Sometimes you have sleepless nights worrying about which stocks to buy and sell, to possess those funds and to dump and or in bonds.
These are all legitimate concerns, but the biggest determinant of your success as an investor, your acumen in not selecting specific stocks, bonds or funds for your portfolio. No, it will be your asset allocation. That is, the way you slice up your portfolio in broad categories of, say, large-cap growth stocks and value stocks and triple A bonds and so on.
There are many opportunities for investors today. Making use of these opportunities by strategically spreading your money in a number of different instruments can use to protect your portfolio and improve your chances of achieving a desired yield.
It is important for investors to understand that diversification in building a balanced portfolio helps reduce risk and improve returns.
Asset allocation is another way to diversify. It uses the fact that when it comes to risk and reward, financial classes such as equities, bonds and money market instruments (money value) represents all behave quite differently!
Stocks, for example, offer the highest returns among the three "asset classes" but they also carry the highest risk of losses.
Bonds are not as lucrative, but they offer much more stability than stocks.
Money market yields are puny, but you will never lose your initial investment.
An asset allocation strategy looks at your specific goals and circumstances and determine which asset gives you the optimal mix of risk and reward.
Asset allocation is a process to visit again and again as you continue to build your portfolio in your life. Again Learn about the events that a period of re-evaluation of your asset allocation may suggest!
Chances are that, over time, the value of your investment in shares will be faster than grow. In bonds and cash equivalents of your investments Eventually you will probably have a greater percentage of your money invested in stocks recommended than your original strategy.
When this situation occurs, your portfolio will be exposed to more risk. To ensure that your assets are invested appropriately periodically rebalance your investments!
Ioannis Evangelos (Akis) Haramis was born in Athens, Greece in 1951. He studied in Greece, in the U.S. and in Belgium and is active in the equity markets since 1972. Since 2002 he is New Business Development Managing Director at an Investment Bank and the publisher of
Friday, 28 February 2014
Saturday, 15 February 2014
Investing in Son's Business Could Cause a Real Family Feud
Q: My youngest son wants to borrow $ 5,000 to start his own business. My wife is not afraid to tell him. She thinks we should just give him the money and expect nothing in return. I disagree. He has a very good track record with no money, so I'm a little worried that my investment lost. Should I lend him the money and hope for the best or just tell him no and hope he does not get too upset?
A: The first thing you should do, Jeff, is to determine whether this money to your son would be offered in the form of a grant, loan or investment. The wording of your question tells me that you have not done that all important distinction.
It sounds like your wife wants to do, something to be expected, returned a gift of money but the undying love of her last born son.
You, on the other hand, do not know if you should offer the money as a loan (should I lend him the money) or as an investment (worried that my investment to be lost).
Until you can make that distinction needs money to stay on the bench.
I have a very simple rule when it comes to lending money to relatives: NEVER, EVER loan money to anyone you might have to sit next to at Thanksgiving dinner.
"Son, give me that dressing and tell everyone the story of how you blew your old father's retirement money ..."
A loan from a family member is no different than a loan from a bank. You, Mr. Banker, are giving your son, sir borrower, the use of your money for a certain period of time and you expect to pay under certain conditions even if their business to the south the loan. Sure, you will probably be a bit more forgiving than a bank when the loan goes unpaid, but the damage to your personal relationship can restore extreme and difficult.
In the most basic terms if you borrow your son the money you he is the creditor and the debtor. Have you ever heard of a creditor and debtor have a very good relationship? Visa has ever just called to ask how you're doing? Does your mortgage company ever had a child named after you? Probably not.
The same rule applies with investing in a family business. I have raised money for various business ventures and not once did I ever think about asking my relatives to chip in. The last thing I would ever want to do is lose my mother's yard sale money. I had never heard the end of it!
An investment is made with the understanding that money is totally at risk with no guarantee of return. Even under the best circumstances, an investment in any business is a gamble. You are betting your money that the company will be successful and that you get a payback at some point in the future.
Hug your money real tight before the investment, because if the company does not make it you will never see your money.
You and your wife seem very concerned about making your son crazy, which is another big red flag calling for me. If your son is not mature enough to take the word without getting upset, "no" he's certainly not mature enough to start a business and to implement. Unless that company is a bicycle paper route, and even then I would not put my money on his chances of success.
The bottom line is this: if you can afford to give your son the money and can do so without attaching strings, then by all means give him the money and wish him well. Courageous entrepreneurial spirit and support him as a parent should.
However, do not expect anything in return and never spend the money, especially if he's the one carving the turkey on Thanksgiving Day.
Here's to your success!
Tim Knox, Entrepreneur, Author, Speaker, Radio Host
Founder, The Insiders Club, gives you the opportunity to start your business today
Bestselling author of "Everything I Know About Business I Learned From My Mama"
A: The first thing you should do, Jeff, is to determine whether this money to your son would be offered in the form of a grant, loan or investment. The wording of your question tells me that you have not done that all important distinction.
It sounds like your wife wants to do, something to be expected, returned a gift of money but the undying love of her last born son.
You, on the other hand, do not know if you should offer the money as a loan (should I lend him the money) or as an investment (worried that my investment to be lost).
Until you can make that distinction needs money to stay on the bench.
I have a very simple rule when it comes to lending money to relatives: NEVER, EVER loan money to anyone you might have to sit next to at Thanksgiving dinner.
