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The 5 Best Ways to Invest in Gold

Posted by sandhyaravii on June 13, 2012

The ultimate dollar hedge investment will always be gold. Investing in gold through ownership of the metal itself, mutual funds, or gold mining stock provides the most direct counter to the dollar. As the dollar falls, gold will inevitably rise. In a moment, we’ll provide you with many ways for positioning your portfolio to profit from a bull market in gold. For now, we emphasize the high probability of gold’s future. The real potential forprofits in the coming years and decades is not going to be found in the traditional American blue chip industry. That is a financial dinosaur that can no longer compete in the world market.

The future growth is going to be seen in gold. The world economy may remain off the gold standard, but ultimately the tangible value of gold as the basis for real value-whether acknowledged by central banks or not-will never change. Historically, this has always been the case, and it always will be. In other words, we are on a “gold standard” in spite of the popularity of fiat.

You have many choices.

In the following paragraphs, you’ll discover five ways to invest in gold. Based on your level of market experience and familiarity with products, one of these will be appropriate for you.

1. Direct ownership. There is nothing like gold bullion, the ultimate expression of pure value. Historically, many civilizations have recognized the permanence of gold’s value. For example, Egyptian civilizations buried vast amounts of gold with deceased pharaohs in the belief that they would be able to use it in the afterlife. Great wars were fought, among other reasons, to pillage stores of gold. Why the allure? The answer: Gold is the only real money, and its value cannot be changed or controlled by government fiat-the underlying reason for governments to go off the gold standard, unfortunately.Gold’s value will rise based on the pure forces of supply and demand, no matter what Mr. Greenspan decrees regarding interest rates or greenbacks in circulation. The big disadvantage to owning gold is that it tends to trade with a wide spread between bid and ask prices. So don’t expect to turn a fast profit. You’ll buy at retail and sell at wholesale, so you’ll need a big price jump just to break even. However, you should not view gold as a speculative asset, but a defensive asset for holding value. Since your dollars are going to fall in value, gold is the best place to preserve value. The best forms for gold ownership are through minted coins: one-ounce South African Krugerrands, Canadian Maple Leafs, or American Eagles.

2. Gold exchange-traded funds. The recent explosion in exchange traded funds (ETFs) presents an even more interesting way to invest in gold. An ETF is a type of mutual fund that trades on a stock exchange like an ordinary stock. The ETF’s exact portfolio is fixed in advance and does not change. Thus, the two gold ETFs that trade in the United States both hold gold bullion as their one and only asset. You can locate these two ETFs under the symbol “GLD” (for the streetTRACKS Gold Trust) and “IAU” (for the iShares COMEX Gold Trust). Either ETF offers a practical way to hold gold in an investment portfolio.

3. Gold mutual funds. For people who are hesitant to invest in physical gold, but still desire some exposure to the precious metal, gold mutual funds provide a helpful alternative. These funds hold portfolios of gold stocks-that is, the stocks of companies like Newmont Mining that mine for gold. Newmont is an example of a senior gold stock. A senior is a large, well-capitalized company that has been around several years and has a profitable track record. They tend to own established mines that produce known quantities of gold each year. For many investors, selection of such a company is a more moderate or conservative play (versus picking up cheap shares in fairly young companies).

4.  Junior gold stocks. This level of stock is more speculative. Junior stocks are less likely to own productive mines, and may be exploration plays-with higher potential profits but also with greater risk of loss. Capitalization is likely to be smaller than capitalization of the senior gold stocks. This range of investments is for investors whose risk tolerance is broader, and who accept the possibility of gold-based losses in exchange for the potential for triple-digit gains.

5.  Gold options and futures. For the more sophisticated and experienced investor, options allow you to speculate in gold prices. But in the options market, you can speculate on price movements in either direction. If you buy a call, you are hoping prices will rise. A call fixes the purchase price so the higher that price goes, the greater the margin between your fixed option price and current market price. When you buy a put, you expect the price to fall. Buying options is risky, and more people lose than win. In fact, about three-fourths of all options bought expire worthless. The options market is complex and requires experience and understanding. To generalize, options possess two key traits-one bad and one good. The good trait is that they enable an investor to control a large investment with a small, and limited, amount of money. The bad trait is that options expire within a fixed period of time. Thus, for the buyer time is the enemy because as the expiration date gets closer, an option’s “time value” disappears. Anyone investing in options needs to understand all of the risks before they spend money. The futures market is far too complex for the vast majority of investors. Even experienced options investors recognize the high risk nature of the futures market. Considering the range of ways to get into the gold market, futures trading is the most complex and, while big fortunes could be made, they can also be lost in an instant.

