There has been a lot of debate over the years as to whether or not gold is worth investing your money in. Some make the claim that it makes an excellent hedge against inflation; others might say that you can use it as a quick fix for some extra cash. And then there are some that invest in it when the economy is bad because they feel if everything crashes, at least their gold will still carry some value.
So what is it? Is gold a good investment?
Well- let's define "investment" first; really, it should be categorized into a couple of different perspectives. We either invest with a long term approach, or we invest with a short term, turn a quick profit approach. In this article, we'll explore both the short term and long term approaches to using gold as an investment.
Before we consider the above, let's look at how gold has been performing throughout the years and use that data to consider the question.
First, if we were to take all of the years that gold's worth has been calculated up to the present, we would find that gold has improved in value at about 2% annually. In the last 50 years, things have been a little bit better, as gold has been increasing at about 4% annually. So would it be a good long term investment? Doubt it... most good index funds (something that might follow the S&P 500, for example) have been increasing on average at 12% annually in those same years. Do your research- you'll find the same data.
Here's another interesting thing: if you would have bought a bunch of gold back in 1983, you would have purchased it for roughly $510 per ounce. Thinking that it might be "a good hedge against inflation," you hold that investment for the next 20 years or so. By the end of 2005, if you were to have attempted to sell that same gold, you would have made literally NOTHING! That's right- in December of 2005, gold was being sold at $515 per ounce!
If you take inflation running at about 3% into account, you'd have found that gold would have lost you a substantial amount of money.
Is good a good investment? Considering the numbers, it wouldn't be good long term.
How about gold as a short term investment? Currently, gold is being traded for roughly $875 per ounce! In the last several years, it's been increasing at an astounding rate! So now would be a good time to buy, right? Absolutely not! It's only been in the last few years that it's really gained any ground; if you look into history, anytime gold begins to look up, it ends up taking a hard fall.
If you would have bought gold in the last couple of years, now might be a good time to sell it!
But what about now? Should you buy it? Well... you decide. Typically, I like to buy low and sell high; don't we all? So... with gold being as high as it is, the worst decision you could make would be to buy it. Don't touch it!
So, in short, is gold a good investment? Absolutely NOT! Stay away from it.
Trever Shipp, the author, works as an online business consultant, student, husband, and business owner. Follow his personal finance blog http://www.financialnut.com/ and see how he and his family take finances by the horns and steer them to success.
Showing posts with label forex currency exchange. Show all posts
Showing posts with label forex currency exchange. Show all posts
Thursday, August 21, 2008
Wednesday, August 20, 2008
Introduction To Forex Currency Trading
Forex or Foreign Exchange trading is trading foreign currencies. The forex market is the largest financial market in the world with daily trade touching 3 billion dollars. It is also the most liquid market. Till about a decade ago, the forex market had only big banks, multi national corporations and institutional firms participating in the trade.
This was because the tools and systems required to trade in forex was available only to them. But the advent and development of internet has changed all that. Now, small companies and even individuals have the opportunity to be a part of the forex market.
Forex trading is done in pairs of currencies. There is a bid and ask price for each transaction. The difference between the bid and ask prices is called as spread. The value of this spread determines the profit margin for the trader. There are four currency pairs that dominate the forex market trade. US dollar - Euro, US dollar - Yen, US dollar - Swiss Franc and US dollar - British Pound. Before investing in the forex market, it is important to study and analyse which currency is likely to appreciate in value with respect to other currencies. For example, if a trader bought 100 Yen at 50 US dollars and sold the 100 Yen at 70 US dollars in a week, the return on investment for him is 20 US dollars.
Forex markets are open 24 hours a day, from Sunday evening to Friday evening. It operates across the globe from Asia to Europe to North America. There are no formal control bodies to govern the forex market. The forex market does not have a formal exchange for transactions. All trading is done between the forex dealers or brokers directly and not through an exchange. Generally the large international banks determine the bid and ask prices of currencies and hence they have the maximum say in deciding the state of the forex market at any given time.
Until recent times, because there were many regulations like huge minimum transaction sizes that prevented individual players from entering into the forex market. Now there are forex brokers who have made this possible for individuals. Anyone can buy and sell currencies in any quantity. The individual investors buy and sell through these brokers. Thus, the brokers are able to meet the minimum transaction size required by the forex market.
They purchase in large blocks and then distribute it among their investors. Visit Forex Currency for more information.
This was because the tools and systems required to trade in forex was available only to them. But the advent and development of internet has changed all that. Now, small companies and even individuals have the opportunity to be a part of the forex market.
Forex trading is done in pairs of currencies. There is a bid and ask price for each transaction. The difference between the bid and ask prices is called as spread. The value of this spread determines the profit margin for the trader. There are four currency pairs that dominate the forex market trade. US dollar - Euro, US dollar - Yen, US dollar - Swiss Franc and US dollar - British Pound. Before investing in the forex market, it is important to study and analyse which currency is likely to appreciate in value with respect to other currencies. For example, if a trader bought 100 Yen at 50 US dollars and sold the 100 Yen at 70 US dollars in a week, the return on investment for him is 20 US dollars.
Forex markets are open 24 hours a day, from Sunday evening to Friday evening. It operates across the globe from Asia to Europe to North America. There are no formal control bodies to govern the forex market. The forex market does not have a formal exchange for transactions. All trading is done between the forex dealers or brokers directly and not through an exchange. Generally the large international banks determine the bid and ask prices of currencies and hence they have the maximum say in deciding the state of the forex market at any given time.