"Son, give me that dressing and tell everyone the story of how you blew your old father's retirement money ..."
A loan from a family member is no different than a loan from a bank. You, Mr. Banker, are giving your son, sir borrower, the use of your money for a certain period of time and you expect to pay under certain conditions even if their business to the south the loan. Sure, you will probably be a bit more forgiving than a bank when the loan goes unpaid, but the damage to your personal relationship can restore extreme and difficult.
In the most basic terms if you borrow your son the money you he is the creditor and the debtor. Have you ever heard of a creditor and debtor have a very good relationship? Visa has ever just called to ask how you're doing? Does your mortgage company ever had a child named after you? Probably not.
The same rule applies with investing in a family business. I have raised money for various business ventures and not once did I ever think about asking my relatives to chip in. The last thing I would ever want to do is lose my mother's yard sale money. I had never heard the end of it!
An investment is made with the understanding that money is totally at risk with no guarantee of return. Even under the best circumstances, an investment in any business is a gamble. You are betting your money that the company will be successful and that you get a payback at some point in the future.
Hug your money real tight before the investment, because if the company does not make it you will never see your money.
You and your wife seem very concerned about making your son crazy, which is another big red flag calling for me. If your son is not mature enough to take the word without getting upset, "no" he's certainly not mature enough to start a business and to implement. Unless that company is a bicycle paper route, and even then I would not put my money on his chances of success.
The bottom line is this: if you can afford to give your son the money and can do so without attaching strings, then by all means give him the money and wish him well. Courageous entrepreneurial spirit and support him as a parent should.
However, do not expect anything in return and never spend the money, especially if he's the one carving the turkey on Thanksgiving Day.
Here's to your success!
Tim Knox, Entrepreneur, Author, Speaker, Radio Host
Founder, The Insiders Club, gives you the opportunity to start your business today
Bestselling author of "Everything I Know About Business I Learned From My Mama"
Thursday, 30 January 2014
Keeping It Interesting
A few lines from a movie never leave your mind, I do not always remember the context, but I remember the dialog. "The Big Chill" is one of the few movies that I own (VHS). At dinner, William Hurt, Jeff Goldbloom and Tom Berenger discuss their past as dogs growl for a turkey leg on Thanksgiving. JoBeth Williams brings peace by chastising of men, and that Hurt replied with a grin, "Just try to keep the conversation. Lively" It's one of those "had to be there" moments.
Tire Dealers "keep the conversation lively." Have you noticed that long-term rates fell, while short-term rates have risen? Low long-term interest rates is the housing asset (a positive, perhaps), with the implicit suggestion of a slowing economy (a decrease in long-term loans by corporations suggests a slowdown in the economy). All this happens when the Federal Reserve rates higher torques!
An interest rate anomaly occurs when short-term rates is near than long-term rates. This is known as an "inverted yield curve". Inverted yield curve preceded the last five recessions. "There's something strange going on in the bond market," writes ES Browning (Wall Street Journal, May 31, 2005). Markets have long-term trends right, usually .
Low interest rates encourage positive stock returns, but market volatility seems to defy such optimism. One day stocks are up and the next down. Someone said: "When interest rates are low to grow share." Many market analysts get hit-happy moments with low interest rates. Optimism not move markets, pessimism does. Browning wisely observes' ... the prevailing view in the stock market is one of the celebrations ... "When it should be feared. (WSJ, May 31, 2005)
Some economists expect deteriorating economic conditions. "In the past 35 years, the skeptics say, have Fed rate increases tend to end up with the problems." (WSJ, May 31, 2005) Most recently, the chewing gum market plunged in 2000 left stocks looking like bubble gum pink on the cheeks of a child.
No simple resolution keeps investors against the dangers of an inverted yield curve. Each analyst, economist and expert has an opinion. What matters is the reaction of the bond market, and the current short and long term profits are "keep it interesting."
My point? There is no way to each asset class movement (up or down) to predict. Broad diversification within the bond universe provides overall benefit to your portfolio. This does not mean owning all possible binding, it means integrating bond management consistently to achieve within the context of your risk tolerance, your goals.
* These are the main bond (fixed income) asset classes U.S. government
* International Fixed Income
* Municipals (tax-efficient accounts)
* High Yield
* Emerging Market Debt
"If there is one thing is no longer a subject of controversy, it is no longer an issue of importance." - William Hazlitt, English essayist (1778 - 1830)
Ray Randall serves clients as a registered investment advisor with his firm, Ethos Advisory Services, Essex, Massachusetts. He has extensive experience in financial services, writes a weekly newsletter for Ethos Advisory Services, and coordinates the developments at Echievements . Ray has a Masters Degree from Gordon-Conwell Theological Seminary, Hamilton, MA. You can e-mail him or call
Tire Dealers "keep the conversation lively." Have you noticed that long-term rates fell, while short-term rates have risen? Low long-term interest rates is the housing asset (a positive, perhaps), with the implicit suggestion of a slowing economy (a decrease in long-term loans by corporations suggests a slowdown in the economy). All this happens when the Federal Reserve rates higher torques!
An interest rate anomaly occurs when short-term rates is near than long-term rates. This is known as an "inverted yield curve". Inverted yield curve preceded the last five recessions. "There's something strange going on in the bond market," writes ES Browning (Wall Street Journal, May 31, 2005). Markets have long-term trends right, usually .
