The Silver Price Will Explode!

December 2, 2009 by  
Filed under Futures and Commodities

The silver price will explode in the coming years, and if you are not positioned you will lose out big time. The demand for silver is soaring, and China recently announced the legal ownership of silver to its citizens. Countries, industry, and investors are starting to put an increased strain on the already strained silver market.

Silver is an industrial metal as well as a monetary metal. Industrial uses for silver are growing at an exponential rate. Since silver is used in solar panels, water filters, medical applications, electronics, and more, the demand for silver is at record highs. Silver is not recycled like gold either, but is thrown away into land fills to never be seen again.

The silver price is rising higher due to the investor demand along with a severe shortage situation. Our government has been busy suppressing the price of silver, illegally, to falsely prop the dollar up. Buying silver coins, silver bars, silver bullion, and silver stocks will be the smartest decision you ever make financially.

Economist Bob Chapman has stated that gold will go anywhere between $7,000 and $12,000 per ounce. Silver follows right along with gold in any price movements. You are going to get slaughtered if you stay in dollar related assets. If you are invested in stocks, bonds, cash value insurance policies, annuities, and anything denominated in U.S. dollars, you should get out of them while the market is still high.

The silver to gold ratio is historically 15:1, but today that ratio fluctuates between 60 and 70. The silver to gold ratio is how many ounces of silver it takes to buy one ounce of gold. The silver to gold ratio is out of wack because our government has intervened in the markets and is suppressing the price of silver.

The price of silver is held down by manipulation on the COMEX. JP Morgan and HSBC are the major short sellers of silver, and they are illegally over their position limits by thousands of contracts. The short sellers are illegally controlling the price, but the physical demand surfacing will soon end any price manipulation, and the price of silver will go bananas when that happens.

These banks are taking out huge positions on silver and selling those contracts on the market, thus flooding the market with silver and bringing the price down. The organization GATA (Gold Anti Trust Action) Committee are in the process of bringing this manipulation to an end. When this manipulation is stopped, get ready for silver to skyrocket to its true value, which could be anywhere from $140 to higher than the gold price according to many experts.

These banks continue their illegal activities, even though they are way over their allowable position limits. The manipulation I am talking about will come to an end, investors in silver must be patient though. The COMEX has already defaulted on customers wanting physical delivery of their gold contracts, which begs the question “Do they even have the gold they claim to have?”

Just a tiny amount of investors buying silver would send the price sky high. The market is so small, and when people realize that this fake market rally is a reality, they will do all they can to buy into silver. The market will get away from you if you are not positioned because of the tiny size of the market. The greatest bull market is under way right now. Do yourself and your family a favor and get into silver ASAP.

God bless.

Bank Reserves Lend Many Reasons to Bank on Silver

December 2, 2009 by  
Filed under Futures and Commodities

One of the largest drivers of silver prices, inflation is already showing itself. After the collapse of Lehman Brothers, the US central bank took dramatic steps to curb any future price decline in housing, commodities, and stocks – but the effort was purely inflationary.

What Happened?

As Troubled Asset Relief Program (TARP) funds were distributed to major banks to avert crisis, Lehman Brothers was one of the few banks left behind. It seemed as though the company would be given a bailout, especially as one of the larger investment banks in the United States, but the Fed and Congress decided it would not be worth saving.

The Fed’s Reaction

Surprisingly enough, the largest action to stop banks from going under was completed not before, but after Lehman had failed. In less than 112 days, the Federal Reserve doubled the amount of money banks had on reserve through loans, swaps for collateral, and other cash for troubled assets agreements.

It is important to note that these bank reserves are not just rainy day funds cast aside in case banks need to tap them; rather, bank reserves are at the forefront of lending within the US. Under a system of fractional-reserve banking, banks are legally required to have at least 10% of their assets in reserve, and many operate very closely to this legal threshold.

