Are you sick and tired of your low-paying job? Do you want to gain financial freedom? Do you want to try something new? If you answer yes to these three questions, then you might want to consider investing in real estate.
Despite all the negative news and media reports about the housing business amid the economic downturn, there is still big money to be made in real estate. In fact, recent government data showed an increase in home , proving that many real estate investors are still pocketing big profits. So if you are sick of taking orders from your boss, you should become a real estate investor yourself.
Investing in real estate mainly involves the purchase, ownership, management, and of properties for profit. There are three basic types of : , rehabbing homes, and flipping properties.
In the language of real estate investors, the term “wholesaling” basically refers to the act of placing a property under contract and then selling that contract to a buyer, who will close the deal. According to the experts in the business, being a wholesaler is risk-free. Because he doesn’t have to the property itself, an investor doesn’t have to risk spending a huge amount of money up front just to make profits.
When rehabbing houses, meanwhile, a real estate investor purchases an old property at a price below its market value and then renovates it to give the house a new look. Once the repairs are done, the rehabber sells the house at a higher price to recoup all the money he has spent on buying and refurbishing the property.
Flipping, on the other hand, involves the purchase and the of a property for profit. In this type of investing in real estate, an investor buys a property at a discounted price and then quickly sells or “flips” it at a slight marked up price.
Like what was mentioned earlier, real estate investing can help you gain financial freedom. By becoming an investor, you can be your own boss and set your working hours. You can also dictate the pace and the way you earn money. And most of all, it is entirely up to you if you want to succeed in the real estate business.
Meanwhile, if you want to know the secrets of successful real estate investors and the key to making big profits when investing in real estate, visit . The website features articles and videos that can boost your knowledge on real estate investing.
Rehab Real Estate is your perfect guide to the exciting and lucrative world of real estate investing. Whether you’re into rehabbing houses, property investment buying, or fix and flip, we’ll teach you everything you need to know so that you’ll earn MAXIMUM PROFIT in each and every deal.
Energy needs around the globe are still increasing, and a big fraction of the world needs oil and gas to keep things going. That is the reason why more and more people are finding it lucrative to invest in oil and gas. A limited few know about gas investment trade and how royalties work, while a big percentage is investing in the wrong niche.
Learning the ropes and particulars of oil and gas royalty investments will help you gain financial dominance as you benefit from ongoing takings for many years. So if you’re still searching for grounds as to what these royalty investments can do to your finances, the following advantages are definitely yours for the taking:
Streams of royalty income. And, the most important thing is you don’t have to exert extra effort just to get loads of takings. When you sell royalties, there are professionals who will act on your behalf especially on the negotiation, evaluation of property, and assessment process. If you’re not familiar with how things flow, data management and reports are likewise provided on a monthly basis.
A share of rights. Since it’s almost impossible for a lot of people to have a property with natural resources underneath, one way of gaining access and ownership is to mineral rights. On a buyer’s perspective, it becomes a means of investment that will serve a lot of use as the property will certainly grow in value for years. Apart from this, it will also help you achieve greater royalty opportunity in the future.
