Exchange-traded gold
Gold trading and exchange can be done in the form of stock exchange securities. This is the case in many countries such as France, Hong Kong, South Africa, Japan and the United Kingdom. United States and Australia also have stock exchanges for trading in this commodity. These security forms are also referred to as Exchange Trade Funds which track gold prices as a fraction of the gold price.
These securities have the advantage of physical gold backing unlike other derivative products and assets. They have played a large role in the gold market since they represent more than 30% of investments that can be identified.
Gold futures
These are firm commitments in the form of contracts outlining responsibility for gold delivery in the specified purity and quantity at the agreed price and date to an investor. After the buyer pays the initial money or margin, he has nominal ownership of the gold value mentioned in the contract. Although this is a risky affair, the leverage can amount to significant profits.
Gold futures prices tend to be a little higher when compared to the gold spot prices since they attract borrowing cost as well as charges for storage by the firm. These futures are traded in Dubai and India as well with the largest traders who are based in New York.
Gold Options
Gold options give the holder the right to buy and sell a specific gold quantity. However, this does not mean that the holder is obligated to do so and when the holder of the option decides to sell, he or she must sell or buy at a specified date and at a price that is predetermined. The price in this case depends greatly on the spot price of gold, interest, volatility of the price of gold, the agreed-upon price and the amount of time left until the trade takes place. As in contracts, the options give leverage to the holder at a substantial amount. These gold options can be traded by means of brokers.
Warrants
This is another way investors can obtain gold. These warrants are normally issued by investment banks to give an interested gold buyer or investor the right to buy at a specific day and price. The buyer has to pay premiums and in turn gets leverage on the asset and price. These options make it possible for all interested parties to have a piece of the gold investment.
Tuesday, October 12, 2010
Monday, August 30, 2010
Fundamentals of Gold Inheret Value
Understanding the fundamentals that drive the price of gold is important before buying gold coins or rare gold coins.
Keep in mind that the fundamentals are the strongest factors that affect the price of gold though they are not the only ones. Understanding the fundamentals should also help you better understand other factors that may play a role.
In its simplest form the ultimate fundamentals for gold is supply and demand.
Gold by nature is scare. Gold may not seem as scare with millions of gold bullion coins minted that are in circulation though when you consider how many people don't have a position in gold you start to understand its scarcity. Gold has been a treasure by people for thousands of years.
It truly is not easy to get gold from a basic level. Many miners have lived and died in gold rushes like the ones in California and Alaska. The reality is that most of the miners from different gold rushes throughout the years left empty handed.
You may say now it isn't hard as you can go to a reputable brokerage firm and pick some up. The effort to do this isn't measured in sweat though in the dollars it then takes to get gold in its monetary form as gold bullion coins or bars.
Just think it takes on average 10 tons of ore to produce 1 little ounce of gold. The scarcity is what gives gold its inherit value before any other factor is applied.
Today the demand for gold is outpacing the production and mining of gold due to economic crises as gold has become a safe haven for preserving wealth.
One test to the true value of gold is that its value is so great it is estimated that almost all gold ever minded is still accounted for.
Keep in mind that the fundamentals are the strongest factors that affect the price of gold though they are not the only ones. Understanding the fundamentals should also help you better understand other factors that may play a role.
In its simplest form the ultimate fundamentals for gold is supply and demand.
Gold by nature is scare. Gold may not seem as scare with millions of gold bullion coins minted that are in circulation though when you consider how many people don't have a position in gold you start to understand its scarcity. Gold has been a treasure by people for thousands of years.
It truly is not easy to get gold from a basic level. Many miners have lived and died in gold rushes like the ones in California and Alaska. The reality is that most of the miners from different gold rushes throughout the years left empty handed.
You may say now it isn't hard as you can go to a reputable brokerage firm and pick some up. The effort to do this isn't measured in sweat though in the dollars it then takes to get gold in its monetary form as gold bullion coins or bars.