We cannot know, predict, or even guess, when the demise of the dollar is going to occur, or how quickly it will take place. But we do know it is going to occur. The tragic mismanagement of monetary policy by the Fed over many years has made this inevitable.

Removing the U.S. monetary system from the gold standard was not merely a decision of short-term effect. Nixon may have seen the move as a means for solving current economic problems, but it had long-lasting impacts: trade deficits, growing federal debt, and the ability to print money endlessly and build a new credit-based economy. Internationally, the decision by the United States virtually forced all other major currencies to also go off the gold standard.

Any investor who views the economic situation broadly-both domestically and internationally-can see that trouble lies ahead. We have delayed the inevitable because China is a partner in our monetary woes.

The Chinese are building their own debt on the dubious foundation of the U.S. dollar, and other Asian economies have been forced to go along for the ride. When the dollar falls, many other countries will suffer as well. The offset, logically, is found in commodities. Investing in oil stocks makes sense, for example, because the price of oil is rising and as it becomes more difficult to drill oil those companies that own drilling and exploration operations will benefit. It makes sense to invest in other commodities as well.

The tangible asset play is clearly where future value is going to lie. With China’s never-ending need for coal, iron ore, tungsten, copper, oil, and other metals, the future of tangible markets is the bright spot in the gloomy financially based economics of the world.

Leading the charge is gold. It is ironic that monetary policy follows a predictable pattern.

Governments overprint money and their currency crashes. Inevitably, they always return to gold, but often at great expense and with considerable suffering. We find ourselves in another one of those moments in time where irresponsible monetary policy has put us at risk. But we don’t have to simply hold on and wait for the demise of the dollar; we can take action now because that demise is great for your portfolio-if you position yourself in tangible assets rather than in empty fiat promises and the bizarre economic premise of U.S. monetary policy.

Goods and services can be paid for only with goods and services. Currency is nothing but an IOU, a promissory note that is not backed up with any tangible value. Once we reach our national credit limit, monetary policy will be forced to retreat. When that happens, traditional investors and their savings accounts are going to be hit hard. The beneficiary of the falling dollar will be the investor whose holdings emphasize tangible value of goods: resources and precious metals.

Every danger to one group of people is invariably an opportunity to another. It all depends on where you position yourself. Those investors positioned in dollar-based investments are going to suffer the loss of purchasing power when the dollar’s value disappears. Those who have moved their investments to higher ground will benefit from the change.

Read more: The 5 Best Ways to Invest in Gold http://dailyreckoning.com/the-5-best-ways-to-invest-in-gold/#ixzz1xgiHyHsQ

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Balance both for goodness of life

Posted by sandhyaravii on June 13, 2012

An oft repeated adage — health is wealth — is true to label in all aspects. Be it health or wealth, both need to be carefully nurtured to enjoy and experience a good life. While a sound health keeps us fit, a sound wealth plan can help an individual meet his/her financial goals and help him/her remain stress free.
If we closely observe, there are many more commonalities between the two (see chart When health is wealth).
In today’s fast-paced life, people are conscious about their health but awareness about creating long-term wealth is negligible. Individuals fail to follow the five-step financial planning process — risk profiling, goal analysis, asset allocation, product selection and portfolio monitoring.
Since the various aspects of a sound health and wealth are similar, an investor just needs to know the ingredients to put together a diet/financial plan that is right for him or her.
Just like we have a ‘food pyramid’ that helps us identify the proportion of carbohydrates (bread, cereals, pasta), vitamins (fruits and vegetables) and proteins (meat, legumes, dairy products) for a healthy ecosystem, a ‘wealth pyramid’ must be followed for a ‘wealthy ecosystem’. This includes the asset classes and products that can be mapped according to one’s risk profile (see pic of The wealth pyramid).
Mutual funds can be a convenient and effective way to achieve long-term financial goals and investors can diversify their assets through investments in various classes like equity, debt, gold, etc.
Regular checkups
Be it a health plan or a financial plan, both change according to the individual’s physical and financial health, his/her age and other situational parameters. Hence, a regular review of an individual’s health as well as wealth profile is very important. For investments, at a young age, people can focus on risky investment products such as equity. But as they near their retirement age, they can move to debt investments to provide security and stability to their retirement income.
Conclusion
While the importance of a good health can never be underestimated, it is equally important to maintain a financially healthy life with the help of disciplined investment planning. Having the right balance between a health plan and a wealth plan is the key. What physical trainers/dieticians are for physical fitness and health, financial advisors are the equivalent for wealth creation as both health and wealth need expert advice. Regular check-ups can ensure a stress-free life.
Thus, for an individual, while being healthy is not an option but a way of life, following a financial plan is not a luxury but a necessity of life.
The author is senior director (capital markets), Crisil Research
COMMON GOAL: The wealth pyramid

