In the past decade, crumbling mainstream investment markets have caused many investors to seek safe-haven assets amidst this contracting economy, and the majority of them have learned how to gold as their ultimate tool for profit and wealth preservation amidst “the worst financial crisis since the Great Depression.” This comes as no surprise, especially since the metal has increased in value more than 400% since 2001 while many mainstream investments lost more than 25% of their initial value as a result of large economic contractions. History has proven time and time again that when paperbacked assets lose value, wise investors learn how to gold as a means of preserving themselves with one of the world’s most recognized stores of wealth.
Learning how to gold is a lot easier than many investors think, and modern technology has made it a very simple diversification. When you do decide to purchase, it’s very important that you only diversify with physical possession bars and coins because riskier precious metal investments like gold stocks and exchange traded funds have proven to be just as volatile as traditional stocks and shares. Just like with most other investments, thorough research could lead you to success with gold investments, thus I have outlined a three-step plan below that could lead you on your way to success with the metal:
Research Gold Market = There are several different factors that affect the gold market on a daily basis, and understanding these factors is the first step to success with a precious metal diversification. The spot price is the base price of one-ounce of gold on commodities exchanges worldwide, and it is the most important factor because it is influenced by external economic factors ranging from the strength of the United States Dollar to investor sentiment about the economy, stocks, bonds and real estate. You can track this spot price on reputable websites like www.GoldPrice.net.
Research Gold Bars And Coins = When learning how to gold, it’s important to know that there are hundreds of different bars and coins that could benefit certain types of investment portfolios. All these products are split into two major categories; modern-day bullion and pre-1933 certified rare coins. Investors who purchase modern-day bullion typically seek short-term profit from their investment while investors who purchase certified rare coins typically seek long-term wealth preservation from their investment. An excellent award-winning resource that can help you learn more about these bars and coins is www.Gold-Investment.info.
Research The Best Dealers = There are literally hundreds of gold dealers scattered across the nation, some of the reputable but most of them not so reputable. Conducting background reputability checks is important because you always want to deal with companies that hold long-standing histories of excellent service and pricing. The Better Business Bureau website is an excellent resource because simply by inputting the name of a gold dealer, you can see their BBB rating as well as any comments and complaints they may have. Precious metal firms such as www.CertifiedGoldExchange.com have held A+ ratings with the BBB since 1992, thus making them one of the industry leaders in this flourishing market.
2007 marked the beginning of what has been commonly referred to as “the worst financial crisis since the Great Depression,” and this weakened economy has caused mayhem with mainstream investments like stocks, bonds and real estate. Newspapers, magazines and articles from various sectors have reported trillions of dollars lost with paperbacked assets as a result of major economic contractions. Between 2001 and 2008, the majority of mainstream investing markets spiraled downward, and during this same period the gold spot price increased more than 300%. Masses of wise American investors have begun looking for the ultimate safe-haven tool that could help them protect wealth and even profit, and what better protection than a gold investment?
For decades, investors who have owned a gold investment have been able to store their wealth while profiting from upward fluctuation with history’s most cherished precious metal. The reason that investors turn to a gold investment during troubling economic times is because the metal is considered to be an asset that holds true value, as opposed to paperbacked assets like stocks that are dependent on company strength as well as the overall strength of the United States Dollar. With inflation and deflation continuously threatening paperbacked assets and the United States Dollar, doesn’t it make sense to own gold as a backup plan in the event that the economy collapses? Just like with backup generators in the offices of major corporations, a gold investment backup could help you keep your lights on in the event that the economy gets much darker.
Skyrocketing gold investment demand has driven gold’s spot price to record highs, and increasing demand continues pushing the metal’s value even higher. Many market analysts, financial planners and institutional investors believe that gold may continue climbing similar to movement that was seen in the late 1970’s when the spot price increased more than 800% in two years. If this were to happen, wouldn’t you like to know that your hard-earned wealth could be safe from major losses, while at the same time profiting if spot prices reach projected levels?
When beginning a gold investment, it’s very important that you fully understand how the market works in to maximize profit and wealth preservation potential. A proven method for diversification success is working with experts that can guide you in the right direction. Explore your options with a gold investment today by researching the award-winning online tutorial at . When you are ready, contact one of our experts at www.CertifiedGoldExchange.com and let us guide you on the road to peace of mind with the security of gold in your hands.
