investing in platinum

Platimum Investment – Is it Worth It Today? (2016 Info)

Here is Why You Should Invest in Platinum

Platinum is probably the most under appreciated precious metal amongst investors historically, but we are now starting to see an increase in Platinum investment.

Its value is closer to gold than it is silver (at the time of writing an ounce is $866), however, the return on investment is not as great as either gold or silver, yet. This is probably due to the fact that over 70% of it comes from one country, South Africa and therefore, the return depends on mining and the economic state of the country. Currently (over the past 5 years 1/2010-11/2015) the return has been poor as its value as steadily decreased from $1,697 to $866 an ounce.
platinum investment

For the smart investor, diversification is key. It is for this reason that many investors have taken to investing in gold and silver, with an aim of protecting their savings in the face of an unpredictable investment environment. It does have a much shorter history in the financial markets than gold and silver, and this is because, for a long time, the price has remained significantly higher than that of gold. In fact, less than a decade ago, the price was 150 percent that of gold. Fast forward to today and the price has fallen to levels that are permissible for the willing investor. That being said, it remains scarcer than other precious metals, and for this reason, tends to attract higher prices per unit. These prices tend to change depending on supply and demand. During periods of economic uncertainty, the price tends to go down. This offers an opportunity for an investor to acquire it at reduced prices and diversify their investment portfolio in the process.

Reasons For PLATINUM Investment

If you are wondering whether you should be thinking of investing in alternative, like Platinum investment, the answer is yes. And here are the reasons why:
1. It has recorded a steady and improved performance in the market, compared to silver and gold (although of course, like all investments it fluctuates). In the past, there was not much popularity surrounding this metal, and many investors opted to go for gold and silver. In today’s market, it has proved to the point that it can hold its own, and many investors are turning to it in a bid to get better returns.
2. A strong demand for vehicles creates a higher requirement for it. It is not only a precious metal but an industrial one as well. It is used in catalytic converters, creating over 40 percent of its use. It is also used in other areas as a replacement for gold, such as for jewelry, dentistry and even in electronics. As auto sales increase, the demand will go up, resulting in better prices and higher returns for investors.
3. There are certain factors that could result in a lower supply, meaning better prices for the investor who already has it in their portfolio. Key on the list of factors is the fact that almost all (75 percent) of the world’s supply comes from South Africa. Reliance on one main producer means that any upsetting developments and instability in that country’s mining industry have a huge impact on prices. An example is the mine strikes and turmoil that occurs in South Africa.
4. Renewed growth in China is an opportunity for demand to grow, bearing in mind that China is one of the world’s biggest consumers of platinum jewelry. In fact, China is responsible for 23 percent of the world’s  demand, and an increase in this demand will result in an increase in demand for the metal, hence higher production.
In order for it to be saleable in the commodity market, the ingots must first be assayed in a similar manner to what is done to gold and silver. If you wish to buy and store it in its physical form, you have the option of getting  bars, coins, and bullion. If you are thinking of adding it to your retirement account, you will require the services of a custodian. The custodian will find the it for you, get the paperwork sorted on your behalf and keep the it safe for you.
Alternatively, if it is not for an IRA, you can opt to utilize various routes to invest in it. For instance, Swiss banks give the option of buying and selling the metal like foreign currency, by making specific trading accounts available. What this means is that you, the investor, will not own the actual metal. Rather, you will have a claim against the bank for a certain quantity of metal. This is a much easier route to follow, especially if you are freshly ventured into the field of investing in this and other precious metals.

If you are interested in investing, then check out this selection from Regal.

Current Price

There are several steps that you should take when considering Platinum investment.

