Showing posts with label long term investments. Show all posts
Showing posts with label long term investments. Show all posts

Tuesday, March 5, 2013

Why you should invest in Gold?

The Periodic Table of Commodity Returns in a user friendly format shows a decade of results across 14 different products. Last year, 11 products have increased in value with the wheat harvest in top of the list after experiencing quite a decline in 2011. Then later the following metals lead, zinc, natural gas and platinum entered the race for the rich. Their values have seriously increased in 2012, 2011 being the year of the falls. Only 3 products declined throughout year 2012: crude oil fell nearly 7% after an increase of 8% the year before. Nickel declined for the second consecutive year. In 2012, the metal has lost 9%, while in 2011 it had dropped to 24%.

 Coal is the least performed product than all other products in 2012, falling by nearly 17%. It had a bad dead lately. In fact, this product has no known heyday for the last 5 years (although in 2010 the metal is Designed an increase of 31%). As we can see in the table, the products often suffer from significant price fluctuations from one year to another due to many factors affecting supply and demand as government policies, trade unions and strikes currency volatility. This is why when it comes to commodities and commodity producers, many investors decide to hand to portfolio managers who understand the industry products and global trends that may crack on each product.

 For example, gold and mining companies: After investing in the gold industry for decades, we noticed several facts about gold continue to surprise investors. Here are few of the most recent developments: Gold has grown steadily for more than a decade. While the yellow metal has had its ups and downs in 2012, gold continues its course. It finished the year up 7%. It's been 12 years that gold is rising. The table shows the position of the other gold products every year. What is fascinating is especially the recurrence of this cyclical increase over three years compared to other products. This scheme would allow predicting that the year 2013 would be the springboard for a sharp rise. Gold should be a strong product in 2013.

It seems that the printing will continue to operate against the wishes of some central banks balance sheets. Gold will know good days of coming months. Let's take a look at the projected increase in the balance sheets: as% of GDP (GDP) of the ECB, the Bank of Japan, the Federal Reserve of the United States and the Bank of England in 2013. It is estimated that the ECB's balance sheet reaches almost 50% of GDP by the end of the year. The Bank of Japan is located just behind the ECB with a balance that is close to 35% of GDP. Can we rely on these assessments? If we take into account the reckless actions of central banks, it would be better to hold gold as paper. Interest rates do not go red, gold still keep its brilliant shine for another good year. Gold is the product which is less volatile in the table. This may be surprising but gold is the least volatile of the 14 products. The last 4 years have been better than we thought. Gold knows a good rise since 2009. 2013 should confirm this upward curve.

Friday, March 1, 2013

Why Gold and Silver is always a good investment?

In recent years Gold, considered as a safe haven, gradually changing status to states and savvy investors to regain its historic role as the reserve currency. This should lead many investors to make an investment vital for years to come. End of 2011, a significant change in status of gold has very little was echoed in the mass media: Venezuelan President Hugo Chavez demanded the return of the gold reserves of the South American country in the trunk strong national bank, its reserves are kept in the far western banks. At the time this request spent more provocation for Chavez to the west for a rise in the role of gold. But in January 2013, Germany the first power of Euro zone country much more symbolic, has called for the gradual repatriation, by 2020, all its gold reserves stored in Paris (374 tones) and some of those stored in New York (300 tones).

 End of 2012 the gold reserves of Germany amounted to 3391 tons, and accounted for almost 80% of foreign exchange reserves of the country. It is the second largest gold reserves in the world after the United States but to those of the International Monetary Fund (IMF - about 8,000 tones) and Italy (2,451 tons). France is in fifth position, with 2435 tons. The Euro zone crisis has led the German public, inspired by some conservative politicians to worry about the national stock of gold. The German equivalent of the Court of Auditors asked last October to establish an inventory of the gold stock of the country.

Euro skeptic politicians have publicly questioned the extent of German reserves abroad, asking for their repatriation. Germany justified the repatriation of reserves by the lack of possibility of change, but it clearly demonstrates that the national gold reserves are again a strategic issue. This decision may be treated as a major event (compare Gaulle's decision in the late 60s that had ended the Bretton Woods system) which foreshadows the return of the gold standard. Countries have clearly lost confidence in the central banks (New York Fed and Bank of England), supposed to hold physical gold on behalf of many states. The gold is perhaps more simply as GATA says, lent to banks and sold on the market to keep prices under pressure. Thus, they save more time confidence in the monetary system of silver "paper" not convertible.