Forward contracts do not have to conform to the standards of a particular exchange. The delivery date in the contract can be any date mutually convenient to the two parties. Usually, in forward contracts, a single delivery date is specified, whereas in futures contracts, there is a range of possible delivery dates. Forward contracts are not marked to market daily like futures contracts. The two parties contract to settle up on the specified delivery date. Whereas most futures contracts are closed out prior to delivery, most forward contracts do lead to delivery of the physical asset or to final settlement in cash.
FUTURE CONTRACTS:
A future contract is an agreement to a particular product at a particular price on a particular future date. Apparently, it looks similar to a forward contract. However in futures contract the defects of the forward contracts are removed. A futures contract is an instrument which has particular product as an underlying asset. The buyer of the futures agrees to the underlying asset on the specified date. Similarly, the seller of the futures agrees to sell the underlying asset on the specified date.
Future contract is a legally binding agreement to or sell the underlying security on a future date. Future contracts are the organized / standardized contracts in terms of quantity, quality (in case of commodities), delivery time and place for settlement on any date in future. The contract expires on a pre-specified date which is called the expiry date of the contract. On expiry, futures can be settled by delivery of the underlying assets or cash. Cash settlement entails paying / receiving the difference between the prices at which the contract was entered and the price of the underlying asset at the time of expiry of the contract. Further, in futures transactions there is no one to one transaction. All the transactions are routed through exchange and the exchange acts as a counter party to all the contracts i.e. if one of the parties fails to perform the other party would not suffer.
Forward Vs. Futures
Forwards
Futures
Private contract between two parties
Traded on an exchange
Not standardized
Standardized contract
Usually one specified delivery date
Range of delivery dates
Settled at end of contract
Settled daily
Delivery or final cash settlement usually takes place
Contract usually closed out prior to maturity
Types of Futures:
Index Futures:
Index Futures are futures whose value is based on the value of Index i.e. SENSEX in the case of BSE and NIFTY in the case of NSE. Index Futures were introduced for the first time in July 2000. The underlying asset in the case of Index Futures is Index itself. Index Futures work in the same manner as the commodity futures discussed above. However, since the underlying asset i.e. Index can not be delivered the settlement is always in the form of payment of differences in cash.
Specific Scrip Futures:
Futures on specific scrips (i.e., futures on shares of a particular company) were introduced in the market w.e.f., July 2001. The underlying asset in this case is the shares of a particular company. To begin with the settlement of specific scrip futures was cash settlement i.e. by way of payment of difference. However, gradually it would become compulsory to settle contracts by way of actual delivery of underlying shares. Thus futures contracts in the Indian Capital markets can be broadly divided in three categories as follows:
Index Futures
Specific Scrip Futures _ settlement in cash
Specific Scrip Futures – settlement by actual delivery, of underlying shares
Players in futures market
Issuer:
It is interesting to note that the futures are issued by no one. Although it may be futures on shares of a company, the company does not issue such futures. The company only issues shares which are traded in the market. Futures are written by the participants in the market.
Participants:
Participants in futures consist of all types of investors i.e. individuals, financial institutions, mutual funds, foreign institutional investors, banks etc. Since, the amount required to be invested is comparatively low (i.e., only margins) it is possible even for the small investors to participate in the market.
A general view prevailing amongst the investors is that the futures transactions are speculative transactions and various reports appearing in the media also give an impression that futures transactions are speculative. The then requirement for classifying a transaction as speculative transaction is that the transaction for purchase or of delivery is settled otherwise than by actual delivery or transfer of the commodity or the scrip.
OPTIONS
Option contract is a type of derivatives contract which gives the buyer/holder of the contract the right (but not the obligation) to /sell the underlying asset at a predetermined price within or at end of a specified period. The buyer/holder of the option, purchases the right from the seller/writer for a consideration which is called the premium. The seller/writer of an option is obligated to settle the option as per the terms of the contract when the buyer/holder exercises his right. The underlying asset could include securities, an index of prices of securities etc.
Option is a right but not an obligation to do something. The Options can be divided in two parts i.e. Call Option and Put Option. A Call Option is a right but not an obligation to the underlying asset at a predetermined price. A Put Option is a right but not an obligation to sell the underlying asset at a predetermined price. The person who buys the Option is called the buyer of the Option. The person who sells the Option i.e. the person who has agreed to perform or who takes up the obligation is called the seller of the Option.
Players in OPTIONS
Issuer: It is interesting to note that the options are issued by no one. Although it may be options on shares of a company, the company does not issue such options. The company only issues shares which are traded in the market. Options are written by the participants in the market.