• The first thing you need to do is gather as much information as possible. Investing in precious metals is a great way to protect yourself and your finances against economic uncertainties, and Platinum investment is no different, but you must be knowledgeable about what you are doing in order to succeed. If you are in doubt, always consult a financial advisor. In fact, a financial advisor should be the first person you talk to once you decide that you want to invest.
• Decide how much risk you are willing to take on. This should be arrived at after intelligent financial calculations. You must correctly determine how big a portion of your finances you are ready for Platinum investment. Precious metals are much less volatile than stock markets, mutual funds and so on, but it does not mean that they come with zero risk.
• Follow the correct procedure when investing. Unfortunately, many investors are scammed when investing in precious metals because they have no clue that there are proper channels and regulations that have been stipulated to regulate this type of investment. To avoid falling into this kind of trap, seek the services of a reputable financial advisor and only use the services of financial institutions that have been accredited and approved for such investments.
If you have been wondering how to protect your financial future, consider diversifying your investment portfolio. It does not matter whether you are building a nest egg for your retirement, or just saving something for a rainy day, precious metals, and platinum, in particular, have the ability to offer you financial protection.

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Investing in Platinum vs. Goldplatinum or gold as an investment

Just like silver, this metal is both used for investment product and industrial use. As such, it can move out of direct linkage with gold based on the pushing and pulling occasioned by industrial demand. In the recent past, the platinum/gold spread has narrowed down to below $100 per ounce. This has been mainly due to gold’s falls. There continues to be widespread support for this alternative to gold, although the demand for it sometimes gets relatively muted.

Investors have been waiting on global stocks to get depleted, which would mean better prices because of the supply crunch. When it comes to comparing it with gold, it is important to remember that they have one main difference: while as mentioned it has investment and industrial appeal, gold is driven purely by speculators and investors. The market is also smaller and less liquid compared to gold.

During periods of low global economic growth, it is usual for both prices to converge. It is very rare for the price  to fall below that of gold, and when this happens, it usually does not stay there for long. This is because both metals have hedge qualities. When the economy is booming and growth is at an all-time high, its price tends to skyrocket faster than gold prices.

If you are thinking of Platinum investment as a gold alternative, it is important to keep in mind that the current prices may not seem very attractive. However, a synchronized global economic growth is something that would boost its price. At the moment, the global economic growth is not synchronized, as can be seen from the recovery in the US and the UK but struggles in Europe and China.

Keeping in mind that the two largest markets as mentioned are autocatalysts in Europe and jewelry in China, a growth in these two markets will have a direct impact on rising prices.

Gold is facing competition from other assets such as properties and equities, meaning that it has not done as well as expected. That being said, investors who are interested in reaping long-term rewards continue to invest in both too.

If you are wondering which precious metal to invest in between these two, a deeper analysis of market trends and a consultation with your financial advisor should make things clearer for you. And remember, he who does not invest, does not stand the chance to reap returns.

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We also discuss all issues relating to investing in gold ira’s

hand putting money coins with filter effect retro vintage style

Five Important Truths About Personal Investment

Five Truths To Consider Before Investing

Whenever you invest, it does involve taking some chances, whether small or large. The large the single investment the larger the risk. I say ‘single investment’ because you can, of course, limit your risk through diversification, but no investment is without some level of risk, no matter how small.

Over the years of either working within the financial industry or coaching individuals and couples on finance, there have been a number of truths that have continuously cropped up over time, that I have either found myself warning investors about, or I have seen occur, because investors have not heeded the warnings, so I want to share them with you now, so that you don’t make the same mistakes others before yo, have made.

These truths are extremely obvious, but you will be surprised how all too often they impact on a persons or couples lives, probably because they are so obvious, people tend to not take them seriously. I hope you do, regardless of how obvious they may seem.

Truth #1 – It is easier to lose money than it is to make it.

Of course it is, you say, but as I’ve mentioned already, so many people ignore this truth and wonder why they are worse off after investing than they were when they started. It is never a good idea to put all the money you have set aside for investing, into one investment because that simply turns investing into gambling as I mentioned is recent post, nor should you allow yourself to be pressured into investing more than your want. If you are looking for a fast return, the chances of losing your money increase. Understand what your money personality type is first before looking to diversify your investments so as to limit your losses and increase the possibility of a healthy ROI.

Truth #2 – The lack of money is the number one cause of relationship breakups.financial contraints causing relationship problems

If money is scarce or you are on a tight budget, it can be tempting to invest in helping increase your financial status. It doesn’t matter whether the investment type is in stocks, bonds or a second business, or becoming self-employed if you get it wrong the strain on any relationship that you are in can be catastrophic. I have witnessed first-hand marriages destroyed and families being torn apart because of a lack of money, primarily because of bad investment choices.

