Wednesday, 2 May 2012

What Is A Wealth Cycle?

A wealth cycle is simply shifting one investment from one sector that is over valued to another investment from another sector that is undervalued. Then you wait for that undervalued investment to become overvalued and then go through the cycle again.The Dot.com bubble of the 90's is a prime illustration of this.

What the majority don't know is, this boom started way back in the early 80's at the same time when the Gold and Silver bubble was bursting. At this time most of the money was shifted out of Gold and Silver and put into emerging tech stocks and internet start ups.The price of Gold had gone from $850 in 1980 to $255 by 2001.

What ended up happening with all this wealth going from Gold into tech stocks created the biggest investment bubble in history by 2000 at that time.By 2001 the Dot.com cycle had reached a climax and all this wealth started pouring out all these stocks and into physical assets and real-estate.Trillions of dollars were poured into the U.S housing market which in turned created the biggest housing boom in history. The cost of an average family home went from $169,000 in 2000, to $247,900 in 2007, then the bubble burst, and now all that wealth is flooding out of the real estate sector and into the next market which is Gold and Silver.

If you know how these cycles work, you know to sell the asset when it has reached its peak and then buy the next asset when its at its low. Sadly though the people who don't understand these cycles do the exact opposite. They will get into an investment when it is near its peak, then end up freaking out selling at a loss and not understanding the cycle was already over, while the intelligent investor is shifting there investment into the next asset class.

Having the knowledge to understand these cycles has to be the first step to take before getting into any long term investment. To really understand what makes the current wealth cycle (Precious Metals)the Mother of all cycles, we have to look back at what happened during the housing boom. An extraordinary amount of people in the U.S were given loans by the banks that just shouldn't have been given one. The banks then wrapped up all these loans that were defaulted on into derivatives and sold again. Money poured into the worlds economy unlike anything seen before, places like Dubai were built from no where in less than 10 years.

People were spending massive amounts of money on fancy cars, boats, vacations and investments in the markets and purchasing them by using there homes as collateral.While we know the housing bubble was the biggest on record, the problem with all this borrowing and spending was this housing bubble was getting blown up by these derivatives from the bad loans, so in other words the bubble was been inflated by toxic IOU's where there wasn't a hope n hell that they would be payed back.

Unlike the tech bubble that was fueled by real money.Then it all started to go down hill when on August 6 2007 the American Home Mortgage Company went bankrupt putting a pin prick into the housing bubble. Up to now these wealth cycles had been manage by real money that flowed from over-valued assets, to undervalued assets.

The down fall of the American Home Mortgage Company was a strong indicator that the worlds economy could no longer sustain anymore of this debt that had powered the growth that we saw in the U.S, in Dubai, in Singapore, in Malaysia, China, and so many other countries who went through housing booms. This was the day the bubble started to deflate, caused by all this debt which was packaged into derivatives and sold again and again and again. This was an event that was felt globally.

Whenever a credit bubble bursts its a deflationary event, for example the great depression was extremely deflationary.Whenever a property goes into foreclosure, when someone can't pay back a loan or if someone goes bankrupt, all that money vanishes into thin air just like where it came from. Whenever a loan or credit can't be payed back the money supply tightens up and deflation sets in.

This is what happened in the Great Depression in the 1930'sAnd its happening all over again, with the bubble in the housing boom bursting there are estimation out there that over the last 2 and a bit years 60 Trillion worth of credit has been pulled out of the worlds economy because of deflation.This was 60 Trillion dollars that was producing major growth globally and then with just a flick of a switch it vanished. All this wealth really was just an-optical illusion, and the worlds economy has been coming to a gradual slow down as all this debt unravels it's way through the system via deflation.

In any other circumstance other than this present time this would be incredibly agonizing, but a necessity to resolve this problem naturally. The people and the businesses that made the wrong choices and who were careless with there credit amounts would suffer and have to pay the consequences as would be warranted.


The smart ones would recover and rebuild and the process would exile the the ones who made poor decisions.The difference in what is happening today is the governments and the financial reserve banks of the world who are trying to do everything in there power to stop this natural process from happening. And because of these measures they have pre-determined which investment type will be the next wealth cycle..... Precious Metals.

