Factors Affecting Gold Price

By Prashanthi R   

 

Price of 24 karat gold are determined by various factors such as season, world market, inflation, demand and supply etc. Price of gold coins are generally higher because of the high inflation. There are many factors that influence the price of 24 karats gold in India, and before we discuss about it, let us clarify the difference between "value" and "price" of gold coin. The price is the amount of money you pay when you buy a coin. On the other hand, value is the money you get when you sell it.

Seasonality: Prices of gold coins depend on the season. Usually, they are high during November - December and during the spring season. During festivals such as Diwali, Akshaya Tritiya, Ramzan etc., most of the jewelry stores offer sales and discounts. It is the best time to invest in gold as you get high discounts on the price tag.

Bad Economic Climate: Economic crisis will increase the price of gold, while a stabilized situation could steady the price of gold as well. The cost of gold is greatly influenced by other market factors also.

Demand and Supply: With its huge tradition and culture of buying and saving gold, India is responsible for 27% of the demand for gold in the world. Countries such as Brazil and China are entering into the gold market. As the demand for this precious metal increases, its price also increases proportionately.

Inflation: In India price of gold coins are greatly swayed by inflation. Gold is thought to be an inflation hedge. So, when inflation increases more and more, people try to lock their money in gold. This demand for gold in turn increases its price. If the inflation decreases, gold prices will reduce proportionately.

Collector's Coin: If you are into buying mint or bullion coins, then other factors like demand and supply influence its price. The rarer the coin, the higher will be its price tag. If a particular vintage coin is in demand, then its rate will be pretty high. Another factor that influences the price of collector's coins is the supply maintained by the dealer. If the dealer has more coins, then he would sell them for less, while a limited supply could increase the price. Another feature that influences the price is the grade or condition of the coin. Uncirculated coins in mint condition are very rare, therefore costlier than coins in circulation.

Before you buy gold coins, checkout the price of the day. There are numerous gold saving schemes that let you to lock your purchase for a particular amount. You can also browse e-stores to pick gold coins in a variety of styles and designs.

Recap:
Make sure you get all the information about the quality and purity of the 24 Karat Gold Price. One should be careful while purchasing in online, especially when you buy 24 Kt Gold Coins. Click here to Buy Gold Coins with 100% guaranteed purity Online.

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The Future Of Online Day Trading

By Michael Freemann

 

The stock Market was never a 'Get Rich Quick' possibility for those of us who lack a good starting capital. Most funds and savings accounts yield us %4 to %7 which barely keeps up with the overall economic inflation. Based on the math, it's not worth investing in the Stock Market without at least $100,000 if you want to actually generate a yearly income from your investment. The solution is not 'Over The Counter' Stock Market Trading for those of us with a low starting capital.

The incredible Technological Advancements we're seeing in the last 20 years are taking on many new forms from booking our flight tickets and all the way to Online Trading. Don't get me wrong, by online trading I don't mean your online banking portal and I also don't mean Forex Currency Trading.

How about an online interface that lets you trade any asset, from Oil to the Google Stock and better yet, for what ever price you decide! Binary Option Trading is the newest innovation, allowing us to trade from the comfort of our home and even our smart phone.

In simple words, Binary Options are a digital up/down prediction made on an asset's price direction once it expires after an hour. The payout is determined in advance and ranges between %60 to %80 if your prediction lands 'In The Money' and the price of the asset moves in your direction and a %15 to %0 refund if the asset expires 'Out Of The Money'. A great example can be used with the Google Option as unlike with the stock market, with Binary Options you get to decide the investment amount. An investor can set the expiry time for an hour, a week or a month and invest $100 on the Google Option predicting the price will increase/decrease by the end of the hour and if the price expires 'In The Money', the payout of $160 to $180 is instant!

Binary Option trading doesn't require software, downloads or any usage fees. In fact, anyone can simply create a trading account and start trading online or via mobile application. The different Binary Option Brokers will offer different payouts, therefore it's important to compare the payouts and make sure we are getting more money with each of our online trades. Many resources are available to help anyone who is starting with Binary Option get familiar with how to go about trading, as many YouTube video tutorials, Binary Options live trades, free lectures and articles are out there with lots of great information to help us develop a trading strategy and engage in this trade wisely.

