Investment in Gold Stock

  Today gold does not freely circulate as everyday currency, but it is widely found in many investment and retirement portfolios. If you want to diversify your portfolio, you would want to invest in gold stock.

 Types

  There are two basic types of gold stock options with a great number of variations: puts and calls. The most popular option is the call option. Purchasing a call option on a gold stock gives you the right but not the obligation to purchase a specified number of shares of the underlying stock for a set price at any time prior to the expiration date. Owning a put option gives you the right to sell a specified number of shares of stock for a set price at any time prior to the expiration.


  Gold stocks are not gold - rather they are shares in gold mining companies. If the gold price rises, profits of a gold mining company should rise and as a result the share price should rise. There are many factors to take into account and it is not always the case that a share price will raise when the gold price increases. It is important to consider different factors which influence gold prices as well as on political, economic, nationalization or environmental risk.

 Gold stock options

  Stock options are a contract between two parties that expires at an agreed-upon time in the future. The contract purchaser is buying the right, but not the obligation, to buy a gold mining stock (a 'call' option) or sell (a 'put' option) a gold mining stock (the 'underlying') at a specific price, on or before the agreed-upon date, the date of expiration.

  Speculating in gold and other precious metals can produce spectacular results, but it can also result in dramatic losses. Investing in gold stocks or gold stock mutual funds spreads the risk around. For seasoned investors who want to have a stake in this potentially lucrative market but who also want to limit their liability, the answer might be stock options in gold.

Global Distressed Property

An examination of the figures shows that the real estate market is far from normal. Distressed sales totaled more than 1.2 million last year, a 25% increase from 2008 and a more than four fold rise from 2007. They made up 29% of all sales last year, up from 23% in 2008 and 6% in 2007. The average foreclosure discount was 25% in 2009, 22% in 2008 and 26% in 2007. ‘A normal market would show foreclosures accounting for less than 2% of sales
Fewer countries report an increase in distressed properties coming to market in Q3 than in Q2;
Property professionals in more countries are seeing growing enquiries into distressed listings from specialist funds
The outlook for future distress picked up with more countries seeing rising distress expectations compared to Q3
US and UK report greater levels of distress, whilst Russia, Hong Kong and Brazil report falling levels
Properties in default or scheduled for auction sold for an average discount of almost 15%, up from almost 14% in the previous quarter and down from 16% a year earlier. These homes are often sold in short sales, where lenders accept less than the outstanding loan amount for the property. Sales of properties either in default or headed for auction accounted for 12% of all sales.

If you are a private investor, looking to take advantage of the current market conditions for property investment, you have some cash to invest and you are seeking hugely discounted or distressed property sales that will give you cash-flow positive high yields, large future potential price gains or both.

Discounted Property Investments:

Highly discounted new-build developer stock and resale buy-to-let properties - apartments and houses

Access to bargain overseas investment properties from distressed or highly motivated sellers/ developers

High Yield Property Investments:

High income student investment property - new-build private halls of residence and traditional housing - the recession proof sector

High income UK holiday lets - a smart and tax-efficient investment and the top performer for the last decade.

a Review of Capital Alternatives

I’ll begin this article, by just simply wearing my heart on my sleeve. Good investment advice is hard to find!!!

Over the last century, investment advisers have morphed into commission chasing junkies that simply do not have their clients best interest at heart. This creates a very difficult environment, especially for the novice investors. Fund management companies charge an arm and a leg in management fees and many financial advisers are more concerned to steer your money into products which will pay them the best referral fees.

Granted, many government institutions in the US and Europe has done a great deal to address this gross imbalance and things has started to get a bit better, bit this kind of behaviour is still prevalent in the marketplace.

On this blog I will do my best to point out the sharks in the trade and to also give credit to the folks that really do a good job.

One of the ‘nice guys’ in the industry is a London based company called, Capital Alternatives.

These guys have been around for a good few years now and have firmly established a good presence in the market for alternative investments. So what makes them better than the others…?

First of all it goes without saying that the quality of their brokers is second to none. When I deal with someone I want to have an intelligent conversation on variables that affect the market. I personally expect a well-rounded broker that has a firm grasp on the broad picture and can therefore tailor advise accordingly. This is one area these guys excel at.