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In 3 of the past 4 market rebounds since 1982, equity gains slowed to a single digit pace in the 2nd year, after the initial rally. Now dividend stocks have extra appeal because they offer a tempting alternative to CDs which pay virtually no interest at all, and long term bonds which pay a little bit more but leave you at the mercy of inflation. Established value companies in stable industries have usually proven a better long-term investment. Before S&P cut Pfizer (PFE) ratings to ‘AA’ from ‘AAA’ on Oct 16, 2009, there were 5 companies with AAA credit ratings: Automated Data Processing (ADP), Johnson & Johnson (JNJ), ExxonMobil (XOM) and Microsoft (MSFT). In other words, 2 out of 5 were healthcare companies. Major HealthCare Companies I covered healthcare plans stocks such as UnitedHealth Group (UNH) in my Oct 27’s article. The following are major healthcare companies in other subsectors inside the health care sector, sorted by yield: Name (Symbol) Industry P/E Forward P/E Yield LILLY ELI CO (LLY) Drug Manu. N/A 8 5.2% BRISTOL-MYERS SQ (BMY) Drug Manu. 13 12 4.8% GLAXOSMITHKLINE (GSK) Drug Manu. 13 12 4.6% MERCK CO INC (MRK) Drug Manu. 10 10 4.2% SANOFI-AVENTIS SA (SNY) Drug Manu. N/A 8 3.6% PFIZER INC (PFE) Drug Manu. 15 8 3.4% JOHNSON AND JOHNS (JNJ) Drug Manu. 14 13 3.1% NOVARTIS AG ADS (NVS) Drug Manu. 17 13 3.1% ABBOTT LAB (ABT) Drug Manu. 15 13 2.9% ALCON INC (ACL) Medical Instru 23 20 2.6% ASTRAZENECA PLC ADS (AZN) Drug Manu. 9 8 2.5% BAXTER INTL INC (BAX) Medical Instru 15 13 1.9% MEDTRONIC INC (MDT) Medical Appliances 25 12 1.9% NOVO NORDISK A S (NVO) Drug Manu. 18 16 1.1% Teva Pharmaceutical (TEVA) Drug Manu. 48 12 0.9% Amgen Inc. (AMGN) Biotechnology 12 11 0.0% Gilead Sciences (GILD) Biotechnology 18 15 0.0% Average n/a 18 12 The top 8 companies in the above list yielding more than 3% are all major drug manufacturers. Some of them have single digit forward P/Es. H1N1 could benefit vaccine-makers including Novartis (NVS), Sanofi-aventis (SNY), and AstraZeneca (AZN). On November 25, U.S. health officials said that they are seeing a worrying pattern of serious bacterial infections in swine flu patients, mostly among younger adults not normally vulnerable to them. In addition to pending health care reform, a common problem facing big pharma is that there are patents which will expire between 2010 and 2012. However, this industry has been looking to fuel growth via acquisitions, including blockbuster deals. Pharmaceutical giants are also looking to pick up some biotech companies to boost their pipelines. Biotech Biotechnology probably offers the best level of innovation of any of the healthcare industries. Its P/E is low too. For example, Amgen (AMGN)’s P/E is only 12. Although my core holdings are boring blue chip dividend stocks, I also allocated a very small portion of my portfolio in promising small caps. China Biologic Products (CBPO.OB) is one of leading plasma-based biopharmaceutical companies in China. For the first nine months of 2009, its total revenue was $81 million, up 142% from 2008. It has $50 million in cash and low debt. However, traded on the OTC bulletin board, the stock price was extreme volatile. It also has derivative liabilities which might potentially affect its future income. Top 10 HealthCare ETFs ( by Net Assets) Fund Name (Ticker) Net Assets Earnings Growth Rate (ttm) Health Care Select Sector SPDR (XLV) 1.93B 8% Pharmaceutical HOLDRs (PPH) 1.52B 6% iShares Nasdaq Biotechnology (IBB) 1.35B 16% Biotech HOLDRs (BBH) 728M 13% iShares Dow Jones US Healthcare (IYH) 582M 9% Vanguard Health Care ETF (VHT) 538M 10% iShares S&P Global Healthcare (IXJ) 439M 9% SPDR S&P Biotech (XBI) 371M 21% iShares Dow Jones US Medical Devices (IHI) 269M 13% PowerShares Dynamic Biotech & Gen (PBE) 183M 17% Conclusion During the relatively benign 20-year period prior to 2008, most portfolios accumulated considerable short volatility biases, which looked very attractive to investors as a result of recent positive performance. It was this growing short volatility bias that created so much pain in the current downturn, according to CFA Digest November 2009 issue. Buying after a 40% decline is not a safe bet for investors. Markets may continue to fall and often have no trouble reaching a bottom at 75% below peak. Recent examples include 1989’s Japan Nikkei index, 2000’s NASDAQ, 2007’s China market and 2008’s oil/natural gas prices. So if investors think the environment will remain volatile, they should look for stocks with a lower sensitivity to volatility. Even if they make fewer profits for you on the way up, they lose a lot less on the way back down. With its forward average P/E of 12 and beta of 0.69, healthcare might be a great defensive sector. For those who need stable income, big pharmaceutical companies may be a good choice. Disclosure: I have long position on PPH and CBPO.OB. Data is from Yahoo Finance as of November 27, 2009. To learn more about how to invest in the stock market, please check out our stock trading course!