Binary Option Investment is an opportunity for anyone with as low as $100 to make high profits within a short time. It's also recommended for anyone who is entering high risk trading to start with smaller amounts and the confidence it build to start trading big. The solution is now available, now we can Day Trade during a traffic stop or during our break at work, it's definitely one of the most exciting innovation in the world of trading.

Visit Mike's Binary Option YouTube Channel & Blog

1) http://binaryoptions101.blog.com

2) https://www.youtube.com/channel/UCng9TTPFoXAt-GI4ZUmF-JQ

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Would You Like to Start Investing in Gold?

By Cookie Maxwell

 

Throughout history, people have been purchasing gold as an investment. In fact, of all the precious metals, gold has always been the most popular. There are many reasons why people have pursued stockpiling gold as a way to invest over other forms of investment. Some people invest in it because it is tangible. Even if your paper money loses all of its value, history has shown that gold does not. It is also an acceptable currency globally, because you are not stuck to a specific country or region with this kind of investment. If you are considering investing in gold, here are a few ways to get in the market.

Scrap Gold
Gold has been so popular throughout fluctuations of the economy that investing in scrap is a less expensive and low risk way to get yourself in the market. There is nothing complicated about investing in scrap gold. Search your house for broken jewelry, orphan earrings, and anything no one needs anymore. Ask friends and families if they have anything like that in their own homes. Sell what you have through classified ads and Internet auctions.

Gold Bullion
Popular as a way to weather any financial instability, gold bullion can be purchased in the following forms: coins, bars and jewelry. Gold coins usually have the highest value because they are sought after for the value of their gold and by coin collectors as antiques. Gold bars are usually sold 99.5 to 99.9 fine from popular gold refineries. There will be a stamp naming the refinery on the bottom of the bar. Gold jewelry can be a more expensive route since you are paying for artistry and craft work as well as for the gold itself.

Gold Futures
If you are willing to take on more risk, investing in gold futures is taking a gamble on what you believe gold will be worth in the future. To trade in futures, you need to open a futures account with a firm that deals in commodity trading. This type of trading will allow you control a higher value of gold than you have in cash. If you choose to go this route, make sure not to invest more than you are willing to lose. There is also an option to purchase a gold futures contract if you are investing in futures. These are legally binding agreements for the delivery of gold in the future at an agreed upon price. You need to wait for the contract to end to determine your gains or losses. Keep in mind that the commodities trading firms charge a commission fee with every trade.

MyReviewsnow.net offers information regarding investing in gold. For more on investing in precious metals, please shop at MyReviewsNow.net

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Forex Options Trading for Hedging Currency Risk

By Nelly Naneva

 

Currency risk is part of the financial risks associated with adverse movement in the exchange rate of a particular currency relative to another. As compared to investments in local assets, the fluctuating foreign exchange rates represent an extra risk factor for traders who want to protect their portfolios. The control and management of foreign exchange risk is part of business management. One generally accepted method for hedging currency risk is the Forex options trading. This article reviews the practices of currency risk hedging and their efficiency to control foreign exchange risk through Forex options trading. (Hedging is any action or a set of activities, aiming reduction or neutralization of identified potential risks.)

The use of Forex options trading for exchange-rate risk management is widespread in developed economies and a routine part of the business of financial institutions and companies. By its nature, the currency option differs from the other types of options by its economic function; it hedges the exchange-rate risk and the underlying asset is a particular currency or set of currencies.

Options are derivatives, they derive its price from the value of a particular underlying security, currency or commodity. Forex Options trading are an agreement that gives the buyer the right, but not the obligation, to buy or sell the underlying asset (currency) at a strike price on or before a predefined future date when the option expires. In legal essence, the Forex options trading are provisional and fixed-term transactions. The deal is conditional, because it becomes effective only if the buyer desires. It is also a fixed-term agreement, because its execution is at some time in the future. Currency option is a financial asset like shares or bonds and forms a legally binding agreement between two parties with strictly defined terms and conditions.

