregnant!

This was before the news that Dubai World asked for a 6 month break, admitting that they can’t keep up payments any more. Bearing in mind that failure to honour debt obligations is a crime punishable by prison in Dubai, it must have taken some courage, desperation or both for them to own up to that.

Then there was that weird ‘technical difficulty’ on the London Stock Market, which halted trading for a few hours. Now I’m not a conspiracy theorist at all, but that really had me suspecting something.

Oh, and just to take our minds off economic woes, swine flu is conveniently back on the agenda – with a huge jump in deaths in Europe this week. Which of course don’t have anything to do with the wintry weather.

The BBC reported that maybe eating garlic could prevent swine flu. The price of garlic has jumped 300% in China, so expect a global increase to filter through soon. Evil speculators are to blame of course. Maybe those same guys who read the SocGen report, that suggested investing in farm commodities?

Fortunatelyas I write this over the weekend I can see the funny side of things. When faced with apparent disasters, my rule of thumb is “will this matter in five years time?” And although I firmly believe things are going to get a lot worse before they get better, let’s put things in perspective. A private offshore banker from a small Swiss bank (one of the cantonal banks) told me the other day that her grandparents had lived through a real economic crisis – when they didn’t have any food to eat in Europe after the Second World War. For most people hit by the recession, the real net impact is that they will be buying cheaper Christmas presents this year.

Well I’ve rambled on a lot, but what can we learn from last week? I don’t think anything that happened that will be remembered in five weeks, never mind five years. If you want a hedge against inflation, buy gold. Do not buy paper or digital gold as it is most likely a scam. Buy real, physical, solid gold. Want to know how to buy physical gold offshore? Click here.

But if you are willing to be more aggressive, these turbulent times are generating so many new opportunities it’s just incredible. I am truly excited and optimistic about what is going on now making people think about pressing the reset button. If you are not happy with your life as it is, or simply your investment portfolio as it is, the message is loud and clear: you can do something about it! Start with The Q Wealth Report, and join us in Cancun in March for an intensive long weekend course on building offshore wealth!