Participants: Participants in options consists of all types of investors such as individuals, financial institutions, mutual funds, FIIs, banks, etc. Since the amount required to be invested is comparatively low, it is possible even for the small investors to participate in the market.
Utility of options market: It is widely used to hedge instruments and improves quality of market. Worldwide options form integral part of the capital markets and add depth to the market. Further, badlas are withdrawn from the Indian capital market and options are introduced as a sophisticated product.
SWAPS
Swaps are private agreements between two companies to exchange cash flows in the future according to a prearranged formula. They can be regarded as portfolio of forward contracts. The study of swaps is, therefore, a natural extension of the study of forward and futures contracts. In US the first swap contracts were negotiated in 1981. Since then, the market has grown very rapidly. Hundreds of billions of dollars of contracts are currently negotiated each year.
Dr.R.SRINIVASAN is a Post graduate in commerce and Management. He received his doctoral degree from Alagappa University in 1997. He is now Working as an ASSOCIATE PROFESSORin Post graduate and Research Department of Corporate Secretaryship at Bharathidasan Government College for Women (Autonomous), Pondicherry University, Puducherry.He currently teaches Accounting ,financial management and Research Methodology Subjects. Before Joining BGCW, he was teaching in SNR College, Coimbatore, Sindhi college, Chennai& T.S.Narayanasamy College, Chennai for eight years. He was with the industry for a short term at Salzar Electronics Pvt. Ltd, Coimbatore. He has about 20 years of teaching experience and having research experience of 15 years. His interests are in Accounting and finance, Capital Market, Quantitative Methods. He underwent the Faculty Development Programme at Indian Institute of Management Ahmedabad during 2000-01. He has presented 20 papers in national and international conferences and has published twenty papers in the areas of Finance and Human resource Management in National Journals. Co-authored a book titled, ‘Investors Protection, published by Raj Publications, New Delhi He has delivered lectures in contemporary finance topics at Pondicherry University. He is involved in consultancy projects for Godrej Saralee, Chennai in the areas of Statistical Applications. He has supervised a number of research projects in the area of corporate finance and Human Resource Management. He is the Board of examiner in corporate Secretaryship and Management for the past two decades.
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Their online store is one of the few offering 100% hand rolled cigars from Honduras, but what makes them truly exceptional is the type of tobacco included in the product. Each cigar contains the same tobacco leafs prized by the Mayans and discovered by Columbus hundreds of years ago. There is a reason this tobacco has withstood the test of time, and Jungle Smokes is honored to be part of that heritage.
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Finding a mutual fund that suits your needs can sometimes be tedious but once you get the right one, then you can have years of success and peace of mind. It is also important that you put the reason you want to invest and the kind of return you are expecting into consideration before committing yourself to this type of investment. The best mutual funds have the characteristics of low costs, steady returns and reliable fund managers whose actions are based on facts and logic.
These types of funds are actively managed by qualified professionals. It is also advisable that you analyze the past performance of the funds and the fund manager. It is important that when you are assessing a company that you connect the past performance to the current or past fund manager. This means that just because a fund has been doing well in the past and gets a new fund manager that it will continue with this good progress. You can also find information on the best mutual funds when they are tracked and rated by many organizations.
One of the well known organizations that rate mutual funds is Morning Star which rates funds using the star system. When a fund has five stars it means that it is in the category of the best mutual funds. The best mutual funds offer a variety of services that add value to their investors’ financial knowledge and are of great importance to them.
These are switching privileges, periodic investing plans, periodic investing plans etc. When looking for the best funds it is also important that you take your time and research carefully so that you can get one that is if you have a high tolerance for volatility or risk.
Mercy Maranga writes content on Finance and Finance Management. Visit her site here for more information on Mutual Funds and how to effectively invest your money.
It can be difficult sometimes to find a reliable and safe way of investing. This is because many people may not be fully aware of the options that they have available in the market. However, the best thing to do when you decide to invest is to ensure that you are equipped with the necessary and proper facts. It is important that you are fully aware of what your investment option entails so that you do not get any surprises along the way. Mutual funds are a popular investment option and have the advantages of professional management, convenience and liquidity. It is also vital that you understand that mutual funds are not entirely risk free. When you have the proper information, it is easier for you to make an informed decision and compare the different mutual funds so that you can get the right one for you. This will depend on your goals, the length of time you want to invest and your risk tolerance.