There are two basic types of options. The buyer of a Call option owns the right, but not the obligation to buy the base asset on or before specified date at an agreed-on price. Put option confers the holder the right, but not the obligation to sell the underlying asset on or before expiration date (depending on the style of option) for a specified price. Each option contract is a legally binding agreement between two counterparts. On the one side is the buyer of the option who takes "long position." On the other side of the agreement is the seller (issuer) who issues the option and takes the so-called "short position." The seller normally receives from the buyer a specific monetary compensation, named "premium" for the underwriting; at the same time he takes in practice unlimited risk of adverse price movements of the underlying asset.

The strike price is the agreed-on price, at which investors buy or sell options (also "exercise price".) The holder of an American-Style option may exercise his right to sell or buy the asset at any time before the end date. The owner of a European-Style option exercises it at the expiration date only. Options are both exchange-traded and OTC traded financial instruments. They are suitable for hedging and speculative purposes in both upside and downside price movements of the underlying assets by diverse options trading strategies.

When an investor determines a particular type of risk can affect his business, he may decide to protect himself against the particular risk by becoming a party to options contract. A European importer of goods from the United States, apprehending of eventual rise of the dollar and increased delivery costs, could decide to fix the U.S. Dollar to EUR buying a call option. Let us assume that the U.S. Dollar falls at the date of purchase. In such case, the importer will lose only the premium paid for buying the option. However, if the U.S. Dollar rises steadily, the value of the option will also go up thus compensating the increased value of the delivery denominated in EUR.

The derivative contract leads to financial result, just the opposite of the result generated by the risk.

When the market price of the hedged currency falls, the value of the derivative contract increases, and vice versa. Although most participants on the derivative market use these instruments for hedging purposes, the companies often trade derivatives for speculation: aiming to generate profits for when of favorable price movements.

Let us assume a Great Britain company expects to receive $ 420,000 after three months and must exchange the US Dollars to Pounds (USD/GB). The current exchange rate is 1 = $ 1.50. The company anticipates revenue of 280,000 (420,0001.50), but the conversion rate of US Dollar to Pound Sterling may move up or down at maturity. During the three-month period, the firm takes the risk of an adverse movement of exchange rates, unless it decides to take some measures to hedge the currency risk.

• If the exchange rate at maturity of the obligation is 1 = $ 1.60, the revenue in GB will be only 262,500, 17,500 fewer than initially expected and the financial result will be a loss as a result of exchange rate impact. If the company finds the risk acceptable, it may do nothing. In case it decides to hedge the potential currency risk, the firm can buy a put option to sell $ 420,000 against GB at executive price of 1 = $ 1.50. This means the seller of the option will need to buy the dollars for 280,000.

• If the exchange rate in three months is 1 = $ 1.40, the revenue of the company in Pound Sterling will be 300,000 (420,0001.40), i.e. with 20,000 more than expected. This way the company profits as a result of foreign exchange rate movements. In such a situation, the option will expire worthless and the company will lose only the premium paid for the purchase of the option.

Currency options trading are widely used investment tools for management and protection against currency risk. Forex options trading makes future risks negotiable; it leads to removal of uncertainty through the exchange of foreign currency risks.

The investors and financial institutions use Forex options trading as insurance against undesired price fluctuations, which in turn leads to more reliable forecasts, lower capital requirements, and higher productivity. Besides, Forex options trading provide protection against currency risk with minimal investment and consumption of capital at exceptionally high adaptability of the contractual terms and conditions. Forex options trading also allows investors to deal with future price expectations, purchasing a derivatives instead of the base security at a very low transaction price in comparison with direct investment in the underlying asset. In addition to hedging currency risks, currency options are also proper instruments for exchange-rate speculations.

Nelly Naneva works as CEO of the Financial Institution Freetrade JSC, Sofia, Bulgaria and as Editor of the Online Financial Magazine Markets Weekly. ( http://marketsweekly.net )

She holds Masters' Degrees in Law from Sofia University St. Kliment Ohridski, Bulgaria and in Banking and FInance from Institute of Financial Services, School of Finance, London, Great Britain.