Secondly, and this is a huge issue for me, is transparency. Their updates to clients are both frequent and in-depth. The alternative market has a tendency to lack in this area, but a brokerage can make up for this in their level of service and frequency of updates. Capital Alternatives makes it happen and for that I am glad.

Lastly, is transaction charges. The market for alternative investments tends to be relatively ‘infant’ in its growth cycle and this can easily prompt many players to charge extortionate charges. With Capital Alternatives, their fees are competitive and often include no annual management fees. This frees up more opportunity for investors to take advantage of significant potential Return on Investment.

I will keep a close look at different companies, but can in the meantime highly recommend Capital Alternatives as a reputable organisation to deal with.

Agricultural market overview

Europe is largest market of organic produces in world and consumes around half of the world produce of organic production .EU is a net importer of cereals, oilseeds, potatoes and vegetables.

Within Europe, Germany is largest market for organic products with sales value of around 2.5 billion Euros ($2.3 billion (US)). On an average the per capita spending on organic produces in Europe was 23 euro.

Global grain production is falling at 7.5% annually, whilst global grain consumption is rising by 2.5% each year, enlarging the gap between supply and demand. If you factor into this that Wheat prices are at a 2 year high, with all our investors receiving dividends exceeding their initial expectation and you have a solid shippable investment.

So far this market has attracted funds from institutional investors who have invested £8 billion into agricultural land over recent years. Literally turning fund managers into farmers, as demand for this type of alternative investment is at an all time high and is only set to continue on its growth trajectory with anticipated ROI of 15 -22%

This leading alternative investment offers Excellent Financial Returns with structured exit strategies at 5 years, to institutional funds with projected capital appreciation of 261%

Commodity prices are often highly cyclical and dependent on various factors of supply and demand. Since June US wheat prices have increased by over 70%.

Over the past 30 years, the world's population has grown by more than 50 per cent to over 6 billion, and is expected to increase by the same proportion again by 2050. Yet the world's food supplies are failing to keep up. Many of the farms in developing countries produce small yields, and need help and more modern farming equipment to help them produce larger amounts of produce.

Investing in technology

From the individual to the largest organization, everyone today has to make investments in information technology. Technology is a sector well suited to venture capital investment, as it offers the potential for high growth and high returns.

There are various ways to invest in the technology area. Some brokerage houses do offer technology index funds that include a cross section of technology companies. The other method is simply to pick stocks from the technology sector that offer sustained growth, good value and potential for the future. Investing in Technology Stocks has been considered as high risk.

The list of products and services in the pipeline of small, medium and large companies is astounding. Within the field of technology is the corner stone of all the products is security software and services.  

The specific areas that appear in my opinion to be situated well for future growth are in

• health care related stocks,
• multi-media and graphic software,
• security software,
• Networking and communication devices and specialized areas of electronics.

 There are other categories, but these areas of technology are poised for future.

   Businesses make significant investments in technology--purchasing software, computers, networking tools and other components necessary to stay current, drive business and sustain their competitive stance. For five years the Internet has developed, and firms have largely begun to adopt its technologies. A few firms have hit Internet technologies hard, developing substantial expertise in their internal value networks for using, developing, and marketing their capabilities with these technologies. Firms have moved forward with developing firm web sites, intranet-based knowledge management projects and client-centered extranets. 


Technology has made information more available than ever before. Indeed, health informatics is a field that focuses on using technology to improve our quality of health care. An index of health-care companies in the S&P 500 rose 0.8 percent.

Technological development in the mobile marketplace as a whole is fast-paced and with patients rapidly adopting smart-phone technology and applications in their personal lives, it is only a matter of time before they come to expect the same capabilities and speed of service when they access healthcare services too, whether public or private.

Boston based private equity and venture capital investment firm, Summit Partners today announced that it has invested $100 million for a minority stake in AVAST Software, makers of the world’s most popular antivirus software.

Alternative Energy

Fossil fuels, coal, oil and natural gas, are a non-renewable source of energy.

Alternative energy is an umbrella term that refers to any source of usable energy intended to replace fuel sources without the undesired consequences of the replaced fuels

The stock market has a worrying message for the future. It suggests we may run out of oil a century before we have an alternative fuel ready to replace it.

Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable (naturally replenished)

  

       Seven of the most promising renewable energy technologies:

·        advanced bio fuels,

·        electric vehicles (EVs),

·        concentrated solar power (CSP),

·        solar photovoltaic (PV - solar panels),

·        onshore wind power,

·        offshore wind, and so-called "clean coal" through carbon capture and sequestration (CCS) - and assesses their potential to make a market impact on cheaper, more conventional energy sources

Renewable energy sources like concentrated solar and photovoltaic solar systems are the most viable technologies likely to challenge the dominance of fossil fuel on the global energy scene, according to a report released by the Boston Consulting Group (BCG)

.

  Power generation overall increased 8% during 2010 and wind and hydro accounted for 20% of total power generation in the first 9 months. Also, 9 months report for 2010 shows a 54% increase in revenue from wind and hydropower.

 Fossil fuels are of great importance because they can burned (oxidized to carbon dioxide and water) producing significant amount of energy per unit weight. Nevertheless, investors do not expect the replacement of oil-based fuels with renewable for another 100 years. Investors put far more money into the traditional oil companies than into alternative energy companies. Therefore; investors believe that in the near future the traditional oil business is going to do better and to occupy a considerably larger share of the energy market than alternative-energy companies

Diamonds is a sparkling investment

Most rare stones will in time increase in value.

 


When the stability of the economy is in danger, the investor wants to protect its investments from devaluation.

It is a secure investment: formed in millions of years, diamonds are inalterable. Their value is not linked to the value of money. An investment in diamonds does not bring in instant revenue but can add value to the amount of money that is invested.

Diamonds are unalterable
- Diamonds are discreet as they provide the means of keeping the strongest value in the smallest volume and weight (5 carats of diamonds, i.e. one gram, are equivalent to several kilograms of gold)
- Diamonds are likely to increase in value in time over long periods.
- Diamonds do not require any specific management. They are generally kept in a safe place.
- Diamonds are forever beautiful, unique and eternal.

It is therefore advice to buy, in terms of secured value, diamonds of superior quality categories. It is recommended to buy round diamonds, with colors D, E or F with IF or VVS quality and weighing 1 carat or more. For the other criteria (proportion, polish and degree of fluorescence) must of course also be good.
Approximately 20% of mined diamonds are used in jewelry and 80% for industrial uses (such as lasers, drill parts and surgical equipment).

The United States is the biggest consumer of diamonds in the world. It accounts for 35% of diamond sales, Hong Kong 26%, Belgium 15%, Japan 6%, and Israel 4% Israel and Belgium in particular are important diamond-trading hubs thus their consumption numbers are misleading.

Globalization of wine

  

Globalization is not new to the world’s wine markets, but its influence over the past decade or so has increased dramatically. More wine is flowing across international borders than ever before. As a result, consumers are seeing (and drinking) more and more wines from the US, France, Australia, South Africa, Chile, Italy, Canada and many other countries. A bigger wine selection at the local grocery store is great, but what's behind this globalization trend?

    There are basically three models for wine marketing in the world today that correspond to the three largest import markets for wine: the U.S., Germany and Great Britain.

   The U.S. model is built around brands owned by wine companies. Winemakers big and small seek to establish a brand or reputation that will help them sell their wines to consumers who need a trustworthy indicator of value and/or quality. Building reputation is complex and brands are part of the process, but not the whole story, of course. Americans typically look to brands for quality/value information when shopping in general and so it is natural that wine brands are so important here. Because there are lots of market segments for wine and many competing brands within each segment, American retailers stock a lot of wine.

   Then there is the German model, which is all about low prices. The average “bottle” of German wine is sold in a discount store, often with a house brand name, and costs about a Euro per liter. I put “bottle” in quotes because sometimes it comes in a juice-box type container. Decent quality for less is what the German market seeks and the discount chain’s reputation for value seals the deal.