Men/Husbands if you haven’t realized this already you need to realize it fast; no matter how independent your woman may be, she will always want to know that her man can take care of her financially and if you have children together, that you will always provide for them too. If you don’t have spare cash to invest, don’t risk investing what you do have, for the sake of a few extra bucks every month.  Look to invest in yourself first, maybe take an evening class to add extra skills so you can apply for a better job, maybe look at what expenses you can cut back on first before adding to them.

It is important to understand that financial investing is not the best way to improve your financial status if your status is currently a poor one. It is better to have a poor financial status temporarily that you can improve, together over time, than a poor or even broken relationship because of rash investment decisions.

Truth #3 Be a good investor by securing a home.

Property investment is one of the few investments that provides a good return on investment. Over the past 40 years, property investment has only ever provided a negative return on 5 separate occasions. Additionally, the key to making money with property is to only sell when the market is up, if the market is down, hold on to your investment. Owning a home provides a greater return and security than renting. When renting you are not securing a financial future, you are only lining the landlords pockets.  Securing a mortgage within your financial budget and providing security for your family and future is one of the best investments you can make.

Truth #4 Paper investments are only worth the paper they are written on.

When making an investment, you need to ensure that you are able to release or obtain cash quickly. Investing in paper investments (It is an investment in anything but a hard asset because you only have a piece of paper to show for your ownership) is not cash until you turn it into cash. So if you are looking for a return within a certain period, you need to make sure that if you have a paper investment, you are not tied to it for longer than you anticipated. For example, you take out a mortgage to buy an investment property, you work on the property, improve it and look to flip it for a good return on investment, but unfortunately your mortgage has tie-ins and fees for early completion and they eat massively into your profit. Also, consider the time frame you will be using a paper investment before you get involved in one, because as I said, it worthless if you can’t cash it in.

Truth # 5 Borrowing money to invest is a fast way to financial ruin.

If you take into account the first truth, then you will understand why this truth should certainly not be ignored. It doesn’t matter if you borrow from a bank, on your credit card or from family or friends, the money has to be paid back, and while you are waiting for your investment to mature, you are spending cash to continue paying for it.  Furthermore, a bank or credit card is going to charge you interest, so if your investment doesn’t return the yield you had hoped for, you now have extra money you have to pay back too. Borrowing money to invest is a minefield that you simply can not get through unscathed and is therefore not worth the risk.

I appreciate that these truths are not the most upbeat and encouraging, but they were never meant to be. Sometimes we need to be warned of the dangers ahead before we get into something that will lead us to ruin, and if it takes five short truths to protect you making a big mistake with your investments, then that is certainly a good thing, so I hope they help you as much as they helped others I have shared them with.

 

 

 

 

stock market collapse image

Another Warning Concerning Imminent Stock Market Crash

Another Warning Concerning Imminent Stock Market Crash

In the last few days, we have seen yet another financial expert make the claim that a stock market crash is imminent and advising that investors would be prudent to diversify and create a safe haven in gold
bullion which has already risen 3% this year so far and is currently at $1,106 an ounce (at time of writing).

 

Marc Faber, author of the Gloom, Boom & Doom Report,a Swiss investor, investment banker and fund manager, stated in a recent

Marc Faber - Image provided by Bloomberg.com

Marc Faber – Image provided by Bloomberg.com

interview with MarketWatch that the stock-market downturn could result in stocks hitting lows not seen in five years. He went on to warn that the S&P 500, which dropped to 1,881 1/20/2016, could drop to its 2011 low which was below 1,200.

Now, what is the main factor for the sharp drop in the stock market and in financial liquidy worldwide? Well, Faber stated, just as we wrote in our previous article on the historic breakout of gold from oil, that this current worldwide financial concern, is because of the continuing drop in oil prices.