Just think it takes on average 10 tons of ore to produce 1 little ounce of gold. The scarcity is what gives gold its inherit value before any other factor is applied.
Today the demand for gold is outpacing the production and mining of gold due to economic crises as gold has become a safe haven for preserving wealth.
One test to the true value of gold is that its value is so great it is estimated that almost all gold ever minded is still accounted for.
Thursday, August 5, 2010
Popular Types of Gold Coins
Various types of gold coins are popular among investors because they can be easily exchanged for cash. Further, their value increases with the passage of time. Gold coins are preferred by investors due to their low weight, high density and high value. Further, the national wealth of most of the nation is determined by the amount of gold it has.
Various Types of Gold Coins
Here are some types of gold coins preferred by investors and collectors alike:
Saint-Gaudens Double Eagle
This is one of the most popular types of gold coins, and is held in high esteem by investors. The coin derives its name from the name of its designer, Augustus Saint-Gaudens. He was a famous US sculptor. Also, these coins are popularly known as the $20 gold piece. The images on the coin reflect old Greek art. The price of these coins is less than many other gold coins.
The US Saint-Gaudens Double eagle coins were issued from 1907 till 1932. Although 445,500 such coins were minted in 1933, none of them were circulated due modifications in the currency laws during the period of the Great Depression.
Indian Head Eagle
The Indian head eagle coin was issued for the first time in 1907. These gorgeous pieces are known as the $10 gold piece. They are available for a range of prices, depending on their mint grades.
In the auction to be held on August 11, 2010, which is a part of the American Numismatic Association’s World’s Fair of Money in Boston, MA, the only known Plain Edge 1907 Indian head eagle coin with Wire Rim, will be auctioned. The coin, designed by Augustus Saint-Gaudens, is a part of the only coinage designed by him that Saint-Gaudens ever saw. The coin is expected to fetch a staggering amount because of its historical importance.
Capped Bust Eagle
The Capped bust eagle coins are among the most popular gold coins purchased by collectors. These coins lasted nearly for a decade. It is believed that original series had nearly 65,000 coins. On the front, the coin bears an image of the right-facing bust of Lady Liberty. On the reverse side, it bears an image of either a small eagle or a heraldic eagle. The price of a capped bust eagle coin depends on its grade.
You might be able to purchase a capped bust eagle gold coin for a price of nearly $13,099 on the online shopping website, eBay.
Various Types of Gold Coins
Here are some types of gold coins preferred by investors and collectors alike:
Saint-Gaudens Double Eagle
This is one of the most popular types of gold coins, and is held in high esteem by investors. The coin derives its name from the name of its designer, Augustus Saint-Gaudens. He was a famous US sculptor. Also, these coins are popularly known as the $20 gold piece. The images on the coin reflect old Greek art. The price of these coins is less than many other gold coins.
The US Saint-Gaudens Double eagle coins were issued from 1907 till 1932. Although 445,500 such coins were minted in 1933, none of them were circulated due modifications in the currency laws during the period of the Great Depression.
Indian Head Eagle
The Indian head eagle coin was issued for the first time in 1907. These gorgeous pieces are known as the $10 gold piece. They are available for a range of prices, depending on their mint grades.
In the auction to be held on August 11, 2010, which is a part of the American Numismatic Association’s World’s Fair of Money in Boston, MA, the only known Plain Edge 1907 Indian head eagle coin with Wire Rim, will be auctioned. The coin, designed by Augustus Saint-Gaudens, is a part of the only coinage designed by him that Saint-Gaudens ever saw. The coin is expected to fetch a staggering amount because of its historical importance.
Capped Bust Eagle
The Capped bust eagle coins are among the most popular gold coins purchased by collectors. These coins lasted nearly for a decade. It is believed that original series had nearly 65,000 coins. On the front, the coin bears an image of the right-facing bust of Lady Liberty. On the reverse side, it bears an image of either a small eagle or a heraldic eagle. The price of a capped bust eagle coin depends on its grade.