 In addition, the market for paper gold, would be a hundred times larger than the physical market. The day that investors will obtain delivery of their gold-backed paper that there will not be enough physical gold to satisfy demands. Gold is a material present in limited quantities in the world and its scarcity intensifies over time. Repatriating its gold, Germany eliminates counterparty risk and ensures really hold physical gold and not pieces of worthless paper.

With these repatriations that give us a strong signal of progress towards the degradation of confidence in currencies, families should reconsider the amount of gold and silver to possess. Gold is money. Its role is to safeguard the wealth. Especially the yellow metal still beautiful day ahead when we know that less than 1% of financial assets in the world, destroying every argument bubble in gold. At the same time, monetary impressions launched by the Fed and the ECB devalue paper currencies and does not restart the economy. Gold (and silver) continue to reflect the destruction of paper money. It is not gold rising; the dollar, the euro and the pound sterling fall and this may continue. These safe havens are not diluted by central banks.

Silver is also a precious metal and historical ratio gold / silver is 16. That is to say that every gold coin you possess worth 16 pieces of silver. Today this ratio is greater than 50. Thus, investing in silver metal should be more profitable in the long term, provided they are patient and mentally strong to withstand fluctuations in its price. To eliminate the risk of counterparties must hold his gold outside the banking system, directly in physical gold. I advise to hold a small portion of its assets in precious metals, in order to keep this future security. Money that we do not need a long-term horizon may be invested in it. Invest around 10% of your assets in gold and stumbling sounding reassured, but for the rest

 I prefer you to invest in developing your income. Precious metals have this defect, they produce nothing. Besides this, you can buy stock of assets, real estate, which in turn will generate regular income.

Wednesday, April 27, 2011

The Long term credit

The long-term funding is a funding for a period of not less than seven years. The credit is generally used to finance the purchase or construction of property of significant value, for example, buildings or industrial buildings, large equipment whose useful life is more than seven years.  It is also the capital funding for businesses, but the amortization period exceeds seven years. So it's heavy capital.

 Thus, when a company or an individual looking for a competition to fund the construction of a road, a factory or a building, it is clear that the importance of investment capital is such that reimbursement may be considered in time similar to those of medium-term credit for the good reason that the tax depreciation of these investments may not be realized in the long term.
 In fact, the newly built factory will bear fruit only after several years.  It leads inevitably to the concept of depreciation that occurs and determines the time of repayment.

 It is therefore imperative, like the medium term, to focus the profitability of the company and consider the elements on: the evolution of turnover in recent years and its prospects especially future, and the cash flow of past and future, net profit after tax also past and projected.
Unlike the medium term, the proportion of bank intervention that is 70% or less of the total project to incur the long term is limited to 50% maximum.  All the rest of the conditions and terms for this category of credit remains the same as the medium term.

 Finally, it is clear that the classification, whether it is long-term credit or the medium term credit is only according to their duration, which is, more than seven years and can reach 20 years and over, for the long term,
and between two to seven years for the medium term. The fact remains that it is closely and directly from the purpose and its funded depreciation determines the time of repayment.

Wednesday, December 23, 2009

Long Term Investments versus Short Term Investments

There would be always a debate going on whether long term investments are best or short term investments are best. There will always a fifty percent people vote for long term investments and a equal percent of people would opt for short term investments.
Long term investments are investments held by a person for more than one year. Any thing less than that would be considered as short term. Long term investments can be held from one year to a decades. Short term investments can be held from one day to one year.
Even a single day would be enough for the you to get a return from it. Whether it is long term or short term, the utmost important factor is timing the market and picking the right security. Without this no investment would give you a good return.
I prefer long term investment over short term investment just because, even if you have missed the right time but you have chosen the right security, then still you are likely to end up in good investment.
In short term investments, you have to time the market properly. Otherwise, instead of profits, you may end up in loss. The risk is more in short term investments. The short term investments would not give you a second chance. But long term investments do.
Whether is long term or short term, time the market for profitable investments.
Happy investing.