Until recent times, because there were many regulations like huge minimum transaction sizes that prevented individual players from entering into the forex market. Now there are forex brokers who have made this possible for individuals. Anyone can buy and sell currencies in any quantity. The individual investors buy and sell through these brokers. Thus, the brokers are able to meet the minimum transaction size required by the forex market.
They purchase in large blocks and then distribute it among their investors. Visit Forex Currency for more information.
Thursday, August 14, 2008
Forex Profit Accelerater Review - How Much Money Can You Make on Forex
One of the optimal way to earn more money on the Forex market is by getting a proper Forex trading education. This can be done by attending seminars or taking a home course. One of the best courses, if not the best, is Bill Poulos's Forex Profit Accelerater course.
Offered in limited numbers, this course is a comprehensive analysis of the Foreign exchange market and what you need to do in order to be successful in it. Forex Profit Accelerater comes in the form of a manual and video tutorials that teach you 4 major trading strategies which fit different market conditions and allow you to exploit both short term and long term opportunities. But what's special about this course is that it also teaches risk management and money management. This ensures that you modify the strategies to your own personal needs and condition, financial and otherwise.
The course is for beginners to veteran traders and the entire application of the strategies it teaches takes 20 minutes per day. Another great aspect about Forex Profit Accelerator is that it comes with a full year complete support by Bill Poulos and his team. This is widely different than most home courses which abandon you once you've ordered from them. The support and continuous free upgrades help to maximize your ability to turn the knowledge that you learn into a steady stream of income which can become thousands or even tens of thousands each and every month.
The point is that you need to make a decision whether or not you're truly serious about Forex trading. If you are, then don't settle for cheap courses as you get what you pay for. Try a true and complete course like this one, and you will reap the benefits in the long run.
To read more about this course, click here: http://www.squidoo.com/ForexProfitAcceleratorReviews Forex Profit Accelerator Review. Jonathan Gibson makes his money from home and has an extensive experience in market trading. To read more about how to make more money on the Forex market, click here: http://www.squidoo.com/ForexProfitAcceleratorReviews Best Forex Course.
Offered in limited numbers, this course is a comprehensive analysis of the Foreign exchange market and what you need to do in order to be successful in it. Forex Profit Accelerater comes in the form of a manual and video tutorials that teach you 4 major trading strategies which fit different market conditions and allow you to exploit both short term and long term opportunities. But what's special about this course is that it also teaches risk management and money management. This ensures that you modify the strategies to your own personal needs and condition, financial and otherwise.
The course is for beginners to veteran traders and the entire application of the strategies it teaches takes 20 minutes per day. Another great aspect about Forex Profit Accelerator is that it comes with a full year complete support by Bill Poulos and his team. This is widely different than most home courses which abandon you once you've ordered from them. The support and continuous free upgrades help to maximize your ability to turn the knowledge that you learn into a steady stream of income which can become thousands or even tens of thousands each and every month.
The point is that you need to make a decision whether or not you're truly serious about Forex trading. If you are, then don't settle for cheap courses as you get what you pay for. Try a true and complete course like this one, and you will reap the benefits in the long run.
To read more about this course, click here: http://www.squidoo.com/ForexProfitAcceleratorReviews Forex Profit Accelerator Review. Jonathan Gibson makes his money from home and has an extensive experience in market trading. To read more about how to make more money on the Forex market, click here: http://www.squidoo.com/ForexProfitAcceleratorReviews Best Forex Course.
The Best Forex Trading System
Forex trading is by and large the most profitable form of investing today. It is not like the stock market where you may have to sit on your holding for weeks even months before you implement your exit strategies. But at the same time you cannot just dive right in and expect a return. Not until you develop a system.
There are many trading systems available on the market today. Some provide you with trading signal others are automatic robots that trade for you. These are good programs. Some work better than others. I have tried several of these and have had mixed results. None provided me with the profits I expected.
Don't expect to pick up one of these systems, plug it into your trading platform and be a millionaire in the morning. It just is not going to happen. The only real way to be successful using any forex trading system is to do your due diligence in conjunction with any of these systems and devise your own trading system.
I use a forex trading system that has no indicators no moving averages. It is solely based on price movements and it has served me very well. I do not have the time to sit in front of my computer and watch charts all day. I still have a job that I must go to unfortunately. So this system is perfect for me. I simply input some values into a spreadsheet and and the results are possible trades for the week.
All I have to do is check the chart once a day and if they meet the criteria I am looking for then I place my trade. It's the simplest thing I have ever done. I'm not a millionaire as of yet not even a hundred thousand-aire but I am winning more trades than losing. To see what i think is the best forex trading system visit the link below http://www.squidoo.com/handyforexalerts
There are many trading systems available on the market today. Some provide you with trading signal others are automatic robots that trade for you. These are good programs. Some work better than others. I have tried several of these and have had mixed results. None provided me with the profits I expected.
Don't expect to pick up one of these systems, plug it into your trading platform and be a millionaire in the morning. It just is not going to happen. The only real way to be successful using any forex trading system is to do your due diligence in conjunction with any of these systems and devise your own trading system.
I use a forex trading system that has no indicators no moving averages. It is solely based on price movements and it has served me very well. I do not have the time to sit in front of my computer and watch charts all day. I still have a job that I must go to unfortunately. So this system is perfect for me. I simply input some values into a spreadsheet and and the results are possible trades for the week.
All I have to do is check the chart once a day and if they meet the criteria I am looking for then I place my trade. It's the simplest thing I have ever done. I'm not a millionaire as of yet not even a hundred thousand-aire but I am winning more trades than losing. To see what i think is the best forex trading system visit the link below http://www.squidoo.com/handyforexalerts
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