You might be able to purchase a capped bust eagle gold coin for a price of nearly $13,099 on the online shopping website, eBay.
Wednesday, June 30, 2010
Fannie and Freddie
In 1938 and 1970, respectively, the US government created Federal National Mortgage Association or Fannie Mae and Federal Home Loan Mortgage Corp. or Freddie Mac, with the idea of providing home to people. It however, went a little too far when these mortgage houses started to buy from borrowers with poor credit rating. To make matters worse, the Congress directed these houses to lower their standards further for prospective borrowers, in order to compete with the emerging private sector, which was pushing hard into subprime loans. By 2008, $500 billion of the total $5.7 trillion of the loans Fannie and Freddie guaranteed or held were in subprime mortgages.
Now since the housing bubble has burst, the government is struggling to estimate the scale of losses. Even after extensive measures, the government is still left with a huge number of unsettled bad loans. The sum required to set the books in order is dependent upon the market situation. As Treasury Secretary Timothy F. Geithner puts it, “It’s very hard to judge what the scale of losses is.” An optimistic turn of events may require $160 billion. A further slump of 20 percent in the housing sector may however, pose a need of as much as $1 trillion.
The Obama administration is considering the idea of dividing all the loans among good banks with all the performing assets and bad banks with ill ones. Credit Suisse estimates the cleanup cost to the bad bank at around $290 billion, which will ensue from the taxpayers. The other alternative in sight is to let these companies default on their terms. Though, this can lead to a global turmoil and investors around the world may see US markets as the precarious ones for times to come.
The Republicans tried to push for amendment to slowly phase out the mortgage houses. A New Jersey Republican and a co-sponsor of the phase-out amendment Scott Garrett held the view that phasing out these houses will make it imperative for the government and market to deal with the issue directly, which currently is not the case. He asserted that without doing so, it would not be possible to judge the extent of damage.
There are divergent views on the issue however. It is said that keeping the houses would help the economy eventually. The National Association of Home Builders reported that the real estate market contributed 17 percent to the GDP in 2009. In addition, hoping for the private sector to fill up the huge gap is not seen as realistic. Whatever the way to deal with it is, purging the markets off the bad loans is going to cost the taxpayers a lot of money over several years to come.
Now since the housing bubble has burst, the government is struggling to estimate the scale of losses. Even after extensive measures, the government is still left with a huge number of unsettled bad loans. The sum required to set the books in order is dependent upon the market situation. As Treasury Secretary Timothy F. Geithner puts it, “It’s very hard to judge what the scale of losses is.” An optimistic turn of events may require $160 billion. A further slump of 20 percent in the housing sector may however, pose a need of as much as $1 trillion.
The Obama administration is considering the idea of dividing all the loans among good banks with all the performing assets and bad banks with ill ones. Credit Suisse estimates the cleanup cost to the bad bank at around $290 billion, which will ensue from the taxpayers. The other alternative in sight is to let these companies default on their terms. Though, this can lead to a global turmoil and investors around the world may see US markets as the precarious ones for times to come.
The Republicans tried to push for amendment to slowly phase out the mortgage houses. A New Jersey Republican and a co-sponsor of the phase-out amendment Scott Garrett held the view that phasing out these houses will make it imperative for the government and market to deal with the issue directly, which currently is not the case. He asserted that without doing so, it would not be possible to judge the extent of damage.
There are divergent views on the issue however. It is said that keeping the houses would help the economy eventually. The National Association of Home Builders reported that the real estate market contributed 17 percent to the GDP in 2009. In addition, hoping for the private sector to fill up the huge gap is not seen as realistic. Whatever the way to deal with it is, purging the markets off the bad loans is going to cost the taxpayers a lot of money over several years to come.