Why Reserves Are Important

By doubling the amount of reserves banks have on hand, the Federal Reserve effectively doubled the lending power of each bank. The monetary base (M0 money supply) increased from $900 billion to more than $1.8 trillion, allowing banks to effectively expand the M2 money supply from what was around $8 trillion to $18 trillion, thus creating 125% inflation over the course of many months.

We must recognize how dramatically the Fed tipped the scale. Prior to the collapse of Lehman Brothers, it took the Fed nearly 14 years to double the monetary base – meaning the post-Lehman increase was nearly 40 times faster than before.

What Does Inflation Mean For Silver?

Much of the trickle effect from bank reserves to the economy is dependent on a slight rebound in economic activity. Once banks are again willing to lend, they have the capacity to literally create as much as $10 trillion. This would increase the money supply by 125% and certainly cause wide scale price inflation. For silver, this is nothing but a bullish signal, with precious metals remaining an investor favorite against untimely inflation.

Historical References

One of the greatest expansions of the money supply led to one of the biggest stock market bubbles in history. The stock market rally coming out of the 1987 crash was one of the most ferocious in history. However, most of the rally was only phony money, printed up by an easing of credit following the very much localized real estate bubble of the early 1990s. After the market realized that the rally wasn’t built on much besides an easing of credit and venture capital investments into dot coms, the market faltered – all the while gold and silver prices soared as stocks dipped.

The present economic situation is very much like that of the early 1990s, though stocks still haven’t found much of a reason to budge.

Recession Investing

December 1, 2009 by  
Filed under Futures and Commodities

The ongoing recession has taken its toll on many. Companies are shutting down and a lot of industries are falling like a pack of cards. A lot of people find themselves without a job and are forced to foreclose their homes. Many more have money but do not know how best to invest in the current situation. The ailing economy will take a long time to turn around and in the meanwhile it is important to get the money moving by choosing effective recession investing options.

As the economy of the country flounders in recession, a lot of people with money are on the lookout for investment ideas that are profitable as well as safe. Though the majority of industries are facing the brunt of recession, there are many investment options that are profitable and lucrative. The trick is to identify the right opportunity and know exactly how to look for the silver lining in the cloud. It is greatly heartening to know that many of the prosperous and wealthy businessmen have made their money during recession.
Here are a few investment ideas during recession that can help your survive and thrive. A lot of people offer advice and tips on this issue.

Bonds offered by Government – Government bonds such as the treasury bills offered by the US Government are sure to rise in value. Government bonds are also less risky than any other investment option and are the safest bet even if they offer lower returns.

Forex – The Forex market is well known to be recession proof. Trading in Forex requires nothing but a computer and an internet connection apart from a few other tools. Millions of people from around the world trade in Forex which is the largest market in the world. This opportunity offers even novices an excellent opportunity to make money and gain financial independence.

Investing in Precious Metals – Precious metals are not very much affected by economy fluctuations. Investing in silver and gold is thus an excellent and safe investment option. In fact, according to experts, precious metals such as gold and silver can even provide great returns and help during crisis.
Real Estate – Yes YOU READ CORRECTLY, there’s never been a better time to invest in real estate. Interest rates are low and housing prices are even lower. There are experts out there who know exactly how to take advantage of this down market and we suggest you find one.

If you are good at speculating, you can invest in shares. It is very important choosing to invest in areas that are not really affected by recession. For example, British supermarket Tesco is doing extremely well and has announced a profit of £3.13 billion. By researching and investing in such companies, it is possible to enhance your money making opportunities.

Corporate bonds offer high returns but also come with high risk. These bonds are sold to the public by companies which are struggling and want to stay in business.

These are a few ideas that can help with careful leveraging of opportunities for investment and surviving during recession.

A Beginner’s Guide to Private Equity

December 1, 2009 by  
Filed under Futures and Commodities

The business of private equity is one that has been in the headlines for some time now – coming under the public spotlight even more since the beginning of the recession. In this article we shall discuss how these firms operate, and how they make their rather substantial profits.

