You want to diversify where your savings are deposited? How much should you invest in gold? Should you buy this and take delivery?
Here I offer 5 tips for the new Investor in this precious metal.
1. How much should I invest?
This is a personal decision, but most commentators would recommend anything from 5 – 25% of your wealth should be in gold. It depends on how ‘bullish’ you are. This metal is an insurance for the bad times and it will never go to zero in value. Many other investments have that possibility.
2. How much bullion should be in my possession and how much in a vault?
It is sensible to have some physical bullion in your possession. The ratio is yours to decide. Small bars and coins are the best option. You can buy small tradable pieces (or coins). Always buy pure 9999 coins.
For bullion storage try some of the better known gold and silver bullion companies. Make sure the company matches your investment with the actual physical gold.
3. Where do I store my physical bullion?
Most people buy a safe and install it in a secure place in their home. Others put it into Bank Deposit boxes. Or you can split between the two. With some companies you can opt to store your pieces in a secure vault in Switzerland. Continue reading “Investing in Gold For Beginners”
Investing in “green” companies has become popular as people have become more aware of environmental issues such as peak oil and global warming. But just as investing in “dot coms” during the 90s was the trend of the times, “green” is also a trend and should not be taken as an indicator of guaranteed profits. In fact, investing in “green” companies can be quite risky due to under-capitalization and lack of operating history due to their start-up status. But you can reduce the risk by investing in established companies that are strategically adding green methods and systems to their existing business models. Here are a few industries to consider.
Existing energy companies across the globe are researching and developing alternative fuels. All of the major oil companies are expanding into wind, solar and geothermal energy systems. And local utility companies across the United States are already introducing wind and solar power options to their customers. As many states make tax credits available to residents for installing solar panels, local utility companies are creating energy buy-back programs that should be effective in increasing profitability. Continue reading “Green Investing Strategies”
In today’s turbulent economy, one thing is for certain, gold coins are a good investment. Since the days of the ancients, gold has been used to bolster economies, and now you can do the same for your coin portfolio. By having gold coins as part of your portfolio, you are assured the overall value of your collection will increase as the price of gold increases. Precious metal coins can be purchased with ease these days, as they are available on the internet. Gone are the days where you would have to find a reputable coin shop.
Simply by going on eBay you can find a vast number of gold coins. Some of the more popular gold coins are American gold quarter eagle, eagles, and double eagles. Of course, the most popular of those is the St. Gauden’s Double Eagle, which depending on the dates, can fetch up anywhere between, $1000-$20000. A St. Gaudens Double Eagle from 1933 sold for a record $7.5 million dollars in 2002, the highest price ever paid for a coin.
Here is a list of the top 10 reasons to invest in gold coins:
1. Coins is Liquid, remember, bullion is Liquid. You can sell you precious metal coins pretty much at any time and anywhere and get cash.
2. You a virtually assured a profit. As an investment, gold continues to increase in value. In January, 2004 your were paying about $400 per ounce, in 2008 your were paying about $900 per ounce, simply a great investment. Furthermore, coins can become scarce, especially older coins from the 18th and 19th centuries. Continue reading “Investing in Gold Coins”
Most of us are looking at the social security system and have been notified already that full benefits will not be available to us until sometime significantly past the 65 years old benchmark. Some of us are looking dubiously at the likelihood of ever getting a social security benefit based on the baby boomer generation reaching retirement age. Remember one thing……it’s never too late to start saving.
Saving for retirement has some tax advantages. In lower income situations, there is a retirement savings credit. For some people they can obtain a “match” of their contributions to a certain % of the monies they save. Look at this “match” as free money. You get it for doing something that you would have done anyway. If you have a matching situation in your 401(k) or profit sharing plan, if you don’t participate, you are passing up this “free money” opportunity. Additionally, you may deduct an IRA contribution to a traditional IRA investment account if certain criteria are met. Continue reading “Saving for Retirement”
Right now you’re probably thinking that gold bullion investing is something best left to the pros. Yes, the majority of traders making noise are professional investors. But there are some easy ways to get into the bullion market, and gold could be a good investment for you. Of all things to invest in, gold is probably one of the most liquid investments. And much unlike many of the other commodities, it is literally traded 24 hours a day everywhere in the world. This means you can buy and sell gold in about any country.
