My Two Cents...
HYIP's (or High-Yield Investment Programs) are internet-based programs where the investor (that would be me or you) only needs an internet-based payment processor (such as an E-Gold or E-Bullion account) and money to invest into the HYIP through your E-Gold (or E-Bullion or whatever) account. You then would take that money of yours, invest it into the HYIP program, and let them do all of the "growth" for you up to the given "payday" date. Then, on "payday", they pay the principal (original invested amount), plus the gained interest (the money you've earned on your principal through their investing strategies) back to your E-Gold account and you can choose to do it all over again or not.
They are a good idea at first but it's the reality of them that is quite unfortunate. New HYIP's are being registered all of the time, by scammers usually. I say "usually", because easily 90%+ (don't quote me on that percentage figure, of course, as I am simply giving an idea as to how many of those HYIP programs out there are most likely fraudulent) are created by scammers (con artists, experts of deception, etc.) where the user deposits the money with them, expecting them to invest it and make it grow - then, when "payday" comes...nothing.
Now allow me to explain how the majority of HYIP scams work...
It's very simple; they get a large-enough user base who are giving them the money to "invest" (a.k.a. "put into their pocket"), and they then use this pool of money to provide staggered payouts to the investors, to make it look as if they have, in fact, made the money themselves - where in reality, they are just using the people's joining fees to pay back other users. That's the illusion they create until the day comes where they gather a large-enough pool of money to their liking, cease the payouts and close-up shop. Lovely strategy, isn't it? Just for clarity's sake, there are two types of HYIP programs you can join:
-The "Manual Payout"
Of the two, the "Automatic Payout" is the least-recommended (by me anyways) because it provides you with the least amount of control over your payouts - simply because you are relying on them to do it for you. However, as long as it is a scam, either type doesn't really matter in the end.
For your entertainment, I'll provide you with a list of some of the failed HYIP programs I've been involved with before I wizened-up and stopped participating in them:
- GPEH (Get Paid Every Hour)
- Immortal Trade (love the name - don't you? By the way, "Immortal" Trade lasted 127 days to the best of my knowledge )
Lastly, regarding HYIP's, the HYIP Review sites out there that people tend to rely on to provide them with honest reviews of the HYIP programs being offered, can sometimes be just as fraudulent and biased as the HYIP programs they promote. Don't forget, just because they are a review site, doesn't mean they will steer you in the right direction - after all, many are just referral sites that get paid by the HYIP sites they promote, to refer people to the HYIP programs!
What does this boil down to, you ask? When confronted with an "HYIP opportunity", DO YOUR RESEARCH!