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Sick US. Dollar - Equals Wealth Opportunity of a Lifetime

By Tom Genot 

 

What has happened in the past throughout various societies? It's common in every culture once an established monetary system is set in place, to start deficit spending. Once this spending occurs, countries begin to enter into larger and larger wars. At some point a country will grow up from a small country into a great empire such as the Greek or Roman Empires of the past. As these great societies engage in larger wars more money is needed to finance these wars. From this point government becomes too big and the wars being fought only compound the stresses that hold up the entire financial system.

Deficit spending becomes a quick and seemingly natural way to cover the cost of wars. Then not long after the deficit spending starts, it becomes clear that publicly held debt continues to grow and grow. Until such a time when it can no longer be paid back. From this point everything starts crashing down all around until finally everything collapses. For each occurrence, history shows a large wealth transfer took place. These wealth transfers of the past had always started at the endpoint of every major society.

The Dollar
The US dollar has been the world's reserve currency and closely intertwined throughout every society on the planet. Therefore it is totally capable of affecting every other currency on the planet. There is no culture, no county, nor currency that is safe from the US dollar. Should the US dollar ever catch a disease it will become contagious. Thus it is capable of transmitting the disease onto all the other fiat currencies of the world. From here the world's entire money supply will become sick.

But with all the US debt and enormous money printing that has already been done with more to follow, it is now clear the US dollar is not simply sick, it has now manifested itself into a giant malignant tumor. This tumor threatens to take down the entire world's monetary system.

There is this massive amount of negative energy being built up behind the dollar. This massive energy at some point will have to be released; once it blows everything around it will be wiped out. There will be massive devastation that will go beyond anyone's imaginations. With very few exceptions, the only true survivors that will make it out of this unimaginable crisis will be those who have held physical gold and silver.

With Every Crisis Comes Opportunity
At present the greatest opportunity for humanity is occurring right now. During this decade people will be witnessing events unlike anything anyone alive has ever known or witnessed. Within the financial system globally, major changes with national currencies will occur. Events such as the 1923 hyperinflation in Weimar Germany or the Zimbabwe hyperinflation just a few years ago, these events completely devastated both societies. However there was always someplace to run to for wealth protection. At times like these, people would hold their wealth in US dollars.

The problem that's now occurring; were seeing all the currencies on the planet showing signs of weakness and they all could collapse at the same time. Their weakness is due to huge amounts of inflation and signs that a lack of confidence within each of currency is occurring at the same time. A lack of confidence is a sure killer of fiat currency. At this point anymore, holding your wealth in dollars is not an option. The only real avenue remaining for the average person or investor to protect their assets is to accumulate precious metals. Specifically physical gold and physical silver.

This is a significant event because never in history has there even been a global demand for precious metals all at the same time. This event is a huge game changer. Here we are actually looking at the making of the greatest wealth transfer in the history of humanity, and currently it's all unfolding right before us. We are literally staring right into the heart of the greatest wealth opportunity mankind has ever known since recorded history ever began.

Protect your assets today, invest in physical gold and silver and take part in the greatest wealth transfer of mankind. The timing of this global event is impossible to accurately predict. Many experts however believe it will happen within this decade, thus why this decade so special. Time however, is still on your side. Those who refrain, or those who continue to believe a government will take care of them during an economic event like Weimar or Zimbabwe or worse, will sadly be mistaken. Be Prepared!

Tom Genot -

Informational news, books, articles and videos to invest in gold and silver and where the best places are to buy it. Also find informational resources to educate you on alternate forms of investing and preparedness, for protecting you, your family and your assets from the pending economic crises and destruction of the US dollar. Author Tom Genot provides information and resources helpful to everyone. Insure you're prepared, while time is still on your side. Check us out at www.coinbullion.net.

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Borrowing to Invest: Things to Consider

By Nick M Flynn 

 

Borrowing to buy mutual funds or other forms of investment can be an effective way to improve your financial returns. However, it involves more risk than paying for an investment completely with cash.

"Leveraging" is the other term for investing with borrowed money. It can also be called as "gearing". As long as you are investing at a higher rate compared to your borrowing cost, you can earn profit.

What is Home Gearing?