Sadly, if we look back in history there are tale tale signs that because of this change over of asset class is so big, it will take down the entire fiat currency system in the process.But this is not all doom and gloom, you can potentially become very wealthy if you just position yourself on the right side of this transfer of wealth cycles.

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Saturday, 17 March 2012

Before You Sell Your Gold and Silver

If you look around yourself you will surely notice that websites, TV commercials and people are talking about the high price of gold and silver as both of theirs price have increased phenomenally, in fact silver has shown unexpected growth in the past few months, so much so that people are nowadays saying that silver is the next gold.

Investment experts are saying that smart people are going for gold but smarter people are interested in silver. Whether you want to vend gold sovereigns or silver bullion, the present time is the most suitable to do it. Even though everyone is saying so but consumers should not take any rash decision.

The first thing is to determine what you wish to sell, gold or silver. Silver bullion and coins are highly priced as they have a guarantee on these pieces; moreover if it is an antique silver jewellery you can get a premium.

Before you sell gold silver you must evaluate the items so as to get an idea of the price you will get.It is very important to identify the right dealer before you sell gold, silver items because you may end up in a scam and loose all your valuables. Always be careful of dealers who contact from mobile offices, moreover be wary of instant cash for gold businesses because by the time you realize something has happened the dealers would have vanished into thin air.

Then again dependable local dealers may not pay the best prices when you vend gold or silver to them.So it is always better to be an informed customer as it helps in having the upper hand when bargaining. Check the daily spot prices of gold and silver before you decide to sell gold silver. Spot prices are a good indicator and will help you to estimate how much to expect when you vend gold or silver.

Moreover selling your items to reputed dealers who take part in high volume transactions will help you to get your payments quickly and the biggest thing is that there is more safety in choosing big dealers.In the end remember that just as there is a time to buy precious metals there is also a time to sell gold silver.

Study the market movements, keep a track of price changes and keep a sharp eye for changing trends before you sell gold or silver. This will ensure that get the best returns when you sell precious metals.


About the Author
The author Ricky Cena is a freelancing Wall Street Journal reporter and he had written few articles of personal finance related articles. In his articles he shares his experience about online sell gold for cash

Monday, 12 March 2012

What is a Wealth Cycle?