Low interest rates encourage positive stock returns, but market volatility seems to defy such optimism. One day stocks are up and the next down. Someone said: "When interest rates are low to grow share." Many market analysts get hit-happy moments with low interest rates. Optimism not move markets, pessimism does. Browning wisely observes' ... the prevailing view in the stock market is one of the celebrations ... "When it should be feared. (WSJ, May 31, 2005)
Some economists expect deteriorating economic conditions. "In the past 35 years, the skeptics say, have Fed rate increases tend to end up with the problems." (WSJ, May 31, 2005) Most recently, the chewing gum market plunged in 2000 left stocks looking like bubble gum pink on the cheeks of a child.
No simple resolution keeps investors against the dangers of an inverted yield curve. Each analyst, economist and expert has an opinion. What matters is the reaction of the bond market, and the current short and long term profits are "keep it interesting."
My point? There is no way to each asset class movement (up or down) to predict. Broad diversification within the bond universe provides overall benefit to your portfolio. This does not mean owning all possible binding, it means integrating bond management consistently to achieve within the context of your risk tolerance, your goals.
* These are the main bond (fixed income) asset classes U.S. government
* International Fixed Income
* Municipals (tax-efficient accounts)
* High Yield
* Emerging Market Debt
"If there is one thing is no longer a subject of controversy, it is no longer an issue of importance." - William Hazlitt, English essayist (1778 - 1830)
Ray Randall serves clients as a registered investment advisor with his firm, Ethos Advisory Services, Essex, Massachusetts. He has extensive experience in financial services, writes a weekly newsletter for Ethos Advisory Services, and coordinates the developments at Echievements . Ray has a Masters Degree from Gordon-Conwell Theological Seminary, Hamilton, MA. You can e-mail him or call
Wednesday, 15 January 2014
Guru Focused: Robert Olstein's Short Sells
Although it is quite rare that value gurus sell stocks short, Robert Olstein has been selling short in his Financial Alert Fund. Accountant-turned fund manager spots values by looking behind the numbers. In the second quarter of 2004, Robert Olstein sold short American Italian Pasta Co. (PLB) at $ 31. After about six months he covered for $ 20, quickly made more than $ 1 million for his fund. He is currently short two files: Computer Sciences Corp. (CSC) and Fleetwood Enterprises Inc. (FLE), although things do not always go that smoothly.
Robert Olstein is definitely one of the best money managers (which is why he's Hall of Fame Guru Focus). The strategy of looking behind the numbers has brought his fund a 15.5% average annual return of more than 10 years after all costs. The only downside was the year 2002, from 19%. In 2000, the year of the tech bubble burst, the fund increased by 12%, and in 2001, an increase of 17%.
Robert Olstein began shorting Computer Sciences Corp. (CSC) in the first quarter of 2004 at an average price of $ 41. He said that the accounts of CSC is not in line with economic reality, CSC is worth about $ 30. The price of CSC not down, however. He then shorted more shares. But the price of CSC went up, by the fourth quarter of 2004, the price of CSC was $ 56. It came down to what in the first quarter of 2005, Robert Olstein was confident enough to share again more recently. From the end of the first quarter, his short position in CSC total of 504 500 shares at an average price of $ 42. As of this writing, the price of CSC is $ 46.4.
The other short selling of Robert Olstein is Fleetwood Enterprises Inc. (FLE). He thinks Fleetwood Enterprises Inc. is worth about $ 5-6 per share. He sold short 1.1955 million shares of FLE at about $ 9.2 per share in the first quarter of 2005. Now Fleetwood has a price of $ 9.5 per share.
Remarkably, another highly respected value manager, GuruFocus guru, Robert Rodriguez, disagreed with his colleagues Olstein value. In the fourth quarter of 2004, 269,500 shares of FLE Rodriguez added to his holdings at about $ 14 per share. If the share price dropped to $ 9, 2.2619 million more shares, bringing its total position in Fleetwood makes to 3.7144 million shares he added.
Who is right, Robert vs. Robert?
Dr. Charlie Tian is the Director of Research at GuruFocus.com, a website follows the stock picks and market insight of guru investors such as Warren Buffett, George Soros, etc.
Robert Olstein is definitely one of the best money managers (which is why he's Hall of Fame Guru Focus). The strategy of looking behind the numbers has brought his fund a 15.5% average annual return of more than 10 years after all costs. The only downside was the year 2002, from 19%. In 2000, the year of the tech bubble burst, the fund increased by 12%, and in 2001, an increase of 17%.
Robert Olstein began shorting Computer Sciences Corp. (CSC) in the first quarter of 2004 at an average price of $ 41. He said that the accounts of CSC is not in line with economic reality, CSC is worth about $ 30. The price of CSC not down, however. He then shorted more shares. But the price of CSC went up, by the fourth quarter of 2004, the price of CSC was $ 56. It came down to what in the first quarter of 2005, Robert Olstein was confident enough to share again more recently. From the end of the first quarter, his short position in CSC total of 504 500 shares at an average price of $ 42. As of this writing, the price of CSC is $ 46.4.
The other short selling of Robert Olstein is Fleetwood Enterprises Inc. (FLE). He thinks Fleetwood Enterprises Inc. is worth about $ 5-6 per share. He sold short 1.1955 million shares of FLE at about $ 9.2 per share in the first quarter of 2005. Now Fleetwood has a price of $ 9.5 per share.