Hao Jin is a Chartered Financial Analyst (CFA) and has over 15 years experience as an investor. He graduated from SUNY Stony Brook’s Harriman School for Management and Policy in 1993. Check out his blog, PointFinancialAdvisor
Maybe it is human nature… maybe it is a lack of patience or discipline…or the new word courage…why do so many lose money when investing with legendary Commodity trading advisors? I have seen it over and over again. A commodity trading advisor has a good run…and then his assets under management swell. Then the inevitable happens the commodity trading advisor goes through a draw down or even a flat period and the investors jump ship. Assets under management plunge. Many investors lose money doing so. If only they had the discipline to stay with the manager…they could have compounded their money over and over again. Some disciplined commodity trading advisors look at these clients that jumped ship as a trade that did not work. They did not take it personally nor cared. The commodity trading advisors are compounding their own money and fully realize that in to be in this business, loses will happen, draw downs will happen and investors will only invest with the when they have positive results. The real key in investing with commodity trading advisors is to fully understand how the manager thinks…manages risk…and how he trades. One should not be full of unrealistic expectations… Nothing has to happen in commodity trading..in fact ..most of the time it does not. We only get these rare huge moves every couple of years.. But successful, disciplined commodity trading advisors make themselves available. They do not give up during a draw down. They keep on going..If you want to be a successful commodity trading investor you will need to also. Look at this manager.. Yes,Bill Dunn of Dunn Capital Management has some volatile results, he has compounded money since 1974. The results speak for themselves.. on the chart below from 1984 to 2009 approx 25 years on average Bill Dunn generated 14.47%. Putting this in another context… 100k turns into virtually $3,000,000. This is my point. One can compound their way to wealth by diversifying among commodity trading advisors and being patient and disciplined.
For the results of Dunn Capital since 1984…go here
Andrew Abraham A.Abraham@AngusJackson.com www.AJpartnersinc.com www.myinvestorsplace.com Futures trading involves risk. People can and do lose money
My name in Andrew Abraham. I have been investing in commodities and managed futures since 1994. I am a commodity trading advisor/co manager of a commodity pool who adheres to the philosophy of trend following. Trend following stresses a disciplined approach to commodity/ futures trading. Successful trend following and commodity futures investing requires patience, discipline and actively managing the risk. What sets us apart from other Commodity trading advisors and commodity pools is that we are not only concerned about the return on investment but how much risk you will have to tolerate to achieve your goals.
We all like to invest money in something that will give us high returns. Often we desire than our money will work for us instead of us working for money. But this is a rare occurrence. Now in such times when the economy seems to be financially shattered, people now want to settle for long-term investments, which are usually considered to be secure. But how long can you wait for returns? If you are someone who wants rapid returns on your investments, then online share trading will be your best bet.
In fact, online share trading enables you to explore the ever intriguing and tempting stock market. However, making money in the stock market is not as easy as it appears to be.
If you are a beginner, you will have to be well-versed with basics of online share trading. At times the learning curve becomes very steep for the novice traders. If you have the patience and the determination to stick to this market, then your efforts will definitely pay off at the end and you may be rewarded handsomely.
Now that you have made up your mind to enter into this trade, you need to register in an online share trading company. Well, that’s not as difficult as you may have thought of. You can easily get your registration done with the help of a company that is already engaged in this trade or you may take the help of a share broker.
In the initial stages, you may get in touch with a share broker and gain some experience in offline share trading. Once you are confident about the trade, then you will be able to understand well the intricacies and performance of the online trade. Following that you will also be able to enjoy all the lucrative gains out of the trade.
Put your thoughts at bay if an impossible thought has ever struck your mind. In fact, with the advent of internet, things are far easier now. Through internet you can not only educate yourself on all the aspects of online share trading but can start your own venture. Though this is a risky proposition, yet you can gain only when you are overly cautious about the fluctuations in the market and know when to play your cards. If your cards fall in the right place at the right time, then you may be fortunate enough to reap millions out of this trade.