A wealth cycle is simply shifting one investment from one sector that is over valued to another investment from another sector that is undervalued. Then you wait for that undervalued investment to become overvalued and then go through the cycle again.
The Dot.com bubble of the 90's is a prime illustration of this. What the majority don't know is, this boom started way back in the early 80's at the same time when the Gold and Silver bubble was bursting. At this time most of the money was shifted out of Gold and Silver and put into emerging tech stocks and internet start ups.
The price of Gold had gone from $850 in 1980 to $255 by 2001. What ended up happening with all this wealth going from Gold into tech stocks created the biggest investment bubble in history by 2000 at that time.
By 2001 the Dot.com cycle had reached a climax and all this wealth started pouring out all these stocks and into physical assets and real-estate.
Trillions of dollars were poured into the U.S housing market which in turned created the biggest housing boom in history. The cost of an average family home went from $169,000 in 2000, to $247,900 in 2007, then the bubble burst, and now all that wealth is flooding out of the real estate sector and into the next market which is Gold and Silver.
If you know how these cycles work, you know to sell the asset when it has reached its peak and then buy the next asset when its at its low.
Sadly though the people who don't understand these cycles do the exact opposite. They will get into an investment when it is near its peak, then end up freaking out selling at a loss and not understanding the cycle was already over, while the intelligent investor is shifting there investment into the next asset class.
Having the knowledge to understand these cycles has to be the first step to take before getting into any long term investment.
To really understand what makes the current wealth cycle (Precious Metals)the Mother of all cycles, we have to look back at what happened during the housing boom. An extraordinary amount of people in the U.S were given loans by the banks that just shouldn't have been given one. The banks then wrapped up all these loans that were defaulted on into derivatives and sold again. Money poured into the worlds economy unlike anything seen before, places like Dubai were built from no where in less than 10 years. People were spending massive amounts of money on fancy cars, boats, vacations and investments in the markets and purchasing them by using there homes as collateral.
While we know the housing bubble was the biggest on record, the problem with all this borrowing and spending was this housing bubble was getting blown up by these derivatives from the bad loans, so in other words the bubble was been inflated by toxic IOU's where there wasn't a hope n hell that they would be payed back. Unlike thetech bubble that was fueled by real money.
Then it all started to go down hill when on August 6 2007 the American Home Mortgage Company went bankrupt putting a pin prick into the housing bubble. Up to now these wealth cycles had been manage by real money that flowed from over-valued assets, to undervalued assets.
The down fall of the American Home Mortgage Company was a strong indicator that the worlds economy could no longer sustain anymore of this debt that had powered the growth that we saw in the U.S, in Dubai, in Singapore, in Malaysia, China, and so many other countries who went through housing booms. This was the day the bubble started to deflate, caused by all this debt which was packaged into derivatives and sold again and again and again. This was an event that was felt globally.
Whenever a credit bubble bursts its a deflationary event, for example the great depression was extremely deflationary.
Whenever a property goes into foreclosure, when someone can't pay back a loan or if someone goes bankrupt, all that money vanishes into thin air just like where it came from. Whenever a loan or credit can't be payed back the money supply tightens up and deflation sets in.
This is what happened in the Great Depression in the 1930's
And its happening all over again, with the bubble in the housing boom bursting there are estimation out there that over the last 2 and a bit years 60 Trillion worth of credit has been pulled out of the worlds economy because of deflation.
This was 60 Trillion dollars that was producing major growth globally and then with just a flick of a switch it vanished. All this wealth really was just an-optical illusion, and the worlds economy has been coming to a gradual slow down as all this debt unravels it's way through the system via deflation. In any other circumstance other than this present time this would be incredibly agonizing, but a necessity to resolve this problem naturally. The people and the businesses that made the wrong choices and who were careless with there credit amounts would suffer and have to pay the consequences as would be warranted. The smart ones would recover and rebuild and the process would exile the the ones who made poor decisions.
The difference in what is happening today is the governments and the financial reserve banks of the world who are trying to do everything in there power to stop this natural process from happening. And because of these measures they have pre-determined which investment type will be the next wealth cycle..... Precious Metals.
Sadly, if we look back in history there are tale tale signs that because of this change over of asset class is so big, it will take down the entire fiat currency system in the process.
But this is not all doom and gloom, you can potentially become very wealthy if you just position yourself on the right side of this transfer of wealth cycles.

About the Author

Married with 3 children , work from home as a investment professional. Investments include in Real Estate. Foreign currency market, ETF Trading and the Stock Market in general. Have recently turned to the internet to share my knowledge on different types of investments and thoughts on the worlds economy.
http://www.currencymoneyfinance.com/blog/

Sunday, 11 March 2012

Tips for investing in gold and silver

Before one goes for buying gold or silver purchase, one must understand the financial systems and economy. Recent times in India have seen a steep rise in the prices of petrol and diesel. Even the stock market is now rallying up. The point to be noted for any investor is that all these factors are inter- connected with each other in terms of rise or fall of the prices of gold or any other investment pasture. Taking into consideration the current scenario, it is wise thing to invest in gold trading. A number of factors suggest that buying gold is far more beneficial than going for stocks or shares.

Inflation is at an all- time high in present days. In addition, the economies of the major countries of the world are also unstable. These things then take a toll on the political factors of several countries. In such circumstances gold exchange is the safest bet in comparison with the stock market. This is because the gold market does not get highly affected by the political factors and provides better stability. Furthermore, liquefaction of money in gold sales is also quite easier.

Liquefying or cash for gold can be done at any time of the day. One must also consider the type of bullion to be purchased, while investing in gold. Bullion means the coins or bars that are made from pure gold or silver. Purchasing coins is seen as one of the best options by large investment companies. In addition, one can also invest in gold stocks and equities. Gold coins and gold bars come in different varieties of weights. It is not advisable to buy all 1 ounce coins as you may not want to sell an ounce of gold at once, if the market goes upwards.