It is also essential that you also put funds charges, fees and expenses, the age and size of the fund, the fund’s risk and volatility into consideration. You can also compare funds by measuring them by their returns. This way you will be able to see how much the fund has gained over a certain period of time. The fund’s benchmark is also another way for you to compare mutual funds.
It will provide you with a standard for you to make your assessment. This will help you assess what the fund has made against what it should have earned. It is also advisable that you compare returns. When doing this, ensure that the time period is equal and also the product is similar as far as risk is concerned.
Mercy Maranga writes content on Finance and Finance Management. Visit her site here for more information on Mutual Funds and how to effectively invest your money.
One of the most popular ways to invest in real estate is to do rehabbing projects. Using this type of real estate investing, which is also known as fixing and flipping properties, to earn money is a dream-come-true for those people who are knowledgeable at handyman jobs. It is because they get to earn tons of cash and while doing the job they love the most.
To become a successful rehabber of fixer upper homes, there is a simple formula that you should always remember: all the repairs you made on the property should significantly raise its market value. However, there is more to rehabbing than refurbishing and beautifying an old house. While doing repairs on the investment property is very important, it is but a single aspect of an elaborate process.
Many real estate investors believe that they earn money the moment they sell the rehabbed property. Experts in the fix and flip business, however, believe otherwise. According to them, you gain profit when you the investment property. Therefore, you have to make sure that the house you will has marketability even before you fix it.
You can do this by obtaining fixer upper homes that have great location and make sure that you them at below the market price. You also have to make certain that your target selling price can be achieved once you compute repair costs and other expenses.
Having sufficient cash on hand is also an important aspect of rehabbing houses. You shouldn’t get ahead of yourself and expect to earn at least $100,000 without spending money up front for your bills. Always remember that the amount of money you possess will determine the type of you and the quality of repairs you make.
If you think the process of fixing and flipping properties is over once the renovations are done, think again. You have to sell the house, remember? Therefore, you need to have a sound marketing plan to catch the attention of buyers. Let the people know that you are selling a rehabbed property by running an ad on the newspaper or online, as well as by distributing flyers.
Although some rehabbers warn against advertising the property if the repairs are still incomplete, another good way to catch the attention of potential buyers is to prioritize the renovations on the property’s exterior. By fixing up the house’s walls, roofing, and siding, you are giving passersby a “subtle hint” that you are a rehabber and that you want them to contact you as soon as the repairs are done.
Indeed, being a successful rehabber is not just about putting up a good handyman job on a property. It requires research, a lot of preparation, and a great deal of patience and dedication on the investor’s part. Meanwhile, if you want to know more tips, you can log on to , a website that features top-notch real estate write-ups and videos.
We all dream about having a luxurious lifestyle. About earning mega bucks without having to invest a lot of time in what we do. Now, is that possible? Can there be such a thing called easy money? Of course there is, provided you make the right choice. FOREX trading is one of the most lucrative markets in terms of volatility and in terms of the potential to increase your earning at a real quick rate.
FOREX trading does require a lot of experience and analytical skills and it seemed to be out of bounds for the average Joe. However, as technology advanced, experts started designing systems with artificial intelligence which could predict the market trends and let users know when to invest. This made it a level playing ground. From time to time, there have been a lot of software that have been released to trade automatically. Most of them have failed as they were not complex enough to adjust its algorithms to the changing market trends.
FAP Turbo is one of solid player in the market currently which uses artificial intelligence to predict the market and has the ability to adjust it’s algorithms according to the changing market trends. The main purpose of FAP Turbo is to analyze the data and break up the FOREX market in a easy to read format which will help in making the right decision. With a fair amount of complexity, FAP Turbo is built to predict the market trends accurately (it’s been tested on thousands of live accounts and has had over 95% accuracy). It has multiple inbuilt strategies to help maximize profits. Unlike most other automated softwares, FAP Turbo is for people with a fair amount of experience in trading. This is because, the product has various options in the setting which needs to be utilized effectively in to maximize the benefits. This product is clearly not for beginners who have very little knowledge about currency trading.
In the end, you cannot become rich for nothing but you can become rich when you have some specialized skills or knowledge. Choosing the right tools and learning to use them effectively is the key. It’s not about working hard, it’s about working smart.
Is Fap Turbo Right For You? To Read An Extensive Review Of The Forex Autopilot program
Nov 4th, 2009 Precious Metals ETF have gone wild the past 2 weeks. Last week we saw gold and silver prices drop sharply as it shook out short term trader’s stop before breaking out and moving higher. Also there is a disconnect between the gold and the dollar.