Let’s begin by outlining what exactly private equity is. These companies are in essence investment companies. Their actual name relates to the methods they use to accrue enough money to invest. They do not go to the stock market and sell shares; instead they obtain their monies from private individuals – these sources are often funds for pensions or individuals with a substantial amount of wealth.

With the money they have borrowed and obtained, they buy firms that have previously been identified as not performing as well as they might. The aim is to turn these firms around and generate a profit. Once the company has started being profitable, the company will in all likelihood be sold on to another investor/buyer. It is thought that nearly 30,000 companies have been invested in by the private equity industry – amounting to around 80 billion pounds in all – since 1983.

Some people might ask – are these buy outs actually a positive thing? As far as the government is concerned, the process of private equity is a very positive thing, as it arguably helps to create jobs with speed and contributes high tax revenues to the treasury’s coffers. The private equity firms themselves point out that they improve the performance of UK companies with stronger management and market discipline.

On the downside, these investment firms sometimes have to make difficult decisions – such as laying workers off; there might be a profitable part of a business, and an unprofitable part – the one losing money might see job losses. These eventualities can make these kinds of firms unpopular in the eyes of the powerful press and therefore the population at large.

This asset stripping is not popular – but the firms say they need to make drastic decisions in order to make the given company profitable again. People in opposition to private equity say that the business has unfair perks in terms of taxation – the central focus of this concern if the taxation process termed ‘carry’.

Overall, private equity businesses are a central part of the UK economy and are unlikely to disappear. In the current economic climate they are likely to be a growing feature of the nation’s economy.

Announcing 3 Low Risk Strategies to Help You Escape the Rat Race

December 1, 2009 by  
Filed under Futures and Commodities

The beloved rat race! Just why would anyone want to escape the rat race? Many reasons come to mind but some of the key ones would have to be to work for yourself, be your own boss, have the freedom to do what you want, when you want, whenever you want and most importantly live a millionaires lifestyle without even needing to become one. Spend more time with your family, go on holidays whenever you want and have the flexibility to work the hours that suit you. These are just some of the reasons why you might want to sack your boss and start living the life you’ve always dreamt of.

1. Real Estate. The trick to real estate investing is to focus on capital growth, rather than rental returns. Over a long term period utilizing this type of strategy will win every time compared against an income strategy in property. If you had an investment property with a high income yield but limited potential for capital growth, sure, you might make a profit in the short term but in the long term the rental income you would receive on a property with capital growth potential will always overtake the other. This is because rental yield is calculated on the properties overall value. If the value of the property increases, so to does the rental income. One too many people think they’ll never be able to afford a property without really exploring their options. You might just surprised of the opportunities that are out there if you only take the time to look.

2. Home Business. A potentially quicker alternative to escaping the rat race is by starting your own home business. If you can find a home business model that really supports you growing your business and provides long term support and mentoring you might be able to leave your day job in less than 6 months. It ultimately depends how much you want it, but be wary, there are many home business models out there that are purely aimed at making the people at the top richer. Usually in detriment to the people that come on board later on. An example of this type of business is multi-level marketing (MLM) otherwise known as pyramid selling. If you’re looking into starting your own home based business make sure you do your research before making any type of investment decision.

3. Writing options. Contrary to what the media may have you believe, writing or selling options is actually a relatively low risk strategy. The opposite to trading options which can be a high risk strategy, writing options allows you to sell an option to the people who are trading options. Using this strategy, you can generate a monthly income anywhere from 2% to 5% per month and even higher sometimes. Writing covered calls is one form of income generation you can use to reduce the amount of time you need to spend working a day job. In it’s simplest form think of it like renting your shares to someone else in return for a monthly rental premium.

Time For Online Investing to Change and Demonstrate Credibility to Individual Investors

December 1, 2009 by  
Filed under Futures and Commodities

For online investing to be treated seriously as a viable option the companies involved need to demonstrate commitment to investors.