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Gold & Silver Rate

Posted by sandhyaravii on June 11, 2012

May 31st 2012

Gold & Silver Rates

22 Carat Gold Rs. 2,766.00
24 Carat Gold Rs. 2,958.50
1 Kg Silver Rs. 54,640.00
1 Gram Silver Rs. 58.50

 

June 1st 2012

Gold & Silver Rates

22 Carat Gold Rs. 2,744.00
24 Carat Gold Rs. 2,934.50
1 Kg Silver Rs. 53,935.00
1 Gram Silver Rs. 57.70

 

June 2nd 2012

Gold & Silver Rates

22 Carat Gold Rs. 2,841.00
24 Carat Gold Rs. 3,038.00
1 Kg Silver Rs. 55,220.00
1 Gram Silver Rs. 59.10

 

June 4th 2012

Gold & Silver Rates

22 Carat Gold Rs. 2,825.00
24 Carat Gold Rs. 3,021.50
1 Kg Silver Rs. 54,415.00
1 Gram Silver Rs. 58.20

 

June 5th 2012

Gold & Silver Rates

22 Carat Gold Rs. 2,825.00
24 Carat Gold Rs. 3,021.50
1 Kg Silver Rs. 54,330.00
1 Gram Silver Rs. 58.10

 

June 6th 2012

Gold & Silver Rates

22 Carat Gold Rs. 2,837.00
24 Carat Gold Rs. 3,034.50
1 Kg Silver Rs. 55,415.00
1 Gram Silver Rs. 59.30

 

June 7th 2012

Gold & Silver Rates

22 Carat Gold Rs. 2,813.00
24 Carat Gold Rs. 3,009.00
1 Kg Silver Rs. 55,995.00
1 Gram Silver Rs. 59.90

 

June 8th 2012

Gold & Silver Rates

22 Carat Gold Rs. 2,724.00
24 Carat Gold Rs. 2,913.00
1 Kg Silver Rs. 53,985.00
1 Gram Silver Rs. 57.70

 

June 9th 2012

Gold & Silver Rates

22 Carat Gold Rs. 2,778.00
24 Carat Gold Rs. 2,971.50
1 Kg Silver Rs. 54,735.00
1 Gram Silver Rs. 58.60

 

June 11th 2012

Gold & Silver Rates

22 Carat Gold Rs. 2,777.00
24 Carat Gold Rs. 2,970.00
1 Kg Silver Rs. 55,100.00
1 Gram Silver Rs. 59.00

 

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Buy Hindalco Industries on dips: Sukhani

Posted by sandhyaravii on June 1, 2012

Buy Hindalco Industries on dips, says Sudarshan Sukhani of s2analytics.com.

Sukhani told CNBC-TV18, “Hindalco Industries is giving some signs of bullishness but the patterns are not visibly made. There is a suggestion that probably in the short-term there maybe a rally that continues. So Hindalco remains a buying opportunity. I think it is wise to take it on a dip, on some consolidation breakout. Targets of Rs 121-125 are possible.

He further added, “I would buy Jaiprakash Associates . After a long time Jaiprakash Associates has come in my buy list and the decline is flattening out. It is not easy to say that Rs 60 is the final low because if the Nift starts collapsing then Rs 60 won’t hold. But talking of today, next week, at Rs 60 it found a lot of support and it is worth buying into. Any small rally in the stock can be handsome in terms of percentages, so I would be a buyer here.”

http://www.moneycontrol.com/news/stocks-views/buy-hindalco-industriesdips-sukhani_712010.html

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Sensex near day’s low; IT, power, oil & gas stocks slide

Posted by sandhyaravii on June 1, 2012

The BSE Sensex witnessed a sudden fall in the afternoon trade and lost nearly 150 points from yesterday’s close. The Indian rupee further depreciated to Rs 55.85 per dollar. IT stocks were the biggest losers in trade today. Selling pressure was also seen in oil & gas, power and capital goods.