Mom always said to not put all your eggs in one basket, and this is why gold should form the foundation in your overall investment portfolio. If you have only paper in your portfolio, know that gold tends to move in the opposite direction of paper investments. It really stands out as a diversifier. With your stocks, bonds and cash, gold can help offset fluctuations in the market. There are a lot of financial advisers that recommend having 5 to 10 percent of gold in their portfolio.
A real good way to get into the gold bullion market is by investing in the American Eagle. This coin is the only bullion coin whose weight, content, and purity are backed by the United States government. Think of the confidence you can have buying them. American Eagle gold coins require no assaying and they can be converted to cash at any moment. Simple to keep track of, American Eagles are tied to the spot gold price, plus a small premium to cover mintage and distribution. Continue reading “Easy Gold Bullion Investing”
Day trading is a mugs game – in FOREX currency markets, traders who make day trades instead of following the long-term trends, are making a serious mistake – risk/reward is terrible by comparison.
The Internet is full of brokers and vendors encouraging traders to day trade – and offering “sure fire” day trading systems – which is no surprise, as they mostly have a vested interest – they are making more commission!
Don’t get sucked in by the hype surrounding currency day trading.
You make the big money from the big trends – it’s the big trends that yield the big profits.
There are several day trading FOREX myths, and here are the most common ones: Continue reading “FOREX Day Trading – Do it and Lose Your Money Quickly!”
Most people live a day at a time and do not give much importance to the future and don’t even have a clue of how they will handle the future past their jobs. This kind of lifestyle is very bad and could end up bringing lots of problems later for people who were not keen enough to secure their future.
There are several pension plans and retirement plans that help people secure the future to make sure that even after they leave work, they will have a steady cash flow that will see them through the unknown times of the future which can be quite unpredictable. Failure to getting into a scheme that will benefit you later can leave you more of a beggar and a burden to the people closest to you.
Pension plans are related to the employment one has and therefore there is no way you can have your own plan. The income and years of service to a certain employer is what determines the pension benefits one will receive once retired. Unlike retirement plans where one has to contribute, it is the employer who contributes for a pension plan which includes the projections of the income in question to secure the employees benefits. Although these plans are slowly being ignored, there are companies still working with them especially union and government institutions. This kind of a plan is very important as it helps employees survive harsh times that may come when they finally retire and do not have any means of income and probably have nobody to help them out. Continue reading “The Importance of Pension Plans and Retirement Programs”
Most new traders tend to focus just about all their time and energy on finding nearly perfect “setups”, but trade setups, even very good ones, are *not* the key to successful trading. It’s the *way* you trade your setups that keeps your losses smaller than your gains. And this is the single most essential key to trading success. To me, the process of limiting losses is more than just money management…it is survival.
I can’t give you a list of mechanical survival rules that will take the place of experience and make you a successful trader overnight, but if you stick to the following principles in your trading, you’ll be on track. You’ll be doing just about the opposite of the crowd, and you’ll eventually learn to limit your losses. Limiting your losses is the only way I know to make money in this business.
The following guidelines will sound radical, but they have guided me in making my living from trading for many years. Continue reading “Day Trading Success- The Key Is Survival”
1. How to Treat Gap Openings
A gap up or gap down open is an emotional move, and it often will reverse course and turn in to “trap open”. Gaps that are less than 4 points on the SP Future tend to get filled in the same day, especially Tuesday through Thursday. Turns will occur within 20 to 40 minutes after the open. A trader must be on the lookout for a reversal as soon as early momentum is lost.
A gap into a good support /resistance zone is almost always a good “fade” – with stops no more than 1 point on other side of the support /resistance zone.
(A “fade” is simply entering a position opposite of the direction of the gap. If the market gapped down, a “fade” would be entering
a long position (buying) in to the selloff.) Continue reading “5 Day Trading Tips for Success”
Investing and Trading are not the same thing. The returns you seek, the length of time it takes to achieve those returns, the amount of risk one is prepared to take, and the commitment one can make to monitor the investments dictate the strategy of whether to invest or trade.
Investing is holding an asset for a longer term, expecting it to increase in value. The most common example is investing in equity mutual funds through a retirement plan. Many of these funds are held for years and are expected to show a substantial
appreciation over the long term.
You can also invest in individual stocks and hold them for 6 to 18 months or longer, sometimes much longer. This is referred to as the “buy and hold” strategy. Continue reading “The Difference Between Investing and Trading”