Browsing Category: "silver"
Gold at $1100 an ounce is still cheap…
The title of this post reflects the view of respected commodities commentator, Marc Faber. His views recently reported suggest that at $1100 an ounce gold is actually cheaper than it was when it was $300 an ounce in the past.
“Faber explained that gold price should be treated in the same way that a company’s stock is being treated by investors. “A company’s stock could be less expensive at $100 than when it was selling for $10, because earnings growth has outpaced the appreciation of the shares and therefore its P/E has declined, gold could be cheaper at the current price than when it was at less than $300 because of the explosion of foreign exchange reserves in the world, zero interest rates, the huge debt overhang, and the expectation of further money printing,” he said.”
Another factor to take into account is who will be buying the precious metal over the coming year. Analysts are looking to China as a potential purchaser given the country’s nervousness about the US$.
Now, debate about the price of gold is like any investment field, there are always as many bullish views as their are bearish and so you should exercise caution when trying to make a decision for yourself. Personally the bullish argument is stronger in my opinion and that is why I have bought physical gold from Bullion Vault.
This is an extremely efficient way to buy this particular commodity as they are able to offer good prices and low dealing costs. In fact, they are also now dealing in silver bullion as they see this as a growth area for the future.
With predictions for gold ranging from $1500 all the way up to $5000 an ounce there is still plenty of scope for profit and you should consider including the metal as part of your portfolio. We may still see pullbacks in the short term but hopefully the future will see good rises.
Using Precious Metals as a Passive Income…
Towards the end of June I wrote a post about a programme that was introduced to me by one of our readers, Don Mills. The programme, Imperia Invest is still going well and Don has been busy unearthing another opportunity that he wanted me to learn about.
This one, Jvothi Futures is based in Dubai and focuses on trading precious metals at the Dubai Gold & Commodities Exchange. The return varies between 7 and 9% per week and your money is tied up for 150 days. So, if you were to invest $1,000 then after the 150 days you would receive returns between $1,500 and $1,930 if you choose not to compound. This way you could make withdrawals on a weekly basis. If you select the compounding option then the potential returns increase to between $3,200 and $5,300.
They use Egold as a way to invest if you choose not to compound and provide a list of exchangers that you can work with. However, if you choose the compounding option then there are several other payment methods including e-bullion currency and gold, pecunix, c-gold and v-money. They are looking at introducing bank wires, western union, moneygram and paypal in the future.
Minimum deposit is $50 with the maximum being $10,000,000 (probably covers most of us I think!).
There is a lot of information on the site and one page that I found of interest is the one that deals with the Trading System. As I’ve said in many previous posts I’m a big fan of precious metals and if you do not feel comfortable in purchasing the metal yourself Jvothi Futures is a good way take advantage of the value that can be realised in this form of investment.
Finally, if you haven’t yet tried Don’s first recommendation, Imperia Invest then now is a good time as it offers great value for a very affordable $50 investment.
Take ownership of Precious Metals…
Dr. Russell McDougal is someone who knows what he is talking about when it comes to commodities. He has dedicated years of study and investing in the natural resources exploration sector. During that time he has closed out DOZENS of gains of 500%… 1,000%… 2,000% and more! Currently he is sitting on multiple thousand percent winners, including one stock that is up a whopping +5,000%.
So, when I read the latest article by Russell in today’s Investors Daily Edge I was very pleased to see that he is trumpeting the need to hold physical gold and silver as part of a portfolio. He, as many other commentators, believes that the US policy of printing more money is a road to inevitable disaster. Holding physical quantities of gold and silver provides some defence against the problems to come.
He recommends buying metal in the form of coins where you pay a premium over the spot price but this should easily be compensated for as the value of the underlying metal rises.
Interestingly he makes the point that the current price of precious metals is being manipulated by the market to keep it low. Future predictions see the price rise significantly as the currency woes unwind even further. I’m probably beginning to sound a bit like a broken record about this subject but I feel that everyone should hold some gold and silver in their portfolio (actually I hardly have what could be called a portfolio, more a varied collection of investments that I hope will flourish when I need the funds!).
I purchase gold from BullionVault where your metal is held in vaults of your choice (London, Zurich or New York). As this is a way to buy gold directly the cost is very competitive and you can rest easily knowing that your investment is held securely. I prefer this over buying coins for two reasons. Firstly I don’t have to worry about keeping them safe and secondly the price I pay is less than I would have to pay for the equivalent amount of gold in coins.
To my knowledge there isn’t a similar service for silver bullion so I have to purchase coins. Again, this is done on a monthly basis and my collection is beginning to grow nicely.
So, it’s good to note that my liking for precious metal is endorsed by an expert in the field. I’d encourage you to read the article as it contains some very useful insights into why precious metal should be a key element in your investment strategy. I’d also recommend signing-up for the Investors Daily Edge daily newsletter as it provides an excellent source of reference for anyone interested in learning about investing in a range of markets.
Referral Post 003 – Diamonds can be an investors best friend…
We often hear talk of diversification as a way of reducing risk and creating a sustainable investment portfolio. I’m keen on this strategy and think there is much to be gained by following it. Clearly there are many ways to diversify, one which I like is to have something precious. In the past I’ve mentioned that I invest in gold and silver as they both represent good hedges against the devaluation of currency that is continually happening.
One of the great attractions for me about gold and silver is that there is a finite supply (to all intents and purposes) so as demand increases and supply diminishes the values of these metals should rise. Increasingly there are reports that miners are having to go deeper and increase capital expenditure to find more precious metals and as investors this can only be good news.
Somewhat in a similar vein I’m now looking at investments in precious gems such as rubies, sapphires, opals and more specifically diamonds. Again, the law of supply and demand should figure highly in ensuring that values increase over time. Now whilst it’s fairly easy to buy gems set in rings, brooches or pendants this does mean that much of the intrinsic value is lost as they are already ‘worked’. It would be better to own the raw gems themselves as this then provides a way to trade them in the future.
One investment that I’ve recently joined is Diamond Cash Club as they provide a way to own gems and diamonds. The principle of this offer is based on a matrix structure where you only need two people in your downline to be successful. To help new members recruit it’s advisable to join an organised team as they help to recruit the downline you need. I’ve joined theDCCTeam as they are very active and have created a very supportive environment for building membership.
So, how does it work. Well the cost to join Diamond Cash Club is $220 which splits $200 for a gemstone voucher and $20 for administration fees. The good thing is that the gemstone voucher which costs you $200 is actually worth $300 retail which you can redeem online at the approved gemstore linked to the site.
When you purchase a gemstone voucher you join a matrix where you should be looking to sponsor just 2 other people. When you achieve this you will be able to progress through the matrix. As I mentioned it’s advisable to join a team such as DCCTeam as they will help you to obtain the two sign-ups if you need them to.
As you go through the various matrix levels you will cycle out until you reach the diamond level where you will receive $8000 and a $6000 diamond. So, for an initial investment of just $220 there is great scope to achieve both a great financial return and own a diamond as well. It’s worth saying that once you cycle out of the Diamond level you will be re-entered to begin the cycle again.