Remarkably, another highly respected value manager, GuruFocus guru, Robert Rodriguez, disagreed with his colleagues Olstein value. In the fourth quarter of 2004, 269,500 shares of FLE Rodriguez added to his holdings at about $ 14 per share. If the share price dropped to $ 9, 2.2619 million more shares, bringing its total position in Fleetwood makes to 3.7144 million shares he added.
Who is right, Robert vs. Robert?
Dr. Charlie Tian is the Director of Research at GuruFocus.com, a website follows the stock picks and market insight of guru investors such as Warren Buffett, George Soros, etc.
Sunday, 29 December 2013
New U.S. Mint Coins a Golden Opportunity
In April, the U.S. Mint revealed plans to strike new .9999 gold coins to go after the growing global market for .9999 fine (24-karat) gold coins in early 2006. Studies show that pure gold coins claim 60% of the world's gold coin market, which is about $ 2.4 billion annually. The Royal Canadian Mint's Maple Leafs holds the number one place for pure gold coins. However, problems surfaced with maple leafs.
If the Mint avoids the problems that have developed with Gold Maple Leafs, it has a golden opportunity to grab. An even larger share of the gold coin market The U.S. Mint's American Gold Eagles are the best selling 22-carat gold coins in the world.
Despite the fact that the world's best-selling 24-carat gold coins, design and packaging 1-oz Maple Leafs' leave them susceptible to damage. As a result, Gold Maple Leafs have fallen into disfavor among American gold coin investors. There are indications that gold coin investors worldwide have the same frustrations with 1-oz Gold Maple Leaf coins.
It is almost impossible to remove, inspect, and put 1-oz Gold Maple Leafs back in their tubes without scratching them, no matter how carefully done. Gold Maple Leafs have smooth, clear areas around Queen Elizabeth's likeness and sharp serrated edge. When the coins are put back in their tubes the edges scratch the fields - and sometimes elevated image of the queen.
And, heaven forbid that a 1-oz Gold Maple Leaf is dropped on a hard floor or a tabletop. But the most damage is done when investors handle the coins. If Gold Maple Leafs roughly treated, as investors are used to treat Krugerrands and Gold Eagles, Gold Maple Leafs are easily damaged. Consequently, many badly damaged Gold Maple Leafs are reflected in the secondary market.
Until a few years ago, Gold Eagles and Maple Leafs sold in the same markings on spot. But, as Maple Leafs, investors who bought since 1979, began to arrive in the secondary market, problems surfaced. Now, to keep investors in the U.S. market to buy Maple Leafs, the Royal Canadian Mint for new (current year) Gold Maple Leafs offer at a half-a-percent under Gold Eagle awards.
Damaged 1-oz Gold Maple Leafs are such a problem that a major secondary market maker stopped dealing in coins for a while. The head trader said he was not the time to discuss with buyers and sellers the terms of the coins. He said his staff had no time to inspect each coin and classify it as the amount of the damage. It is commonplace for sellers to say that the coins are in "perfect condition." But when Gold Maple Leafs come, they often badly scratched or nicked rim.
Another major bullion dealer (perhaps the nation's largest) currently buys back "perfect" Gold Maple leaves from dealers located just over a spot, which means that investors receive less than their place as dealers resolve this firm. For scratched or damaged coins, these firms pay less than spot, which the company to send a refinery at a profit if the company does not have the coins buyers for Gold Maple Leafs.
The secondary dealer returned to trading Gold Maple Leafs, but alone buy them at prices that will enable him to profitably melt the coins as they really are beaten. As noted, because of the problem with the secondary market Gold Maple Leafs, the Royal Canadian Mint has to price Gold Maple Leafs below Gold Eagles to entice people to participate in the U.S. market. Gold Maple Leafs investors
Fortunately - the free market is what it is - there are dealers who evaluate the time to Gold Maple Leafs and pay more for those in better condition will take. Nevertheless, the spread (the difference between what an investor can buy and sell at any time) to "perfect" Gold Maple Leafs is about $ 4 wider than Gold Eagles. However, the U.S. Mint's new 24-karat gold coins have no problem coins.
For example, the 1-oz Austrian Philharmonics and The Perth Mint's 1-oz coins are .9999 fine. However, these coins are not easy to be damaged during normal handling due to their design and / or packaging.
Philharmonics ten to a tube and can be taken off and put back without scratches in their tubes. The Perth Mint coins come individually encased in hard plastic capsules. As long as Perth Mint coins remain in their capsules, they maintain their perfect conditions.
Hopefully, you know the U.S. Mint of the problems with the Gold Maple Leafs and designs her new .9999 fine coins and their packaging, so that the coins are not easily scratched or damaged. If the Mint chooses to deal with the packaging of the new coins in tubes, as the Gold Eagles and as Philharmonics are packaged, then avoid. Currency have milled edges
Although Gold Eagles edges, old U.S. gold coins ($ 20 Libs and St. Gaudens) are milled were beaten with lettering on the edges. So, lettering is not new to the U.S. Mint. With lettering, the edges are smooth, making the coins are less likely to scratch other coins in treatment. Philharmonics, which is not susceptible to damage, letters have their edges.
[Over the centuries, mints learned to design to guard against "shaving," a process in which a small amount of metal is "shaved" the edges gold coins. Milled edges are trimmed clearly audible. Light letters on the edges solves the problem. If no lettering can be seen on coins that are known to have been beaten with letters, then the coins shaven and no longer have their original gold content.]