Faber also went on to state that the current low price of crude oil indicates a shrinking global economy. “When oil prices increase, it basically is a consequence of expanding [global] liquidity,” Faber said, so inversely, this unrelenting fall suggests contraction. As we write this, the current price of oil is at $27 a barrel, the lowest it has been for over 12 years.

So if oil continues to drop and the stock markets around the world continue to be affected by it, what can investors do? In an interview with ETF.com from December 2015, Faber was asked what investments did he think were of value? His answer was interesting. He said; “Again, if you said, “Marc, here is $1 million, but you have to put everything in either gold or in the Dow Jones,” then I would say I’d take gold.”

importance of investment diversification

Why Investment Diversification is Important

In my previous post, I talked about the risk of investing crossing over into gambling; diversification is one of the best ways to prevent that from happening.

Gambling is all about putting all your eggs in one basket, betting the pot on one result, whereas diversification is about spreading the risk so that if one investment goes sour, you have other investments in other areas that can cover the loss.

One of the main keys to successful investing in starting with the end in mind. What I mean by that is, strong and successful investors know before they begin, what the outcome is that they want to achieve.  If the aim is to create an income for retirement then the fund will need to be made up of the safer assets available, like bonds, property and cash, funds that have a low loss rate. If the aim is to generate income now, or your preference is a higher risk, then stocks, options and futures etc will be a better fit.

Whatever the preference, remit or style of your investing, the key is to know what you want to do before starting, and then ensuring you don’t invest in just one area.

On my page dedicated to gold investment, I have a video of Billionaire investor Kevin O’Leary explain why he diversifies his investments and the importance of doing so.

But let me explain why diversification when investing is important.

Let’s say you were to put all your money into property development. This is something a lot of people did pre 2008 and when the housing market collapsed, their investments disappeared. Or imagine if your portfolio is made up only of stocks in the oil industry, with the price of oil continuing to fall right now, your portfolio would be looking rather depleated with no view of a recovery in sight. But if you had some of your portfolio in oil and some in renewable energy, then when one is down, the other prevents you from losing everything.

The best type of investment diversification is spreading your investments across a multitude of investment types and industries. So if you go for a mix of stocks and mutual funds or ETF’s then also diversify further by spreading them across different industry types like construction, transport, health sector and so on.

Diversification is the best way to protect yourself from mass loss. It is not a completely fool proof way, nothing is, but the more your diversify by putting your investments in many baskets compared to putting all your money  in one basket, the more you protect yourself when one basket is hit. Every person I have ever coached, worked with or talked to who lost everything, did so because they put everything into just one or two investments. Everyone who I speak to who has diversified their investments suffers the odd loss now and again, but I never see them panic, because they have that safety net that is diversification, in place.

Gold bars and stock market

The Gold Market Experiences Historic 70-Year Breakout!

The Gold Market has Just Experienced A Historic 70 Year Breakout From Oiloil and gold comparison chart

A recent article on King Word News reported that the gold market has just done something that it has not done for 70 years, and that is it has held its price while the crude oil market continues to decline at an alarming rate. There have also been a number of reports in the financial media that gold too is on the decline, yet when you look at how gold has been performing over the last 12 months, it has fluctuated between $1250 and $1005 an ounce. Compare that to oil on the other hand over the same 12 month period and you will see that oil has dropped from a high of $60.13 a barrel to its current price of $31.35 a barrel.

As you can see from the chart to the side, both oil and gold have historically (although the chart only goes back to 2006) over the past 70 years, run almost along side each other, albeit except through the recession of 2008/2009.

What this chart, along with other data shows us, is that although gold has dropped in price since its 2012 peak, compared to other commodities and in particular, oil, it is performing very strongly, in fact, it is holding.

So what we are seeing here in this historic breakout, through gold holding its price while oil collapses, is that Gold is possibly now entering a bull market. It is of course too soon to predict, and many experts are saying although gold is not in a bull market yet, it is coming in 2016, the question is when?

What this separation from oil has shown us is that a bull market is getting close, closer by the day. Check out BullionVault for more information on gold investing

 

 

gambling chips

When Gambling and Investing cross over

There are a lot of people who invest, who will tell you that investing is nothing like gambling, that gambling has everything to do with luck only and investing is all about reading the markets and making decisions off data, or it’s investing in an a fund that does guarantee a return over time, something gambling can never do.