When online investment programmes first started they quickly gained a bad reputation as many of them were revealed as scams. This severely damaged the public view of these opportunities and that perception still exists.

I believe it is time for things to change. The global economic crisis has shown that even well respected financial institutions cared little for their small investors with the result that interest rates on savings accounts are now derisory.

This is a golden opportunity for online investing companies to attract these disillusioned people but they must do it in a credible and honest way.

Is regulation the answer?

Nearly all online investments make it abundantly clear that their dealings fall outside any existing regulatory framework as they want to avoid members running to the authorities at the merest hint of a problem.

There are many horror stories where online investment companies have fallen foul of regulators (especially in the US) and the result has virtually always been losses for investors. So, I don’t believe online investing companies would currently welcome regulation under current legislation. Ultimately, this may be an aspiration as authorities learn and understand more about how these companies work.

Where to Start

So if formal regulation isn’t viable what alternatives exist? Some companies may argue that their industry is currently being regulated by the myriad of online monitoring sites as these demonstrate whether programmes are paying or not.

Personally I don’t believe this is the answer as monitoring sites can only work in a reactive way and are not that useful for predicting whether an opportunity is viable to start off with.

To my way of thinking there are two options to consider:

  1. An independent group of investors could be set up to undertake due diligence on a programme that wishes to offer online investing services. They would need access to the company to be able to verify the claims that are being made on how funds are generated and the people involved
  2. A self regulating body set up by the companies themselves which would define a code of practice that companies would need to adhere to if they wish to join. This should also include investor representatives as this is a key element of trust building

Time for Change

For too long online investors have suffered poor service, patchy communication and untrustworthy programme administrators. As I look at some of the online programmes today I can see that things are changing but we are still not at a point where the ordinary investor would consider an online investment as a viable alternative to basic savings accounts for example.

Clearly there will always be greater risk involved in online investments but I don’t think programmes should hide behind that as an excuse for poor service. If the risks are explained fully and clearly, if programmes communicate often and honestly then I believe the industry would reap great rewards both in terms of their own reputations but also in the number of people that would trust them with their investments.

Isn’t it time online investors were offered a better and more reliable service…

The Grave Danger of “Paper” Metals

December 1, 2009 by  
Filed under Futures and Commodities

Currently being investigated by the Commodity Futures Trading Commission, the silver futures market is heavily manipulated. In fact, some analysts think investment banks have actually sold more silver short than the quantity that actually exists above the surface of the earth!

Naked Short Selling

Naked short selling is present in both the futures and stock markets. While naked short selling is shunned, investment banks have literally made billions by artificially driving down stock and futures prices by selling more of the stock or futures than actually exists. This way, they can sell the product now, and then buy it back at a guaranteed lower price, as they have already flooded the market with phantom silver.

Futures Market Madness

Most silver is traded on the futures market, where buyers and seller meet to exchange cash for silver at a predetermined price and time in the future. Much of this silver is kept in storage in bank vaults and in the custody of market makers, who likely never physically transact their own silver. Instead, speculators buy and sell silver that no one is sure really exists. Believe it or not, an investment bank can claim they have millions upon millions of ounces and place them up for sale – all without proving that they can make delivery.

Dilution of Value

Theoretically, there is only X amount of silver being demanded by investors and only X amount of silver in the supply. However, in the futures market, the amount of silver can expand by virtue of a market maker selling future positions, hoping to buy the metal in the future at a lower price.

This is very much equivalent to the derivatives market, or a paper market, that has grown to ten times the output of the world simply by leveraging assets that may or may not be able to back up the bets.

Avoiding Metallic Paper

Physical metals are the only true way to ensure that you actually have the precious metals you wish to own. Even companies that offer storage of your gold or silver may be floating some of the exposure on the markets, and there have been many instances where storage firms oversell their inventory.

Luckily, with silver coins, you’re able to see, hold and touch your own investment and know that you have as much silver as you purchased. This same fact does not hold true for other silver investments, which may offer exposure to silver, but have no tangible ties to the metal itself.