If you Maple Leafs, Perth Mint .9999 fine gold coins have milled edges and carry an effigy of Queen Elizabeth II on the obverse (front). However, to protect against damage, the Coin The Perth Mint encapsulates them in plastic capsules. When Perth Mint gold coins are removed from their capsules and tubes, the coins are easily scratched as his Maple Leafs.
To go after a piece of the $ 2400000000 .9999 fine gold coin market, the Mint needs to consider the mindset of bullion coin investors. Bullion coin investors look for alternatives to paper money, they are not coin collectors. Bullion coin investors prefer coins packaged so they can be stored and secured easily.
This means that the coin must package the coins twenty to form a tube, which has become - in particular as a result of the Gold Eagles - are preferred. Five tubes favorable total hundred coins. Furthermore, the tubes are made of the same durable plastic which Gold Eagle pipes are manufactured. Hard plastic pipes, such as Philharmonics, and can break when dropped. Gold Eagle pipes, however, are virtually indestructible.
"Shave" for protection against the Mint should design with letters edges. Their new coins Letters edges would make the coins less prone to scratches.
The Mint is like to feel and weight. Their currencies after the bullion coin market, and bullion investors Packing the coins in tubes allows investors to more easily inspect their coins. Collectors, on the other hand, want to make. Their coins in such pristine condition Although capsules are excellent for protecting collector coins, coins individually packaged in capsules require more space for storage. The other aspect that the Mint has to consider is the theme of the coin.
The coin should be the theme to make something uniquely American, as it did with his American Eagles coins. For the Gold Eagles, the Mint chose a slimmed-down rendition of Augustus Saint-Gaudens' famous Standing Liberty, which he founded in 1907 to create a new Double Eagle ($ 20 gold coin) worship. Almost a hundred years later, the Saint Gaudens, the currency is now called, is seen as the most beautiful coin by the U.S. Mint.
For the Silver Eagles, the Mint chose AA Weinman Walking Liberty design, which was used on half dollars from 1916 to 1947. Walking Liberty halves are among the most popular silver coins ever turned out by the U.S. Mint. Based on the success of the Silver Eagles program (more than 128 million sold since their inception), making the Walking Liberty on Silver Eagles was the right move.
Some may argue that the Standing Liberty and the Walking Liberty used in American Eagles program, design and therefore the currency to go to another design. However, the Standing Liberty and the Walking Liberty immediately identified as American by the world's bullion coin buyers. Besides, is not so much Miss Liberty icon of our nation as the eagle?
If the U.S. Mint avoids the problems that have surfaced with Gold Maple Leafs and offers gold coin investors a strong alternative, then it has a golden opportunity to gain a large share of the .9999 fine gold market. With proper planning, could Currency grip of the Maple Leaf on the .9999 bullion to shake. Currency market
Bill Haynes heads CMI Gold & Silver, one of the nation? Oldest precious metals dealers. For more information about investing in gold and silver, visit
If the Mint avoids the problems that have developed with Gold Maple Leafs, it has a golden opportunity to grab. An even larger share of the gold coin market The U.S. Mint's American Gold Eagles are the best selling 22-carat gold coins in the world.
Despite the fact that the world's best-selling 24-carat gold coins, design and packaging 1-oz Maple Leafs' leave them susceptible to damage. As a result, Gold Maple Leafs have fallen into disfavor among American gold coin investors. There are indications that gold coin investors worldwide have the same frustrations with 1-oz Gold Maple Leaf coins.
It is almost impossible to remove, inspect, and put 1-oz Gold Maple Leafs back in their tubes without scratching them, no matter how carefully done. Gold Maple Leafs have smooth, clear areas around Queen Elizabeth's likeness and sharp serrated edge. When the coins are put back in their tubes the edges scratch the fields - and sometimes elevated image of the queen.
And, heaven forbid that a 1-oz Gold Maple Leaf is dropped on a hard floor or a tabletop. But the most damage is done when investors handle the coins. If Gold Maple Leafs roughly treated, as investors are used to treat Krugerrands and Gold Eagles, Gold Maple Leafs are easily damaged. Consequently, many badly damaged Gold Maple Leafs are reflected in the secondary market.
Until a few years ago, Gold Eagles and Maple Leafs sold in the same markings on spot. But, as Maple Leafs, investors who bought since 1979, began to arrive in the secondary market, problems surfaced. Now, to keep investors in the U.S. market to buy Maple Leafs, the Royal Canadian Mint for new (current year) Gold Maple Leafs offer at a half-a-percent under Gold Eagle awards.
Damaged 1-oz Gold Maple Leafs are such a problem that a major secondary market maker stopped dealing in coins for a while. The head trader said he was not the time to discuss with buyers and sellers the terms of the coins. He said his staff had no time to inspect each coin and classify it as the amount of the damage. It is commonplace for sellers to say that the coins are in "perfect condition." But when Gold Maple Leafs come, they often badly scratched or nicked rim.
Another major bullion dealer (perhaps the nation's largest) currently buys back "perfect" Gold Maple leaves from dealers located just over a spot, which means that investors receive less than their place as dealers resolve this firm. For scratched or damaged coins, these firms pay less than spot, which the company to send a refinery at a profit if the company does not have the coins buyers for Gold Maple Leafs.