Although this is true, it is only to an extent. There is an occasion when investing becomes gambling and any so-called guarantees that an individual was hanging their investments on, goes out of the window.

To understand this let me explain the premise of gambling. Gambling is all about betting on one thing happening over another. Whether it’s betting on black over red, one horse over all the others, The Yankees over the Red Sox, or even your stock going up and others going down, gambling is about betting on something specific happening. Take a coin toss for example. You toss a coin and you call tails, but it comes up heads, so you call it again, and again it comes up heads. The odds of it coming up heads a third time are now even greater, so therefore, the chance it will land on tails has increased and so you now bet $10 on the coin landing tails. Having placed your bet, you toss the coin and it lands on heads again. OK, the next toss has to land on tails, so you double your stake, toss the coin and it comes up heads a fourth time. You go through this process ten times, each time doubling your stake and each time losing. That original $10 bet is now a $20,000 plus loss.

This is where gambling and investing cross over. A leading investment expert goes on MNBC or Bloomberg and says that the market is going to go down. Right now there is a lot of chatter that we are potentially moving towards a bear market, but on what basis is that statement made? It is purely made on the direction the market took last month. As a result of the statement made, people then adjust their investments to be in line with a bear market, but making statements purely because the previous month was down, is no different from saying the coin has to land on tails this time because the last 6 were all heads.

History cannot tell us how something is going to turn out, it only tells us what happened. So just because you had a certain number of months of negative results, doesn’t mean that it is going to continue for another three or four months, but neither can you say that because we have had 3 months of negative results we are bound to have good ones now because the same thing happened in ‘1990 whenever.’

Investing is about reading the here and now, not hoping that it will turn or that history will repeat its self. Having that mindset leads to being overly confident – a ‘one day it’s going to turn it has to’ attitude, and all the time you are increasing your investment with the view, your luck has to change soon and you will recoup those losses.

Unfortunately, that is not how it works and like many gamblers who walk away from the table full of regret and remorse, so do investors if they allow investing to cross over into gambling.

silver coin investment

Is Investing in Silver Coins a Good Idea?

When it comes to precious metals, gold is usually preferred by more investors than silver. However, what you need to understand is that just because gold is more popular does not mean silver is less attractive. In fact, adding silver to your portfolio is a great way to diversify and protect your investments. There are two types of silver commonly traded in the market today, and these are silver bars and silver coins.

If you are wondering which one you should go for, the answer is that both of them make for good investments. However, there are certain characteristics that make silver coins more desirable. For starters, silver coins can be bought and sold more easily than bars. When selling bars, you do not have the option of selling a portion, either you sell everything or nothing at all. This is not a problem that is experienced with silver coins.

The fact that silver coins are government-minted is another reason why many people tend to trust, and want to invest in, silver coins. Even when silver prices wildly fluctuate, it is unlikely for government-minted coins to be called into question. It is also important to remember that coins are universally accepted, and so for an investor, it makes a lot of sense to invest in silver coins.

The gold/silver ratio analysis shows that investing in silver coins is a wise move. This ratio is used to determine the absolute and relative prices of gold and silver, and while it currently stands between 50:1 and 60:1, it is expected to normalize to 16:1 in the near future. Coupled with declining below-ground supplies, it is expected that silver will be a much sought after commodity in the near future.

It is also important to remember that silver has a wide variety of uses, especially in the photography industry. As demand for industrial silver soars, it is expected that owners of silver coins and even silver bars will get great returns on their investment.

Investing in precious metals is a great way to approach diversification and protect your portfolio against economic fluctuations and inflation. And while some investors are skeptical about adding precious metals to their portfolio, those who have report no regrets. Go ahead and get yourself some silver coins. You do not have to invest all your money in them; you can simply set aside a small amount to invest in silver coins, and decide how to proceed based on the returns you get thereafter.

If you are interested in investing in silver, be it coins or bullion, then if you live in the US, check out my recommended silver coin and bullion supplier. If you live outside the US then check out this leading supplier of silver.