Now coming to how the business takes place, the online purchase and of purchase determines the fortune of the trader. The purchase and takes place on a daily basis. It will take some time to get acquainted with the market but once you are able to study the movements, then you will be able to take your own decisions as to which shares you would like to put on and which ones to put on hold.
The media has more than often tagged online share trading as ‘easy money’ but when you ask any investor, you will know what this ‘easy money’ is all about. Making informed decisions should be your forte. The risk-reward principle works at every interval in this trade and if you are able to successfully scale them, then the blessings of ‘Fortune-God’ is always with you.
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Everyone knows the fact that Cuban cigars have proven to be by far the most coveted cigars, renown world-wide with regard to their smoothness as good as vivacious flavors. How do you communicate if exactly what you may have is really a matching or the echt factor? Very first, do specific that you purchase your ain cigars from a reputable company. Shopping for from your neighborhood tobacconist or possibly a trusty mail business enterprise could support you from pitchforking your capital over for a carton of mistaken cigars. Indeed, Cuban cigars are normally so valued that a lot of illicit agents have been known to hook bogus Cubans to naif cigar smokers.
When you have an opportunity to purchase a box of purported Cuban cigars, but have your doubts, act the time to analyze the box prior to getting it. A top quality cuban cigars will normally expense you in between to . Listed below are a couple of tips to help you spot the fakes from the existent Cuban stogie.
One of the most necessary thing to analyze could be the box. On the bottom of the box of cigars, it is better to unveil a heat stomp with the words Habanos. The heat stomp should be affected onto the bottom from the box. Fake Cuban cigar boxes frequently detect other techniques to form this label, like applying rubber stamps or paper labels. Make certain you besides get a factory code stomp in the bottom that is stomped in greenish, bluish or dark ink. This stomp will state you when and precisely where the cigars had been rolled.
Authentic Cuban cigars will incorporate a greenish and snowy warranty seal on the leaved front side with the box. The seal will incorporate an insignia that features an image of a shield and besides a hat. On the upper arrant hand corner of the box, it is better to unveil a snowy sticker that is put diagonally jointly with the word Habanos printed on it. Even when the cigars are the existent elements, their superscript might have suffered in transport. If you are inside the market for Cohiba, Trinidad, or Qdorsay brand cigars, cognize that all reliable Cohiba’s will incorporate the greenish and snowy warranty seal on the better hand side of the box.
The total appearance from the box ought to be neat and clear. If the box seems damaged, smeared, frayed, or tagged, remain off from it. If the color from the box is muffled, don’t put in it.
The bands on every one of the cigars should truly besides be indistinguishable, and ought to be arranged in that they face the same direction. The Montecristo brand has made some nonaged change to its bands – the paper is nowadays a glistening gloss corresponding to the bands of most of the other significant labels, alternatively of the older apparent matte complete. And, a hook has been added to the edge of the flower symbol.
If let, test the cigars away by pressing downwards on them. Really experience along the consummate length of every cigar, checking for delicate or hard spots. The cigars should experience firm but fictile. When you can unfastened the box, act the time to smell the tobacco. Cuban cigars will have a bass, fat aroma, apparent to given cigar aficionados. If the smell is away, or very watery, possibilities are you lean not to exhibit a box of reliable Cuban cigars in your hands. The cigars ought to be confronting the indistinguishable way, plus the top row could perchance look somewhat flattened. The caps on every one of the cigars necessitate to look indistinguishable, as good as the foot of every cigar should be manicure clear.
Fake cigars expense manufacturers millions of dollars each year so it truly is indispensable to report bogus cigars to authorities as soon as potential. If you’ve bought a low-toned-priced cigar from your nearby corner shop, possibilities are, they are bogus. Ask your vendor precisely where they get their cigars from.
In case you’re involved to evaluate without cost then you definately have to go through every last words of this excellent site. You are going to learn to acquire top quality ecigarette and how you can find them for superior well being.
Starting up a new hobby can be intimidating. Going golfing for the first time with a bunch of guys who have been doing it for years can make a beginner feel self-conscious about his lack of prowess on the links. People just learning to play guitar will go for years refusing to play in front of others. Even someone learning to cook might be embarrassed to share a less than savory meal with his family.