Silver’s Big Move

After the CTFC completes its investigation into the silver markets and the amount of silver is quantified, investors will finally know how much silver is actually available on the market for delivery. It is certain that the amount of real, physical silver in existence is much lower than what is quoted on the futures market. This discovery could generate one of the biggest movements in silver prices, as all of the money invested in paper silver will be forced to be reallocated to physical stocks of the metal.

Of course, there are many choices which type of physical silver is best for investing. Many find that pre-1965 advantageous for their low premiums and their relative barter safety.

Trading Oil For Major Profit

December 1, 2009 by  
Filed under Futures and Commodities

If you are an investor or are searching for something to invest your capital in that will truly bestow you a advantageous ROI as well as let you to sleep happily without stressing out regarding your money being lost in an the blink of an eye you should honestly consdier trading oil. Did you know that around 95% of people who get involved with financial trading lose a lot of money?

There are so many investing websites that are more interested in their bottom line, than your’s. Forex is very popular these days and it is one of those businesses where the vendors are building fortunes despite the fact that the people trading are losing more and more capital by the day. I want my trading account balance to escalate, not just the system vendor’s bank account.

That is why future oil trading is one of the most excellent investment opportunities around for any major investor or small-time trader. You can trade oil from any place in the world with a free price feed starting with merely $300 capital or more.

The greatest thing about the oil trading business, is that there are simple to follow, precise rules with no repainting and if you follow them you can double your capital (or even more) every single month when the trading conditions are respectable. There is only one thing to trade, so it is a lot less complicated than other trading instruments.

With oil trading, you can profit from declining prices, just as easily as you can from rising prices. There are stop loss functions (like with Forex) that let you to cap your losses and by no means lose more capital than you are ready to endanger or can spare.

There are so many advantages to trading oil that it would be tough to discuss them all now. Take it from a seasoned investor… trading oil is the way to go.

How to Buy Gold Bullion

December 1, 2009 by  
Filed under Futures and Commodities

There are several reasons why someone would want to buy gold bullion; to trade, as investment or as security against currency fluctuations. Whatever the reason you need to make sure that when it comes to buying and selling the commodity you know what you are doing. There are too many crooks out there who will take advantage of beginners so it is necessary to know the basics before you jump into the market.

There are two ways that most people buy gold and which one you pick depends on how much gold bullion you will be buying.

Hire A Dealer

If you have a large amount of money you wish to invest in gold bullion then you may want to think about hiring a dealer, especially if you will not be spending your own time studying the market. A dealer makes it their first priority to look for any dramatic changes in the gold market, try to get the best deals available and build a network of contacts with whom you can buy, sell and store your commodity with.

There are two ways in which most dealers prefer to be paid; they might choose to charge an hourly rate so that every minute they spend working for you is charged or they may wish to share in the profits that your gold makes. The latter is not so popular at the moment because of the uncertainty in the economy.

Go Through A Commercial Seller

If you have a smaller amount of money that you wish to buy gold with then the best solution is to use a commercial trader. These are companies which specialise in buying and selling large quantities of gold bullion and selling it at market value. They make their money by buying in bulk and getting large discounts or finding sellers who want a quick sale for less profit.

You can often negotiate a price with these commercial sellers as the value of gold bullion does not stay the same for very long. You need to choose whether you would prefer to invest in gold bullion bars or coins but again this is down to personal preference.

Store Securely

If you are a large gold bullion trader then the chances are you will be paying for a private storage vault either at a bank or specialist storage facility. Sometimes gold is traded and never actually changes hands but again this is only when the quantity is very big and the two parties are frequent traders.

Otherwise, you will need to find somewhere to store your gold that will not put you in danger from burglary. Do not store the gold at your home as it can increase the risk of theft and break-in. You can get in touch with your bank to see if they have storage facilities or you should get online to find one near you. The broker that you bought the gold off will probably have a secure storage service at an extra charge and this is likely to be highly protected because it is where they will store their gold as well.

