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.

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.

Social Capital and It's Importance

Recently I came across a article which described about Social Capital and its importance and how we can save a lot of money for little or nil effort. And here I wish to give you a brief outline of it and show you the value of the social capital. What is social capital? The Social capital is the capital which is obtained through service to others. With every service rendered, you get a chance to get some favor in return. For life in the big cities, it is certain that it is more difficult to accumulate social capital because people know little and therefore do not see the value of helping someone. However, in small towns, social capital is a much more powerful tool.

Large firms are much less present, and competition is less severe for small traders. Prices in chains stores like bakery, supermarket, mechanics, etc are extremely high relative to manufacturing costs. But shopkeepers in smaller cities may sell goods and provide services at a much lower price. A price that is even lower if you helped this person to move last week. Let us see how to create and use the capital with some examples. Helping your landlord to perform certain tasks in the building could help you reduce your few dollars rent and reduce in your share of maintenance expenses of the building you are rented. Organize your neighbor’s lawn and help him to mend repair his truck or be a baby sitter for someone. Using the social capital depends on what you need.

The idea of social capital is to serve without knowing what service you will receive in return, not even knowing if you need anything from this person in the future. This is why it is important to build social capital with people from varied occupations and knowledge: a kind of diversification of capital. To summarize, social capital is a very powerful tool that many can use to save money. Moreover, it is highly likely that social capital have preceded the money as a way to exchange services. The important is to build a kind of community of people around you who are able to perform various tasks and help you in many areas.

Oil Stocks Declining Globally Except US

According to the U.S. Agency for Energy Information (EIA), global oil inventories fell by 1.3 million barrels per day in last 60 days. A situation largely due to consumption exceeds production. On average over the last two months, stocks have been valued at 2.652 billion barrels; while the figure of 2.649 billion was recorded in the same period of 2012.World production meanwhile was 83.3 million barrels per day in January and February, against 83.4 million in the comparable months of 2012. At the same time, consumption has reached 86 million bpd, against an average of 85.3 million in January-February 2012.

 Information on global stocks comes as the abundant supply overseas increasingly worried investors. Fears, which increased Wednesday following the release of statistics showing an increase in the trend. According to the weekly report from the U.S. Department of Energy on oil reserves, U.S. crude oil inventories rose 1.1 million barrels in the week ended Feb. 22. Experts noting they are now at their highest since July to 377.5 million barrels. Situation was due to both less energy consumption than a sluggish increase in crude oil production of 14.6% in 2012 compared to the previous year in 2012, something that had not been observed since 1995. A context that could worsen in the absence of agreement on the U.S. budget obtained - in extremis - Congress on Friday. Such an outcome automatically opening the way for drastic cuts could lead the United States into recession. Means lower demand for crude.

How to become rich?

You learned good principles in your life that help you manage a large number of situations that you are facing. Forget them when it comes to managing your money as applied not make you richer. But probably makes you poorer. Here are six principles you have to strictly follow to become rich: Do not settle for average. Search for the best. Funds "means" as index funds perform better than 80% of actively managed funds. Trust in your instincts and what your heart tells you. It is better to listen to your brain and if you sell coldly losses, rather than thinking that prices will rise and you will chase your losses.
 If you do not know how, ask an expert. Seek help from an expert may be useful in the case of complex financial or very specific topics such as taxation. To manage your money, especially if you want to get rich, no one will do better than you. You'll get the price you pay. In terms of investments, the less you pay fees and the yield obtained is important. Crisis, we must act quickly to resolve the problem. Do not panic. Invest every month and you can enjoy automatically the benefit, the market declines or increases without you pack whatever the trend.

 Is to invest regularly over time is important. History repeats itself. As it is written on every financial prospectus, "Past performance is not a guarantee of future performance." Do not choose funds based on rankings of the year; look at the behavior of the bottom 3, 5 and 10 years. Behave wisely in case of market volatility and market down trends. Because what you have learned does not apply with respect to managing your money, you must spend at least a minimum time to acquire a financial literacy. It is this; investment in time that makes the difference between a successful investor and one who realizes low performance.