The secondary dealer returned to trading Gold Maple Leafs, but alone buy them at prices that will enable him to profitably melt the coins as they really are beaten. As noted, because of the problem with the secondary market Gold Maple Leafs, the Royal Canadian Mint has to price Gold Maple Leafs below Gold Eagles to entice people to participate in the U.S. market. Gold Maple Leafs investors
Fortunately - the free market is what it is - there are dealers who evaluate the time to Gold Maple Leafs and pay more for those in better condition will take. Nevertheless, the spread (the difference between what an investor can buy and sell at any time) to "perfect" Gold Maple Leafs is about $ 4 wider than Gold Eagles. However, the U.S. Mint's new 24-karat gold coins have no problem coins.
For example, the 1-oz Austrian Philharmonics and The Perth Mint's 1-oz coins are .9999 fine. However, these coins are not easy to be damaged during normal handling due to their design and / or packaging.
Philharmonics ten to a tube and can be taken off and put back without scratches in their tubes. The Perth Mint coins come individually encased in hard plastic capsules. As long as Perth Mint coins remain in their capsules, they maintain their perfect conditions.
Hopefully, you know the U.S. Mint of the problems with the Gold Maple Leafs and designs her new .9999 fine coins and their packaging, so that the coins are not easily scratched or damaged. If the Mint chooses to deal with the packaging of the new coins in tubes, as the Gold Eagles and as Philharmonics are packaged, then avoid. Currency have milled edges
Although Gold Eagles edges, old U.S. gold coins ($ 20 Libs and St. Gaudens) are milled were beaten with lettering on the edges. So, lettering is not new to the U.S. Mint. With lettering, the edges are smooth, making the coins are less likely to scratch other coins in treatment. Philharmonics, which is not susceptible to damage, letters have their edges.
[Over the centuries, mints learned to design to guard against "shaving," a process in which a small amount of metal is "shaved" the edges gold coins. Milled edges are trimmed clearly audible. Light letters on the edges solves the problem. If no lettering can be seen on coins that are known to have been beaten with letters, then the coins shaven and no longer have their original gold content.]
If you Maple Leafs, Perth Mint .9999 fine gold coins have milled edges and carry an effigy of Queen Elizabeth II on the obverse (front). However, to protect against damage, the Coin The Perth Mint encapsulates them in plastic capsules. When Perth Mint gold coins are removed from their capsules and tubes, the coins are easily scratched as his Maple Leafs.
To go after a piece of the $ 2400000000 .9999 fine gold coin market, the Mint needs to consider the mindset of bullion coin investors. Bullion coin investors look for alternatives to paper money, they are not coin collectors. Bullion coin investors prefer coins packaged so they can be stored and secured easily.
This means that the coin must package the coins twenty to form a tube, which has become - in particular as a result of the Gold Eagles - are preferred. Five tubes favorable total hundred coins. Furthermore, the tubes are made of the same durable plastic which Gold Eagle pipes are manufactured. Hard plastic pipes, such as Philharmonics, and can break when dropped. Gold Eagle pipes, however, are virtually indestructible.
"Shave" for protection against the Mint should design with letters edges. Their new coins Letters edges would make the coins less prone to scratches.
The Mint is like to feel and weight. Their currencies after the bullion coin market, and bullion investors Packing the coins in tubes allows investors to more easily inspect their coins. Collectors, on the other hand, want to make. Their coins in such pristine condition Although capsules are excellent for protecting collector coins, coins individually packaged in capsules require more space for storage. The other aspect that the Mint has to consider is the theme of the coin.
The coin should be the theme to make something uniquely American, as it did with his American Eagles coins. For the Gold Eagles, the Mint chose a slimmed-down rendition of Augustus Saint-Gaudens' famous Standing Liberty, which he founded in 1907 to create a new Double Eagle ($ 20 gold coin) worship. Almost a hundred years later, the Saint Gaudens, the currency is now called, is seen as the most beautiful coin by the U.S. Mint.
For the Silver Eagles, the Mint chose AA Weinman Walking Liberty design, which was used on half dollars from 1916 to 1947. Walking Liberty halves are among the most popular silver coins ever turned out by the U.S. Mint. Based on the success of the Silver Eagles program (more than 128 million sold since their inception), making the Walking Liberty on Silver Eagles was the right move.
Some may argue that the Standing Liberty and the Walking Liberty used in American Eagles program, design and therefore the currency to go to another design. However, the Standing Liberty and the Walking Liberty immediately identified as American by the world's bullion coin buyers. Besides, is not so much Miss Liberty icon of our nation as the eagle?
If the U.S. Mint avoids the problems that have surfaced with Gold Maple Leafs and offers gold coin investors a strong alternative, then it has a golden opportunity to gain a large share of the .9999 fine gold market. With proper planning, could Currency grip of the Maple Leaf on the .9999 bullion to shake. Currency market
Bill Haynes heads CMI Gold & Silver, one of the nation? Oldest precious metals dealers. For more information about investing in gold and silver, visit
Friday, 27 December 2013
Basic Options Terms
Options are good investing and speculative instruments. But options terminology can confuse even experienced investors. In this article we will take a few basic options terms.
Option - A contract giving the holder the right, but not the obligation, to buy or sell a particular security at a predetermined price provides for a certain period. The seller of the option has the obligation to the terms of the agreement is fulfilled in case of exercise of the buyer's option.