Keep these basics in mind when you decide that you want to use some of your money to invest in the commodity of gold bullion. Do not rush into a purchase without checking the seller’s credentials, the current price of gold and your storage choices otherwise you may be left high and dry and missing thousands of pounds of your hard earned cash.

How Online Investing Can Help Solve Your Xmas Gift Difficulties

November 30, 2009 by  
Filed under Futures and Commodities

“It’s comin’ on Christmas they’re cuttin’ down trees…”

The opening line of Joni Mitchell’s song River reproduced here conjures up for me the true feeling of the season. It’s not a typical Christmas song but for me it evokes the true Christmas spirit, a time to look forward to and to share in the earth’s bounty.

Of course it also means the giving and receiving of gifts and that’s what I’d like to concentrate on, at least the giving part.

When you find yourself stuck for ideas why not take a leaf out of Bob’s book and use online investing to help share the joy of Christmas. Bob has a dilemma. He is unsatisfied with giving the usual presents to his family so decides this year to be a little more creative and put a real smile on his family’s face.

Firstly there are the two kids, Jack who is 18 and Ann who is 22. Like his sister before him Jack has just started a three year course at university and he is full of the promise it holds and is actively participating in the social life as well. One thing he isn’t thinking about is the student loan that he receives to see him through his course. This will leave him with a sizable debt when he graduates.

Ann, on the other hand has already graduated and with some careful budgeting and some part time work she has left University with a relatively manageable loan outstanding. The problem is the recession has severely curtailed any job opportunities and she is struggling to start the career in business that she was hoping to. This has prompted her to travel, so for the whole of next year she is off to follow the path taken by many others and see the world. When she returns hopefully the job market will be better. Then she might think about settling down and buying her first property.

So, how can Bob help? Looking at the investments he has he decides to invest $50 on behalf of each of them in a CashTanker account. This pays 2% a day and as the money won’t be needed straight away Bob opts for 100% compounding. The programme is due to close on December 25 2011 so assuming 220 business days a year and 440 days in total the return for each of his offspring would be over $300K. This should be more than enough to clear Jack’s student loan and also help Ann put a deposit down on a property, although secretly Bob hopes that Ann will just rent a property and use the funds to start her own business as they’ve discussed in the past (Bob’s wife, Judy is keener on the property purchase).

Bob and Judy have been married for 25 years and whilst Judy has not always had the faith in online investing that Bob has she suffers his ventures gladly hoping for a profitable outturn. Bob wants to thank Judy for all her support so decides that he will invest $50 in a Traded Endowment Policy with Imperia Invest. He knows these are available until 01 February 2010 and are scheduled to payout the $134,000 return in the middle of 2010. This would allow Judy to really spoil herself. With another $50 he decides to open an account at Sport Arbs. This has a variable return but is usually at least 2% a day minimum. As they trade 7 days a week the growth could be significant and will provide an nice nest egg for the future.

Lastly Bob has to think about his parents, Terry and Liz. They are both recently retired and whilst they have made reasonable allowance for their day to day living it’s unlikely their funds will provide them with a luxurious lifestyle. Bob appreciates all the sacrifices his parents have made over the years on his behalf and feels that he would like to provide enough funds to help them spoil themselves from time to time. Perhaps a meal at a top restaurant or the odd weekend away in a nice hotel. Looking at the opportunities available he feels that PTV Partner offer the ideal solution. He decides to invest $200 on behalf of his parents in their 40 day plan that pays 190% return. So, every 40 days they will receive $380. It will be easy for them to save up for the odd month or two so that they can easily afford those odd luxuries now and again.

As Bob sits back in his armchair he is pleased with his plans and knows that his family will definitely remember this Christmas for years to come.

Postscript: Of course we shouldn’t forget that any income received may be subject to tax so don’t forget that if you have similar plans to Bob. Take some advice from a good tax accountant.

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