How to Capitalize on Growing Silver Prices

Posted by Deb | Day Trading Journey,Guest Post,Investments | Tuesday 23 August 2016 11:59 pm

SilverInvesting in silver is like any other investment. There are always risks, but there is also that potential to earn money. There is no real secret to succeeding in this kind of business venture. However, it pays to be informed and learn the correct investing practices that can help the investment succeed.
Silver or Gold?

Silver is known as the poor man’s gold. Like gold it is a high risk investment, but the investor stands to gain a lot if the silver is invested wisely. Much like gold, silver prices are steadily on the rise. But unlike gold, silver is easier to attain since it is not as expensive. So an investor with limited resources can make use of this commodity to make his investment balanced and safer at a lesser cost.

Higher Potential Rewards

In a market where share prices are rising or are expected to rise, there is a higher increase of value in silver compared to gold. This may be because of factors like supply and demand and volume of the commodity being traded. So a good thing to note is when the market is bullish or rising, then it would be a good idea to put money on silver rather than gold.

The Demand for Silver

Silver is a metal that has many medical and industrial applications and people are finding new uses for this precious metal every day. It is used in computers, laptops, cell phones and other devices. Not only that, it is used in the medical field because of its anti-microbial properties. This is silver that is not returned to the stockpiles. This will eventually increase the demand for this metal and will lead to higher prices as the demand gradually increases.
Silver as a Commodity

Like its more expensive counterpart, silver is a fixed value commodity. The price generally remains the same except in certain circumstances where there is a possibility for the value to increase. This makes it a lesser risk when trading, especially in places where there is political unrest. Silver, like gold can be used as a currency without fear of losing its value in such a delicate situation. The value of silver will remain the same.

Silver CoinsKnow when to buy and sell

Like all items in the stock market, silver prices can and will fluctuate. The secret is buying when the price is low and sell when the price is high. One has to consider that there are certain fees to pay when dealing with silver so it would be a good idea to find out when the price is at its lowest and when it is at a high enough prices for the investor to earn a profit after the fees.

Trading silver is not an easy task. The market is also unpredictable, so it will be hard to guess when to jump in and when to get out. Silver may be a better investment than gold, but investing

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What Can We Expect for the US Dollar, Gold and Oil in the Year 2015?

Posted by Deb | Guest Post,Investments | Monday 15 June 2015 8:28 pm

This last year, 2014, will undoubtedly take its place in the history. During 2014, risks had been growing around Ukraine and the Middle East. One of the main events of the year was the collapse of oil prices. In June, 2014 barrel costed about 115$, but in the last days of the year quotes slumped to  56$.

What Can we expect for the year 2015?

Oil market

The main reasons for the oil prices collapse in 2014 were:

  • Increase of hydrocarbons production in the USA from 9.8 to 11.5 mln barrels per day;
  • Recession in countries of the European Union led to decrease in consumption and prices of hydrocarbons;
  • Growth of supply in Iran planning to increase production twice and Libya’s return to the market;
  • Technological factor: improvement of technology of production and decrease of prime cost as the result.

Currently, one can witness a disproportion between demand and supply: Every  day,  the level of oil production exceeds the market  demand by 600-700 thousand of barrels.

Analytics of the US investment banks assume that sometime during the first two quarters of 2015 year this index can grow up to 1.25 mln barrels per day. This factor will put a strong pressure on oil quotations,  so that we may see  again the low values  of 2008, when the  cost of Brent was $36 per barrel.

US dollar

The main global currency was boosted by the growth of the US economy which was growing with the fastest pace of the last 11 years. The US department of commerce revised its GDP estimation and defined it up to 5% per annum. Such estimation was justified by a higher consumer demand  and expenses of business. It was the fastest pace since 2003. It had been reported earlier that US economy grew for 3.9%.

This intensive growth in 2014 lays a solid foundation for 2015 and we can expect that the US currency will be consolidated against its major competitors.

Gold

Finally,  let’s talk about gold. Since there is no inflation risk in the USA – on the contrary, deflation presses Europe - there is no ground for traders to invest in gold: savings are not depreciated. This can make the precious metals less popular and quotes of gold may get to $1100 per ounce.

Confident growth of the US economy will support global markets through 2015, whereas low oil prices will have a positive effect for the economic growth in general.

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Money Matters: Mutual Funds For Long Term Investment Could Mean A Financially Secure Future

Posted by Deb | Investments | Monday 23 September 2013 3:53 pm

Slow and steady wins the race — nowhere is this more significant than when you are considering an investment. While the lure of making a fast buck from certain opportunities in the money markets can mean a financially rewarding investment, there are risks involved when you choose to take the quick route. Making money from any sound investment may take time but the danger of losing what you have put in is greatly reduced in contrast to investments made on a whim.

Pooled Resources

Most serious investors would look into mutual funds for long-term investment for different reasons. For one, a mutual fund may free up individual investors from having to personally choose and monitor a portfolio because the asset management company makes the investments in different securities. For another, a mutual fund is a sound option for building up a long-term cash fund to use for a kid’s education, retirement, or any other particular financial objective. As such, many organizations actually consider a mutual fund as a way to grow pension and trust programs.

So what is a mutual fund? A mutual fund pools the money of individuals and/or institutional investors to create a big asset base. The assets are then managed by full time, registered professionals from an asset management company which is tasked to develop and maintain a diversified portfolio. The profits or losses are then shared by the investors and will be proportionate to the money they invested.

The Appeal of Mutual Funds

Mutual funds, for long term investors, are ideal investments because of the safety delivered in terms of limiting the risk for losses. Mutual funds are regulated by a securities and exchange commission of concerned countries; in India, the SEBI or the Securities and Exchange Board of India is tasked to protect the interest of the investors. In addition to limited risks, mutual funds could also offer good liquidity. This means that investors could convert their investments into cash, which will then be based on the current Net Asset Value (NAV) per share. NAV is basically the market value of a securities scheme.

Of course, even with the expert handling of an asset management company and such promising prospects, the retail investor should still learn as much as one can about mutual funds, including how to further become a successful investor. A potential source could be Parag Parikh’s views on behavioral finance and value investing. Parag Parikh is a fellow at the Harvard Business School and has authored two books, one of which is the bestselling “Value Investing and Behavioral Finance: Insights into Indian Stock Market Realities.” The book delves into the fallacies of the stock market and guides investors on making better informed decisions.

In conclusion, whether you intend to go with the long-term prospects of mutual funds, it pays to know what you are getting into because a market on an upward swing can quickly shift to a downward direction. Arm yourself with the proper knowledge. Read more about mutual funds (and other investment options). And gain better insight into the money markets through experts like Parag Parikh.

About the author: Sarah Miller is a business consultant and a part-time writer. She loves to travel abroad to have a good grasp on various types of businesses. She actually puts her learning through writing. She writes in behalf of http://amc.ppfas.com/.

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