Call Option - A contract that gives the buyer the right, but not change the obligation, to buy at an exercise price a certain amount of underlying any time before the contract expires (if the American style option) or any expiration (as the European-style option). The call option buyer hopes the price of the shares will rise by a specific date when the put option seller hopes that the price of the shares to decline or remain stable by the specified date.
For example: I'm writing a call option with 100 Microsoft shares, strike at $ 35 and maturity in July. Now I have an obligation to the terms of the agreement are fulfilled. I get some money for this contract and I hope that the price will be more than $ 35, no. But if you exercise the option buyer contract I have to sell you 100 Microsoft shares at $ 35 each.
Put Option - An option contract giving the owner the right, but not the obligation, to sell at an exercise price a specified amount of an underlying asset within a certain time. The put option buyer hopes the price of the shares will drop by a specific date when the put option seller hopes that the price of the shares rise or remain stable by the specified date.
For example, I write a putt option with 100 Microsoft shares, strike at $ 35 and maturity in July. I get some money for this contract and I hope that the price will not be less than $ 35. But if you exercise the option buyer contract I should buy from you 100 Microsoft shares at $ 35 each.
Underlying Security - The stocks, commodities, futures or other financial instruments to which an option contract is based.
For example: In previous examples underlying security is Microsoft stock.
Exercise Price or Strike Price - The price that the option contract, the holder may buy or sell the underlying asset.
Due Date - The date on which an option and all rights associated with it ceases to exist. Maturity is the last day on which an option can be exercised.
Expiration - The date and time after which an option can not be exercised.
Exercise - can holder to the right to appeal associated with a particular option. In the exercise of a call option, the holder acquires shares at an exercise price of the vendor option. In the case of a put, the holder of the option the seller sells the stock option at the strike price.
Automatic Exercise - The automatic exercise of in-the-money option at expiration of the clearing firm.
Premium - the total price of an option both intrinsic and extrinsic or time.
In-the-Money Option - A call option is in-the-money if the strike price is lower than the market price of the underlying asset. A put option is in-the-money if the strike price is higher than the market price of the underlying asset
At-the-money - An option is at-the-money if the strike price is equal to the current market price of the underlying asset.
Out-of-the-Money - An option with strike price is above (in the case of a call) or below (in the case of a put) the current market price of the underlying asset.
Intrinsic Value - The part of the price of an option that can account for the amount by which the option is in-the-money. Intrinsic Value = Oprion price - TimeValue (for options in-the-money)
Time Value of extrinsic value - The amount by which the current price of an option exceeds its intrinsic value. The price of the out-of-the-money and at-the-money options consists exclusively of extrinsic value
Options can be risky, but you can control and reduce risks. If you buy newbie in options, buy some books, visit some seminars or online training before your first option or sell.
If you want to invest or trading courses, trainings or seminars will visit FPLab - Educational Resource for traders and investors Links catalog
Option - A contract giving the holder the right, but not the obligation, to buy or sell a particular security at a predetermined price provides for a certain period. The seller of the option has the obligation to the terms of the agreement is fulfilled in case of exercise of the buyer's option.
Call Option - A contract that gives the buyer the right, but not change the obligation, to buy at an exercise price a certain amount of underlying any time before the contract expires (if the American style option) or any expiration (as the European-style option). The call option buyer hopes the price of the shares will rise by a specific date when the put option seller hopes that the price of the shares to decline or remain stable by the specified date.
For example: I'm writing a call option with 100 Microsoft shares, strike at $ 35 and maturity in July. Now I have an obligation to the terms of the agreement are fulfilled. I get some money for this contract and I hope that the price will be more than $ 35, no. But if you exercise the option buyer contract I have to sell you 100 Microsoft shares at $ 35 each.
Put Option - An option contract giving the owner the right, but not the obligation, to sell at an exercise price a specified amount of an underlying asset within a certain time. The put option buyer hopes the price of the shares will drop by a specific date when the put option seller hopes that the price of the shares rise or remain stable by the specified date.
For example, I write a putt option with 100 Microsoft shares, strike at $ 35 and maturity in July. I get some money for this contract and I hope that the price will not be less than $ 35. But if you exercise the option buyer contract I should buy from you 100 Microsoft shares at $ 35 each.
Underlying Security - The stocks, commodities, futures or other financial instruments to which an option contract is based.
For example: In previous examples underlying security is Microsoft stock.
Exercise Price or Strike Price - The price that the option contract, the holder may buy or sell the underlying asset.
Due Date - The date on which an option and all rights associated with it ceases to exist. Maturity is the last day on which an option can be exercised.
Expiration - The date and time after which an option can not be exercised.
Exercise - can holder to the right to appeal associated with a particular option. In the exercise of a call option, the holder acquires shares at an exercise price of the vendor option. In the case of a put, the holder of the option the seller sells the stock option at the strike price.
Automatic Exercise - The automatic exercise of in-the-money option at expiration of the clearing firm.
Premium - the total price of an option both intrinsic and extrinsic or time.
In-the-Money Option - A call option is in-the-money if the strike price is lower than the market price of the underlying asset. A put option is in-the-money if the strike price is higher than the market price of the underlying asset
At-the-money - An option is at-the-money if the strike price is equal to the current market price of the underlying asset.