Energy commodities like natural gas and crude oil are moving in opposite directions and look to be picking up speed. Natural gas is losing pressure and oil is on fire.
GLD ETF Trading – Pivot Trading Low Last week we had our pivot trading low generate another signal for gold. Trading pivot lows is a simple trading strategy. I call them low risk setups and take advantage of buying a stock, commodity or currency after a pullback to support and when a reversal candle is formed. This chart clearly shows when you are trading with the trend buying on the dips is generally a low risk play with great up side potential.
Gold Bull Market Pivot Trading Low
Precious Metals ETF Trading – Gold Bullion Takes Control This is a chart which shows the performance of gold stocks (red), silver bullion (blue) and gold bullion (green). As you can see the past 2 weeks while the market has been selling down precious metals stocks have been hit harder than silver and gold.
Because of the heavy selling in stocks recently the smart money had been going into commodities especially gold bullion. Gold stocks are a great play but this is telling us investors feel safer in physical bullion than stocks.
Gold is the most known precious metal and safe haven which is why it’s holding value better than silver and stocks. This week we are seeing gold become more valuable in several major currencies which means gold is actually making a real move higher.
Gold Bullion, Silver Bullion, Precious Metal Stocks
USO ETF Trading – Breakout & Bull Flag Crude oil has had some great breakouts this year and it looks like we are about to get another signal shortly. We had a breakout in Oct from the large pennant and are now flagging which is very bullish. We could see USO reach $50 in the next month or two.
Crude Oil Bull Market Breakout
UNG ETF Trading – Pivot Low or Waterfall Sell Off? Natural gas is at a crucial level for a higher low bounce or another massive panic sell off. Trading right now with UNG is a 50/50 shot so we will just have to wait and let things unfold more before taking any action.
Natural Gas Pivot Low Bear Market
The Stock Markets, Precious Metals & Energy Trading Conclusion: The market is starting to feel a little squirmy as it tries to find support. Small cap stocks continue to get crushed while blue chip (large cap) stocks are holding more of their value. Gold has broken higher this week while silver and precious metal stocks under perform their big sister Yellow Gold.
Crude oil is holding up nicely forming a 3 week bull flag and showing signs of life while natural gas continues to get hammered.
The market has been jumpy the past 2 weeks because market participants are very uneasy about the future direction of the US dollar.
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Chris Vermeulen is Founder of the popular trading site . There he shares his highly successful, low-risk trading method. Since 2001 Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets. Subscribers to his service depend on Chris’ uniquely consistent investment opportunities that carry exceptionally low risk and high return.
Reach Chris at: Chris[at]theGoildAndOilGuy[dot]com
The purpose of FOREX (Foreign Exchange trade) is to help international trade and commerce. It allows banks and institutions to and sell currencies.
The modern FOREX market began forming around the 1970’s when countries switched to floating exchange rates from fixed exchange rates (Bretton Woods Agreement). FOREX markets hold immense potential because of the sheer volume of trade. Average daily turnover of FOREX markets is estimated at around $3.98 trillion. And as such huge profit can be made out of this market. However this market is very demanding. This is because of the long working hours, volatility of the exchange rates and extreme liquidity of the market. This means an individual trading in this market would have to be alert almost all the time and keep track of all the factors that can affect currency. All these factors make trading in FOREX tedious and unprofitable for non institutional investors like us.
Not anymore. With the invention of FOREX Autopilot now even a layman can start making money out of the FOREX market. We can start from a capital as little as $50 and the upper limit is not defined though $2000-$5000 investment is generally recommended. With an astonishing success rate of around 90% or in worse case 80% this software is god’s gift. It ensures that we can say bye to those days where we have to remain glued to the monitor so that we don’t miss out on a big trade but since this is a robot and an efficient one at that it can work for us round the clock. The benefits do not end here, any person can start trading within minutes of installing it and generally there is some guarantee period so if you are not satisfied with the product you can always return it. To obtain maximum benefit out of it we should program it to operate on EUR/USD currency pair and at an interval of 1 minute.
As there are two sides of coin so is the case with Autopilot. The first one is the technical support this has some catching to do as right now support is provided using only emails and user forums. Another limitation is that it works only on MetaTrader4 platform.
Considering both the sides of the argument it can be easily seen that the benefits far outweigh the drawbacks and FAP is a winning proposition.