Monday, June 21, 2010
Gold Rallies on the Back of Speculation
Economic instability has ever been a fertile ground for the appreciation of gold prices. One of the obvious reasons is the revamping of the investment basket by the investors on different levels. Economic turbulence has a strong bearing on most types of assets, including stocks and paper currency. During inflationary conditions, the paper currency begins losing its value relative to the goods and services, which makes them pricier. It is prudent, in such conditions, to substitute gold for at least a part of the total investments. This works as a hedge against the loss in the value of assets in hand. Interestingly, the same commodity is a hedge in the times of deflationary pressure on the economy. Deflation threatens erosion in the currency because of a lack of commercial activity.
In effect, the demand for gold shoots up in any type of volatile times on the economic scene. The demand-driven price rise acts as a positive indicator for speculators to pitch into the market. As nations are slowly propelling their growth engines after the recent global recession, the investors are whetting their risk appetites. However, speculating another impending crisis and consequent investment switch towards gold, the bargain hunters traded the yellow metal in large volumes on Monday, June 14, 2010. The disproportionately large sovereign debt in Greece became known earlier this year, followed by a bailout appeal by the Greek Government in April. The analyst opinions remain divided on the likelihood of a double dip, while the prospective bailout packages are being formulated and negotiated. The uncertainty in the Euro Zone has created widespread concerns among the investor funds, banking corporations, Governments, and the retail investors, alike. Consequently, gold is yet again being viewed as a safe haven for investment and hedging.
Euro has taken a beating with a loss of approximately 7% in value, in the month of May. Back home, the US national debt is over $13 trillion, forming a sizable percentage of the GDP. The impact is a weak US Dollar. For long, Euro and gold were seen as alternatives to Dollar. A sliding Euro has propelled the demand for gold even further. The entire demand is not coming from the speculators and the institutions, but they are fuelling a large part of it. The mixed sentiments towards the economic recovery were evident last week, when gold touched a record high of $1,251.20 before plunging to $1,214. Afshin Nabave of NKS Finance expects gold to cross $1,250 once again and approach $1,300 in the due course.
In effect, the demand for gold shoots up in any type of volatile times on the economic scene. The demand-driven price rise acts as a positive indicator for speculators to pitch into the market. As nations are slowly propelling their growth engines after the recent global recession, the investors are whetting their risk appetites. However, speculating another impending crisis and consequent investment switch towards gold, the bargain hunters traded the yellow metal in large volumes on Monday, June 14, 2010. The disproportionately large sovereign debt in Greece became known earlier this year, followed by a bailout appeal by the Greek Government in April. The analyst opinions remain divided on the likelihood of a double dip, while the prospective bailout packages are being formulated and negotiated. The uncertainty in the Euro Zone has created widespread concerns among the investor funds, banking corporations, Governments, and the retail investors, alike. Consequently, gold is yet again being viewed as a safe haven for investment and hedging.
Euro has taken a beating with a loss of approximately 7% in value, in the month of May. Back home, the US national debt is over $13 trillion, forming a sizable percentage of the GDP. The impact is a weak US Dollar. For long, Euro and gold were seen as alternatives to Dollar. A sliding Euro has propelled the demand for gold even further. The entire demand is not coming from the speculators and the institutions, but they are fuelling a large part of it. The mixed sentiments towards the economic recovery were evident last week, when gold touched a record high of $1,251.20 before plunging to $1,214. Afshin Nabave of NKS Finance expects gold to cross $1,250 once again and approach $1,300 in the due course.
Friday, April 23, 2010
Paper Bags or Plastic bags: Every Thing You Need to Know
You may not know that the question of paper or plastic is a far bigger question for eco friendly conscious people than you would think. The use of plastic bags is much more rampant in the market than paper bags because of many reasons and one such reason is that the cost of plastic bags is much less than the paper bags.