Out-of-the-Money - An option with strike price is above (in the case of a call) or below (in the case of a put) the current market price of the underlying asset.
Intrinsic Value - The part of the price of an option that can account for the amount by which the option is in-the-money. Intrinsic Value = Oprion price - TimeValue (for options in-the-money)
Time Value of extrinsic value - The amount by which the current price of an option exceeds its intrinsic value. The price of the out-of-the-money and at-the-money options consists exclusively of extrinsic value
Options can be risky, but you can control and reduce risks. If you buy newbie in options, buy some books, visit some seminars or online training before your first option or sell.
If you want to invest or trading courses, trainings or seminars will visit FPLab - Educational Resource for traders and investors Links catalog
Wednesday, 25 December 2013
Invest or be Pink Slipped
Firing an employee seems easier for companies. Until now you allowed them to set your clocks. Now it's time to fight back! Beat them at their own game. They had linked your future. Now your security is in your own hands.
Companies are trying to make the best use of their resources so they claim. You should do the same! And when the corporation is no longer the best use of your resource give them their pink slip. You should start to look for ways to leverage your time and increase your profit potential. Think like a corporation on how you can increase your revenue per quarter.
This is exactly what I did and I'm so grateful for. I was six years old, started before diversify my income. I accomplished this by investing in commodities. I still remember the thrill of my first trading commodities. I managed to get $ 1500 to $ 18,000 in turns. Approximately 4 months That was almost identical to my $ 20,000 / year salary at that time. Until that moment, nothing I tried to do to earn a real income you know the kind of income that would allow them to spend and enjoy life, I actually worked.
I immediately stopped buying all the other so-called moneymaking material. I started focusing all my efforts on investing in commodities. A funny thing happened to me. I noticed I was doing my job better, because I was happier knowing my investments work for me. Had I was able to handle stress better. I started setting goals and taking vacations away from home instead of using my vacation time just as time off work.
I even started troubleshooting a challenge for others, but the solutions seemed to come to me with ease. I gradually moved into the business through promotions. I started watching the company as an investment for me. This vision I could start taking full advantage of their tuition reimbursement program and their interest-free loans for the purchase of computers.
My experience with investing in commodities I could change my perspective on life. When I got the news that I would have a job as a result of reorganization, from I felt no pressure. I had planned at this time, six years. Of course, everyone was quite shocked when I kept my composure and said the company was the best company I have ever worked.
I continued to work diligently and happy until the last day. You will see the company had paid for my college education, gave me two interest-free loans for my computer and gave me a lifetime of experience. Well, the truth is that I knew I had allowed me to earn to invest the money. My investments in commodities and the company
Diversifying your income now!
© Copyright David Wells. This newsletter and all its contents are proprietary products. All rights reserved. You are welcome to forward it to anyone interested. The entire newsletter
Often referred to as The Money Motivator, David Wells is passionate about helping people become crack the code to wealth money magnets. Let him teach you the techniques Hillary Clinton used $ 1,000 into $ 100,000 over the course of a year.
To The Money Motivator to work for you, visit his website at and sign up for his free newsletter, Money Moments. In it you? Will receive creative ways for getting the money you need and how to invest like a millionaire.
Companies are trying to make the best use of their resources so they claim. You should do the same! And when the corporation is no longer the best use of your resource give them their pink slip. You should start to look for ways to leverage your time and increase your profit potential. Think like a corporation on how you can increase your revenue per quarter.
This is exactly what I did and I'm so grateful for. I was six years old, started before diversify my income. I accomplished this by investing in commodities. I still remember the thrill of my first trading commodities. I managed to get $ 1500 to $ 18,000 in turns. Approximately 4 months That was almost identical to my $ 20,000 / year salary at that time. Until that moment, nothing I tried to do to earn a real income you know the kind of income that would allow them to spend and enjoy life, I actually worked.
I immediately stopped buying all the other so-called moneymaking material. I started focusing all my efforts on investing in commodities. A funny thing happened to me. I noticed I was doing my job better, because I was happier knowing my investments work for me. Had I was able to handle stress better. I started setting goals and taking vacations away from home instead of using my vacation time just as time off work.
I even started troubleshooting a challenge for others, but the solutions seemed to come to me with ease. I gradually moved into the business through promotions. I started watching the company as an investment for me. This vision I could start taking full advantage of their tuition reimbursement program and their interest-free loans for the purchase of computers.
My experience with investing in commodities I could change my perspective on life. When I got the news that I would have a job as a result of reorganization, from I felt no pressure. I had planned at this time, six years. Of course, everyone was quite shocked when I kept my composure and said the company was the best company I have ever worked.
I continued to work diligently and happy until the last day. You will see the company had paid for my college education, gave me two interest-free loans for my computer and gave me a lifetime of experience. Well, the truth is that I knew I had allowed me to earn to invest the money. My investments in commodities and the company
Diversifying your income now!
© Copyright David Wells. This newsletter and all its contents are proprietary products. All rights reserved. You are welcome to forward it to anyone interested. The entire newsletter
Often referred to as The Money Motivator, David Wells is passionate about helping people become crack the code to wealth money magnets. Let him teach you the techniques Hillary Clinton used $ 1,000 into $ 100,000 over the course of a year.
To The Money Motivator to work for you, visit his website at and sign up for his free newsletter, Money Moments. In it you? Will receive creative ways for getting the money you need and how to invest like a millionaire.
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