Some people might not consider smoking cigars a hobby, but it certainly is a pastime and it has its own intricacies just like anything else. There are traditions and faux pas when it comes to smoking cigars that any old puffer at the country club will notice and call you out on in a heartbeat.
Good-natured as the ribbing may be, it can’t hurt to brush up on some cigar “do’s and don’ts” before you have a cigar among the aficionados. Included are some suggestions for classy cigars and accessories that will show off your sense of refinement and good taste.
1. It is not a race. Smoking a cigar should be a leisure activity. The best way to start is to smoke as if it is no big deal. Take your time and enjoy it.
The Ashton Magnum is a smooth and creamy cigar that is perfect for new smokers. The aroma and flavor is remarkably consistent so you won’t ever get a bad draw. Ashton Magnums are made from Dominican leaves and shade-grown Connecticut wrappers. It is truly a cigar to be savored.
2. Trim the end of your cigar with a cigar cutter. Don’t try to bite it off with your teeth. This may look cool in the movies but it will just leave you with an unsightly and decidedly uncouth mouthful of tobacco.
The Double Blade Stainless Round Cigar Cutter from Orleans is an inexpensive yet fully functional cigar cutter. In other words, it is perfect for beginners. It works with a dual-blade guillotine action, which ensures a shred-free cut. It is housed in a durable stainless steel case for a long lifespan.
3. Don’t grind out a cigar in an ashtray. Let it go out on its own. This is a handy technique for being able to re-light a cigar later on. It is also polite to not leave the smudged out remains of tobacco scattered around in an ashtray.
In your own home, it is also nice to have a relatively clean ashtray. The Flor De Gonzalez Ashtray is made of simple black porcelain with the company’s logo in the center. It is square with resting places for your cigar in all four corners.
4. If there is less than a quarter left, let it go out in an ashtray. When a cigar starts to get that short, it will begin to lose its flavor. Nothing gold can stay. When it gets to the ¼ mark, it is time to let it go.
Another practical and stylish ashtray is the Hexagon Crystal Cigar Ashtray from Orleans. It looks incredibly luxurious for its modest price. It has wide stirrups (that’s where the cigar rests) to accommodate bigger cigars and a deep bowl for plenty of ash.
5. Don’t show off. Nothing screams amateur more than someone who makes a big deal out of smoking a cigar. Cigar holders and fancy smoking techniques are the antithesis of the cool guy casually smoking a cigar. You are allowed to blow smoke rings though. That’s a cool trick that’s not overtly flashy.
The best way to look natural smoking a cigar is to find one that you enjoy. In the beginning, it is best to start with a milder cigar and work your way up to fuller flavors. The Montecristo #1 is a legendary Cuban-inspired cigar that is made in the Dominican Republic.
6. Don’t chew on it. You are not Peter Parker’s grizzled boss at the newspaper. You are not a grunt in World War II. Unless you are being shot at or trying to ruin Spider-Man’s good name, chewing on a cigar is just plain gross.
Fine cigars can be works of art and the Griffin’s Robusto Natural is not something that you chomp away at. It has a rich and mild taste that smokers of every level can enjoy.
7. Don’t ask for a light. Seriously, you are a cigar smoker now. You should be carrying your own lighter around. In the worst case scenario, ask the bartender for a pack of matches.
The refillable Xikar EX Windproof Flame Cigar Lighter is far more practical than it sounds. It looks good and is affordable without appearing cheap or flashy. It is a functional, fantastic lighter that gets your cigar lit. What else could you want?
8. Don’t be afraid to let it go out and re-light it later. If you have spent some money on a nice cigar, there is no need to smoke it all at once and no need to waste it. Just scrape the ash off and rotate it over a flame for a moment to catch it again.
The Davidoff Millienium Churchill is a full-bodied, hearty, Dominican cigar that you won’t want to let go to waste. These cigars are top-notch and have a complex blend of aromas and flavors. Don’t be afraid to let it go out and enjoy the rest later.
9. Take your time warming up the end before you light it. This prevents you from charring the tobacco.
The Vector Vulcan Triple Flame shoots out a powerful trident flame that will allow you to perfectly light your cigar without over-toasting it.
