In all candid intentions, acquiring huge profits from any risky investments offshore is always top in any of the investor’s agenda. But how this can be done is a question that plagues a lot of people who have always wanted to make a good share of the pie in tax-free offshore investments.
And for the ordinary investors, secrets are always hidden by the Wall Street financial mavericks because they think that secured profits from these international investments are exclusive to them. Sometimes, they don’t want to parttake on what possible investment instruments are ripe for the picking. Instead, they keep them to themselves for reasons only known to them or those they have built a sound business relationship for a long while.
But a smoke can’t be hidden forever. And there’s a lot of financial experts who have written so much about the pros and cons and the ins and outs of international investing. What matters most is how much time you need to spend in order to unlock those investment secrets in foreign markets.
In fact, many are confused as to where and what investment instruments they have to pick in order to earn for their money a sizable return-on investments. The risks are considerable threats to the consciousness of many investors and that’s why they hesitate to let go of their hard-earned cash unless they are sure enough on where their money is going and as to whether the market where their investment is going is safe enough for the taking.
A concrete manifestation on the impacts of the jittery domestic financial market was attributed to the fall of the dollar’s value. Comparatively, the US dollar shed off its value against stable foreign currencies such as the euro and other major European currencies for that matter.
As Ron Holland, a retired financial consultant and global advisor living in North Carolina, claimed in one of his articles that appeared in Real Estate and Offshore Investment Quarterly: "For most Americans, this is an invisible loss–you don’t notice it unless you travel abroad or import goods or services that are priced in terms of foreign currencies."
Even a lot of American students now studying in foreign countries have often complained over the way their US dollar allowances were reacting when compared against the purchasing value of the euro.
It is for this reason that many Americans have eventually resorted to whatever means they could to scout and make full use their investment potentials and putting them in a secured offshore basket at a required given time to mature. At home, there is no way that they could earn so much knowing how the US dollar fell to its ebb. But all hope is not lost among those who still believe that there is light at the end of the tunnel.
After the dollar declined, it was only a wise move for some of the American investors to seek for an offshore market that will secure their investments and allow them to earn reasonable profits by way of buying foreign currencies at any offshore banks at a given time. This is much easier and uncomplicated compared to other offshore investments that anyone can think of.
Of course, the offshore markets don’t run out of possible investments for foreign investors willing to park their hard-earned cash outside. For instance, buying American Depository Receipts (ADRs) through a domestic broker is one way of doing it in order to gain access to the most liquid foreign shares. But experts said only a handful of foreign shares are traded as ADRs.
What makes these things more complicated is that buying and selling of securities that are traded on foreign exchanges has become a nightmare for most investors. The dilemma rests on the U.S. brokers being ill-equipped to take custody of foreign securities, Holland added. "You may discover that the offshore security you want to buy isn’t available to U.S. investors at all…That’s a consequence of the laws and regulations enforced by the U.S. Securities and Exchange Commission, which prohibits issuers of unregistered securities from being marketed in the United States."
In this kind of financial dilemma, American investors can always hope for the best of their money. In connection with this, the Ireland-based The Sovereign Society has recommended to investors to purchase euro-denominated currency deposits (CDs). Accordingly, euro-denominated CDs are more appreciated because they can earn for investors interest rates of up to 4%, distributed fairly in a span of four years. And in the fourth year, the investor may just be too happy to get what he had aspired for in terms of profits.
Based on my research, most investors prefer the euro-denominated currency deposits is that because the euro is a stable currency. In fact, it has appreciated steadily against the U.S. dollar in the past few years until today. Holding it for a long time would even accummulate hefty profits when converted into the U.S. dollars at a certain period of say five years at the time of purchase. It was estimated that this kind of offshore investment could rake in profits for the investor four times in over a five-year period.
Like what the other financial market experts said, the euro currency could fluctuate against the U.S. dollar over time. However, there are other foreign currencies that need to be looked at, too, if only to diversify your offshore market investments.