Traders will now set their sight on opening of European markets. Asian shares and the euro extended losses on Friday, with Japan’s Nikkei poised to log its longest weekly losing streak in two decades, as weak Chinese factory data highlighted concerns that the euro zone debt crisis will further undermine global growth.

The Sensex was down 142.73 points or 0.88% at 16075.80, and the Nifty was down 48.30 points or 0.98% at 4875.95.

According to Anil Manghnani, Modern Shares & Stock Brokers pullback is still on the cards for the global markets. 4,900-4,875 remains the key trading support for the Nifty.

The market breadth was negative; about 971 shares have advanced, 1275 shares declined, and 1178 shares are unchanged.

Top losers on the Sensex were Wipro at Rs 399.10 down 2.55%, Jindal Steel at Rs 430.90 down 2.39%, Infosys at Rs 2,388 down 2.13%, TCS at Rs 1,223.45 down 1.79% and NTPC at Rs 144.45 down 1.67%.

Index heavyweight Reliance was trading at Rs 694.90 down 1.57% from its previous close of Rs 706.00.

Tech major Infosys was trading at Rs 2,388.00 down 2.13% from its previous close of Rs 2,439.85.

FMCG major Hindustan Lever was trading at Rs 421.40 down 1.24% from its previous close of Rs 426.70.

However, top gainers on the Sensex, ITC at Rs 232.65 up 1.04%, Hindalco at Rs 117.65 up 0.81%, Tata Steel at Rs 405.25 up 0.60%, ICICI Bank at Rs 787 up 0.34%.

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BHEL bags Rs 1,143 crore contract from NTPC for power generating unit

Posted by sandhyaravii on May 31, 2012

NEW DELHI: State-owned BHEL today said it has bagged a Rs 1,143 crore contract from country’s largest power generation utility NTPC for setting up a 500-MW power generating unit at its Vindhyachal Super Thermal Power Station in Madhya Pradesh.

“NTPC has placed a major order on the company for supply and installation of the main plant package (boilers, turbines and generators) for a power project in Madhya Pradesh involving one generating unit of 500 MW,” BHEL said in a statement.

“Valued at Rs 1,143 crore, the contract envisages setting up a 1×500 MW thermal power generating unit at NTPC’s Vindhyachal Super Thermal Power Station (STPS), in Madhya Pradesh,” the statement said.

On commissioning of the unit, 12 million units of electricity will be added to the grid, every day, BHEL said.

“With the commissioning of this unit, the cumulative generating capacity of the power station will be enhanced to 4,760 MW,” it said.

BHEL’s scope of work in the contract envisages design, engineering, manufacture, supply and erection & commissioning of Steam Generator and Steam Turbine Generator along with associated Auxiliaries and Controls & Instrumentation.

The equipment for the project will be manufactured at BHEL’s Trichy, Ranipet, Haridwar, Hyderabad, Bangalore and Bhopal Plants, while the company’s Power Sector, Western Region, will be responsible for erection and commissioning of the equipment.

The company has established the capability to deliver power plant equipment of 20,000 MW per annum.

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Petrol Price

Posted by sandhyaravii on May 31, 2012

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Job Opening

Posted by sandhyaravii on May 31, 2012

URGENT OPENING for

Marketing Executive,

Web Designer, Web Developer,

Customer Care Executive (Female), Sale Coordinator (Female),

Office Assist (Female)

Profiles can be forwarded to rightstop1@gmail.com

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Hiring Java Architect with 9+yrs of experience for Hyderabad location.

Posted by sandhyaravii on May 31, 2012

 

 Position : Java Architect
 Experience : 9+ yrs
 Location : Hyderabad
Share Profiles to rightstop1@gmail.com

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Gold Price May 30th 2012

Posted by sandhyaravii on May 30, 2012

May 30th 2012

Gold & Silver Rates

22 Carat Gold Rs. 2,733.00
24 Carat Gold Rs. 2,923.50
1 Kg Silver Rs. 53,635.00
1 Gram Silver Rs. 57.40

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