10. Don’t smoke one after another. You are not chain smoking cigarettes here. Cigars are meant to be savored. Take your time and enjoy it. When it’s done, it’s done. Get on with your life for a while before having another.
If you find yourself enjoying your new pastime of smoking cigars, you are going to want to eventually invest in a humidor to keep them fresh. The Capri Humidor is a lovely, affordable way to keep your cigars tasting fresh for a long time.
Smoking cigars isn’t like smoking cigarettes. It is a hobby, not a habit. It is the difference between enjoying a fine glass of wine and slamming whiskey before noon. Take to heart these tips and smoke in moderation and you will be on your way in no time.
William Patterson is a freelance writer who writes about luxury items such
If you’ve paid much attention to the news lately, you’ll have noticed that gold is a hot topic, maybe the hottest. Its spectacular rise in price has taken many by surprise, but for those in the know, it’s perfectly natural. So why are so many investors flocking to gold bullion?
The fact is that gold is the ultimate safe haven for investors. When people lose faith in paper money and conventional investments such as stocks and bonds, it’s to gold they flock. If you factor in gold’s limited supply and the demand from industry and jewellery makers to gold bullion, you’ll understand why pundits say the only way for gold is up. So how can you take advantage of the amazing gold market?
The fact is you have a wide range of choices when it comes to taking advantage of gold. Here’s a look at your options. We can separate them into type main types – the first is where you own your wealth on paper and the second is where you actually take possession of the yellow metal.
One popular way to take advantage of the demand for gold is to stocks in mining companies. Obviously if they’re mining more gold, their earnings are up and so are your dividends as well as the price of the stock. The problem is knowing which companies to invest in.
Another option is through the use of exchange traded funds (ETF). These represent physical gold bullion held in trust in bank vaults. These can only be traded during stock market hours and there’s a storage charge for the gold.
Then there’s digital gold currency or e-gold which is becoming increasingly popular. The problem is that there are no specific financial regulations for this product. And as the dealers are not banks, they don’t have to comply with banking regulations.
Next, you can invest in via Self-Invested Personal Pensions (SIPPs). These are a new type of personal pension plan that hold investments until you retire and allow you to manage their own fund by investing in asset classes of their choice. One benefit is that you can claim up to 40% income tax back depending on your income tax band. You’re allowed to hold investment grade gold in a SIPP in the form of a bar, or of a wafer, of a weight accepted by the bullion markets. It must be stored with a secure third party and you can’t take possession.
Finally there are gold options and gold futures. To deal in these, you have to handle a complex, fast-moving market. You need to be a hands-on investor and it’s not for those who can’t handle risk and uncertainty. Better leave this one to the professionals.
Now we’ll look at personally-owned gold investments. Essentially you have the choice of jewellery, coins and gold bars.
Jewellery makes for wonderful keeps sakes and souvenirs but the cost of craftsmanship and design makes it a poor investment vehicle. In addition, pure gold is too soft for most jewellery so some alloy is used. This means when you come to sell your gold jewellery, it will have to be assayed which adds to transaction costs.
Another popular way to invest in gold is through coins like , the American gold eagle or the Canadian coins. While these make fine keepsakes and have a definite value, they’re not efficient investment vehicles owing partly to the costs of workmanship.
Finally, you can gold bullion bars. Here you’re acquiring investment grade gold at the spot price. This is the most cost effective way to invest in gold. In the UK, you can online for next day postal delivery. And when it comes to sell, the market is extremely liquid. What’s more, buying investment grade gold bullion for investment is stamp duty free and tax free (VAT exempt) in the UK and EU due to the EU Gold Directive of 2000.
Buying gold bullion was long a difficult business and it was hard to get clear information. The internet has changed all that, brought transparency to the proceedings, and reduced transaction costs and hidden fees.
Buying gold and silver bullion online for UK home delivery is now a straightforward procedure. Just visit the website of a reputable online bullion dealer, peruse the offerings and place your . Your bullion will arrive in a day or two by insured .