Manufacturing of Paper Bags:
The manufacturing of paper bags is a long and complicated process. These bags are made from the trees and they have their environmental cost as well. The use of trees for making these bags is not good for the environment and the forest habitat. This results into long run damage to the ecology. Also the cutting down of trees and carrying them to the manufacturing units requires the use of heavy machinery and the transportation then consumes much of the fuel. After these trees reach the desired place, there is a long process of drying the trees and extracting the pulp, then bleaching and washing of the pulp and adding the color, etc. This whole process requires a lot of resources which can be otherwise utilized for better reasons.
After Use of Paper bags:
There are different possibilities like either you can compost them or throw them or you can recycle these bags. The recycling is again a complicated and tricky process and requires the use of a lot of resources again.
Manufacturing of Plastic Bags:
Plastic bags are made completely differently from the paper bags. Plastic bags are the side products of oil and are produced by the refining process of oil. The big resource input which is used in the production of plastic bags is the energy in the form of electricity.
Recycling of the Plastic Bags:
Plastic bags are recycled but it is not an easy process and requires the melting and casting of the plastic again. This is also an energy consuming process and after the recycling, the quality of the plastic gets hard and this cannot be recycled again.
Which bag to use: Paper or Plastic?
The comparison between these two bags can be made by looking at the energy consumption, environment emissions and all other costs of recycling and production. According to some statistics, plastic bags are better as they consume less amount of energy and other air emissions while paper bags consume more resources than the plastic bags.
So to support the go green cause, the bags which consume less of the resources should be used.
Natures Organic Market offers the best prices on organic products including organic white tea.
Saturday, January 9, 2010
Fantasy Wedding Dress for the Bride Who Wants a Fairytale Wedding
Fantasy wedding gowns fall in the line of those styles that never fade with time and remain the choicest options for the wannabe brides. Mostly, such fantasy gowns feature in Vintage or Fairytale wedding themes and are characterized by their traditional looks. However, it is not necessary to settle for these themes to have such attire. Any formal wedding arrangement can be combined with Fantasy dresses for the bride and the groom.
Fantasy Wedding Gown Features Following are some of the distinguishing characteristics of the Fantasy wedding gowns:
Fall and Designing Fantasy gowns are bulky in the terms of dress material as well as designing. This is to add a touch of 'royalty' to the attire. They have fuller cuts and flowing full-length skirts. Ball gowns are predictably, the most popular choice, closely followed by A-line dresses. The basic cuts are chosen according to the body type, including shape and height. For instance, a full rounded gown is not suitable for short heighted brides. A-lines can be used for almost all the types of figures and are great option if you could not keep the commitment of loosing those extra kilos! They are therefore better bets if you have to struggle to maintain your body weight. The straighter fall can be made up for by the use of right fabric and embellishments.
Top or Bodice Although, there is not much choice in the fits of the bodice, its length can be used to vary the look of the entire gown. You can get your bodice extended below the waist to show-off your enviable figure. Alternatively, you can choose a medium length design with accessories to hide away your extra fat.
Sleeves and Necklines The range of options includes the modern ones, like off shoulder, strapless, halter, and noodle-straps. Nevertheless, a combination of the vintage style rounded or V-necks, in combination with puffed or free flowing sleeves gives the 'true' fantasy look to your attire.
Fabric Fabrics for such gowns are usually the richer ones, such as silk, satins, tulle, and chiffons. Simpler dress material like cottons can also be used with adornments and other 'richer' fabrics to add that fairytale appeal to your dream dress.
Accessories Do not forget long trains and cathedral length veils, without which, any fantasy dress would look incomplete. Sparkling jewelry, beads & studs, bouquet, stones, etc are also used with these gowns to add flamboyance.
Price If price is any issue for you, do not lose hope. Take heart in the fact that if you are aware enough, you can still land up an attractive deal vis-à-vis discounts or a used dress. These options allow you an access to the designer wears, which otherwise would be distant dreams.
No matter what you pick up, the first step begins with planning. Even before you embark upon the planning process, let your imagination flow freely.
Bridal Online Store offers discount prices on plus size wedding dresses and beach wedding dresses.
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