Home Gearing is the most common way of leveraging where you use your home's equity as a security for an investment loan. Your property's equity is basically the difference between its value and what you owe it. Home gearing is an excellent way to put that equity to perform. If applied with an effective investing strategy, home gearing can produce high amount of profits. However, the worst thing that may happen is putting your equity or possibly your home at risk.

What are the Benefits and Risks of Leveraging?


* Benefits of Leveraging

· Accelerate your wealth creation - build our wealth faster by investing a larger amount of cash than you could have otherwise invested using your own money

· Potentially reduce income tax payment - interest and other cost of leveraging may be tax deductable and could potentially reduce your tax income.

· Utilise existing equity - borrowing against your current portfolio can unlock equity. Moreover, you are able to hold a larger more diversified investment portfolio

· Bring forward tax deductions - bringing forward a tax deduction by prepaying interest is possible (for up to 1 year).

* The Risks of Leveraging

· Leveraging can magnify gains but at the same time it can also magnify losses. If investment returns are less than your gearing costs, you may be unable to service your loan.

· Loan cost and interest rate risks. The changes to interest rates and fees change the cost of your loan. Furthermore, deciding to terminate your loan can also have additional charges.

· There is a capital risk because the assets you may invest in may not perform as expected.

· There is also an income risk. Like any loan, you have to be sure that you can afford the service of it.

Sometimes, it is not good to rely on your investment because this source may not always sufficient.

Whatever, kind of investment you're putting up, you always make sure that your cash flow is sufficient to meet both your living expenses and loan repayments.

· It has legislative risk. The changes in tax legislation as well as the regulatory framework may reduce the tax advantages of leveraging.

Borrowing to invest can be an effective strategy, but it's not for everyone. Before you invest, ask for an expert financial advice from a reliable and skilled agency whether this type of debt is good for you or not.

Do you want to learn more about financial planning particularly on borrowing to invest? You may visit Baggetta Accounting for expert financial advice and tips.

Article Source: http://EzineArticles.com/?expert=Nick_M_Flynn

Savings Plan: Stages of Saving Money

By Rahul M Satish

A penny saved is a penny earned
Earning money is not enough to gain financial stability in life. You need to save money regularly to meet your future needs. Following is a step by step plan on how you can save money.

Step #1: Set your savings goal
Personal financial planning at the right time (young earning age) will help your dreams come true. If you ignore planning for future, you cannot save money. No matter how young or old you are, you need to set goals for savings to ensure financial security in future. Over time, you will realize the importance of saving money by setting goals and achieving them on time.

Step #2: Save for emergency needs
This is an important step in savings plan. You need to have enough emergency surplus in cash to meet unexpected needs.

If you do not have enough to meet unfortunate situations like loss of pay, sickness, house/vehicle repair, etc., it may strain your finances and you cannot save properly. Further, you may end up closing your savings plan abruptly. Hence, you need to have adequate emergency surplus to reach your financial goals.

Step #3: Save for short-term needs
Short-term goals are those that can be achieved within a year or two. For instance, vehicle purchase, home renovation, etc.

For this, you need to save money by using your home budget to see where you can reduce expenses on extra things. Thus, you may consider reducing expenses on eating out, shopping and entertainment. Keep track of your spending regularly to know where your money is going. You can do this by carrying a small book to jot down your expenses, or you can download a personal budget application to keep an eye on your spending.

Step #4: Save for long-term needs
Long-term goals are the ones that you want to reach in around four to five years. This can include arranging money for your kid's education, buying a house, saving money for retirement, etc. If you don't consider saving money for long-term goals, you will end up having little or none when you retire.

Saving for long-term goals is a difficult process and you need to be frugal at every stage of your life.

You need to control your spending and inculcate good saving habits.

Most people think that saving money is a difficult task. However, if you start saving now with self-motivation, you can reach your savings goals easily. The sooner you act, the sooner you reach your financial goals. Therefore, set your savings goals, create your planned budget to cut unnecessary expenses and see how you can make big savings fast.

Money Chutney provides insightful articles on saving, investing, budgeting and financial planning.

These articles are intended to provide knowledge and make people aware of methods and techniques on personal finance India, so they can use it to better their financial situation. These personal finance strategies are targeted towards educated middle class people in India, who typically look for information on how to save money.

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