Another factor that needs to be considered while buying gold is the right selection of the vendor. Most of the people tend to settle at the first place while trading in gold. This won't earn you too many benefits. One must always compare the prices of different vendors. Whenever you sell gold jewelry or sell silver, see to it that the prices are best suited for your purpose, as each vendor's price does have a slight difference from the others.

Last but not the least, always read the terms and conditions before investing as these investing companies are subject to market risk and it is advisable to read the offer document carefully before investing.

If you think, that you know all the tips to be considered while investing in gold, then it is only half a job done. You can reap the maximum profits only when you know the right time to invest in gold and silver markets. Investing in gold trading and silver purchase during a down economy is considered to be the most beneficial. As more and more people seem to realize this, we see a lot of investors splashing their money in the gold market rather than the stock market.

About the Author

Nowadays a lot of online websites have come up gold trading and silver purchase. These online websites offer top prices for gold exchange Algemene Voorwaarden,geld voor goud, goud inleveren.

Friday, 9 March 2012

Top Tips To Investing in Gold and Silver

Since the credit crunch and banking crisis, the financial markets are no longer sure-fire ways of making money. Stocks, shares and even government bonds are all looking shaky, while the more secure investment opportunities such as placing your money into savings accounts yields very little interest. However, one area of investment that still yields large profits and is incredibly stable is the buying of precious metals, in particular, gold and silver.

In 2001, gold cost just under £160 per ounce ($250). It has now reached just over £1,100 an ounce ($1,750) and is still climbing. The same is true of silver, which has gone from just over £3 an ounce ($5) in 2001 to a peak of over £30 ($50). Precious metals such as gold and silver have been the best performing assets for several consecutive years now and with the current difficulties with the Euro and lack of economic growth across Europe the UK and USA, gold and silver prices look set to continue rising.

The Market

While both gold and silver prices vary day-to-day, the general trend for the last ten years has been upwards. So putting your money into gold and silver is a wise investment, but it’s worth understanding how the precious metals market works before taking the splash.

Gold, silver and other precious metals are regarded as stable assets by investors, but that doesn’t mean that their prices can’t drop. Successful investment in anything is about diversification and not putting all your eggs in one basket. This means that if you are considering investing in gold, silver or other precious metals, it’s wise to spread your investment rather than just throw it all at the one commodity.

It’s also important to know when to invest in gold or silver. While the general price trend has been upwards, gold and silver prices vary day to day. Choosing a time when prices are relatively low, means there is more chance the price will rise, which will get you a return on your investment. The financial press or business pages of your regular newspaper usually contain daily information on what the price of gold and silver is doing, which is worth studying to help you know when is best to invest. It’s also important to keep abreast of the prices when you have eventually invested your money, so you know when it is the best time to get it out again.

Type of Investment

You don’t need to fill your house with gold or silver bullion bars and coins to invest in precious metals, although this is one option. Gold and silver can be bought like any other commodity on the financial markets, and there are a number of ways of making investments:

• Buying physical gold. If you have a safe or safety deposit box, buying bars and coins is a simple way of investing in gold or silver. You can simply keep them until prices start to fall and then resell. You will of course have to pay commission on any sales, so it is important to factor this in with any investment.

• Gold accounts. Several offshore banks offer bank accounts that enable you to turn cash into gold. In essence, when you put money in, the bank changes it into gold and stores it for you, converting it back when you want to get your investment out.

• Trade funds. Gold and silver can be bought and sold through the stock exchange. As with other stocks and share trading, you need to get a stockbroker to make the transactions for you, who will of course, charge commission.

• Spread betting. Rather than investing directly in gold and silver, spread betting allows you to bet on the rise and fall of gold prices. This allows you to speculate on gold and silver without actually owning it.

• Investing in mining: Another way of investing in gold and silver is to buy shares in the mining companies that dig it up. When prices of gold and silver are high, the values of these companies rise, but you can make money on mining companies in other ways too, as acquisitions, mergers and the discovery of new precious metal deposits all affect their share price.

Other Metals

Gold and silver are not the only precious metals that provide a stable and low risk investment. Other precious metals such as platinum and palladium also offer potential investors a good return on their money. Furthermore, even non precious metals such as copper, tin and iron have all seen large price rises in the last few years and could provide the wise investor with good yields.