Michiel Van Kets writes articles for Bullion by Post which is part of Jewellery Quarter Bullion Limited, the company offers private UK investors the opportunity to gold bullion bars at trade prices. All fine silver and <a rel="nofollow" target="_blank" href="https:// ” title=”gold bars”>gold bars are brand new and manufactured by London Bullion Market Association approved refiners. The company provides the lowest margins in the UK, <a rel="nofollow" target="_blank" href="https:// ” title=” gold bullion”> gold bullion bars at real time spot based pricing and real-time stock availability.
Gold prices are soaring these years and the interest in learning how to invest in gold has never been higher. That’s why I decided to write this article with the goal of helping people to investing in gold safely and profitably. If you care about the security of you and your family’s savings in the coming years of inflation and economic depression, then you should know about the position of gold as a safe storage of value. I figure, if you are reading this article, then that’s probably what is on your mind.
This article can’t possibly be taken for definitive advice. Rather, it should be seen as an introduction on how to invest in gold.
Gold prices have skyrocketed over the last decade. In fact the rise has been nothing short of extraordinary. One ounce of gold in 2001 was priced at $270, now in November 2009 the same ounce of gold stands at $1170!
In other words, gold prices have gone up 5x times in less than 9 years! That’s a remarkable growth and there are very good reasons for why you should care, if you want to keep your money safe and invested in something profitable for you and your families sake.
Why is the price of gold so important? Regardless of what your bank may be telling you, gold is one of the most important storage of value that we have. Gold has been used as the defacto currency for thousands of years along with silver because of its indestructible qualities and its beauty. Gold is in fact, the only really safe storage of value that has been tested over and over trough time and kept its position.
Fiat currency, i.e. paper money, such as the US Dollar has no inherent value besides the trust that the holder has in the issuer. This trust is rapidly dwindling. The best indicator of this is actually gold price. Gold has historically acted as an anti-dollar indicator. When the US Dollar goes up in price then the price of gold goes down and when the US Dollar goes down in price of gold goes up. What does it then tell you that gold has quadrupled in price since 2001? That’s right; the trust in the US Dollar has plummeted.
It is in fact highly likely that the worst is yet to come. Several economists and politicians such as Congressman Ron Paul and hedge fund owner and financial expert Peter Schiff (both frequent guests on television), predict that the dollar will ultimately collapse as a result of years of irresponsible spending and monetary policy of the US government and Federal Reserve. But all this is far into the future, right? Wrong! The popular expression used by economics is ‘the long run’; well guess what, the long run has finally arrived. The US Dollar may not exist in as little as 5 years. That’s a very real possibility, but one that the government and particularly the FED does everything they can to suppress to the public. Like the band playing at Titanic, they are determined to go down with the ship.
If you don’t want to be forced to exchange your then worthless US Dollars into the new Amero (picture below, this is a real currency ready to replace the dollar), at 100 to 1, then you should look into stocking up on gold. I hope this website can serve to help guide you in the right direction. Take a look at the links in the left sidebar for more info. Again, if you are ready to invest in gold now, and want to learn how to both profit and keep your savings from the future, then I highly recommend you get Doug Eberhardts book , it’s very much worth the pricetag, trust me, you will be way ahead of what any 22 year old – fresh out of college – bank advisor can tell you.
There is no doubt that, putting your money on stock is one of the best investments. But when should you invest on stocks? Yeah, this a good question. Let me give you the answer for this.
I would always recommend a normal person who is busy with his own profession and invest in stock if he has some extra cash, to put his money on stocks if he doesn’t need that for the next five years. I always recommend only people who are totally depending on stock trading to make short term investment because, they look for quick returns. The major disadvantage in short-term investment is that you cannot see huge profit.
When you invest on stock for a longer period the return you can see is something unimaginable. I have even seen people you have got double or triple the money they have invested. That’s the power of long-term investment.
I don’t say that you will not get any profit in short-term stock investment. If you have made an intelligent investment and if luck is in your favor, you can make some good money from short-term stock investment.
If you have a sum of $5000 and you don’t need it for a while, just invest it on stocks. Choose a company which you think will perform well on the long run and go for it. If it is a fresh issue that will be excellent, because you can the shares you desire for less. But you should be very confident of the company that it will perform well for the next 10 or 20 years after which you need the money back. The company may not be doing well now but there must be scope for improvement. So take some time in choosing the best company’s stock and make a wise investment.