   Finally there is the British model. Britain is by most accounts the most important wine import market in the world and the key players there are the supermarkets such as Tesco and Sainsbury’s. Because this market is so important to wine exporters, you can find wine from every nook and cranny of the global market in British stores. But because this huge selection can be confusing to consumers (especially French wines) and discourage them from making a purchase, the stores themselves (not the wine producers) have launched their own brands, like the Tesco’s Finest Bulgarian Cabernet Sauvignon or, for example. Or the Sainsbury’s Marlborough Sauvignon Blanc shown here, which offer a limited range of global wines under the store’s own label. The Tesco brand gives consumer confidence to try an unfamiliar foreign wine (a Central Otago Pinot?) that they might otherwise avoid. Tesco and Sainsbury’s don’t make the wine, of course. They contract with local winemakers to supply the product. The stores add value to the bottle by lending it their reputation through the store brand label. And, of course, they use their efficient distribution system to get the bottles into consumer shopping baskets.

   This globalization also improved the consumption of wine as most of the people in different countries approach wine as a drink for the wealthy like US and can acquire high quality wine at reasonable prices.

Top 20 investment tips

1.   Pick a strategy and stick with it.
Different people use different methods to pick stocks and fulfill investing goals. There are many ways to be successful and no one strategy is inherently better than any other. However, once you find your style, stick with it. An investor who flounders between different stock-picking strategies will probably experience the worst, rather than the best, of each. Constantly switching strategies effectively makes you a market timer, and this is definitely territory most investors should avoid.
2.   If you are dealing with a wine fund or specialist wine investment company, look at their track record. How have their funds or portfolios performed historically. Also check what charges and commissions are involved.
3.  If you are buying independently for a capital return, stick to investment grade, red Bordeaux from the best vintages. Bordeaux makes up over 90% of the wine investment market. Bear in mind that generally, the back vintages offer greater investment potential than more recent vintages.
4.   When you are buying wine for investment (or drinking), always compare prices and shop around. A good way to do this is on www.winesearcher.com
5.   Rather than buy a large number of inexpensive cases, it makes more sense to buy a small number of high value wines. Otherwise, annual storage charges will significantly reduce your profits.
6.   Generally, wine does not attract capital gains tax as it is considered a wasting asset by the revenue.
7.    If you are buying wine, do not invest more than you can afford to lose. Wine has proved to be a resilient asset class over the long term, but recent events have shown that wine prices do go down as well as up. Wine should only represent a small part of your overall investment portfolio.
8.    Champagne has provided some very good returns to investors over the last two or three years. At times it has even outperformed top class claret. However, only stick to the top prestige cuvees such as Krug Vintage, Roederer’s Cristal and Dom Perignon. Also bear in mind that some consider Champagne to be a more risky investment compared to red Bordeaux.

9   Do not keep un-real expectations or expect abnormal returns on your investments. Do not make extra commitments in the greed to have extra and more returns. Do not overstrain yourself.
10   Make all calculations yourself, instead of depending on the seller. Try to make a benchmark of reasonable return and concentrate on the strategy.
11   Do not exit from any kind of investment because some other investment promises a better return. It’s best not to make a decision on others tips and suggestions. You have to make a difference on the basis of projects and products which are offered.
12   If you are making an investment in real estate, lay stress on the location. This is an important criterion which needs serious consideration.
13   Check out the value appreciation graph of your existing investments before you think about withdrawing from any kind of investments. Do not repeat any mistakes which you have done in the past.
14   You should know more about people who are involved with your investments. This may be your builder, realtor, banker, developer or consultant and try to find out more about them. This will help you to understand if you have made a correct decision.
15   Check out and know about any recent trends of the market and keep a track of all prevailing technological advances
16   If you are making an investment do not go for ‘value for money’ deals.      Instead you should take time to make evaluations on the basis you will invest your hard earned money.
17   Do not hesitate to ask and act. As a buyer it is natural to have many questions. Do not progress if you have doubts in your mind as you will make wrong decisions.

18   Don't overemphasize the P/E ratio.  Investors often place too much importance on the price-earnings ratio (P/E ratio). Because it is one key tool among many, using only this ratio to make buy or sell decisions is dangerous and ill-advised. The P/E ratio must be interpreted within a context, and it should be used in conjunction with other analytical processes. So, a low P/E ratio doesn't necessarily mean a security is undervalued, nor does a high P/E ratio necessarily mean a company is overvalued.

19    Focus on the future.
The tough part about investing is that we are trying to make informed decisions based on things that have yet to happen. It's important to keep in mind that even though we use past data as an indication of things to come, it's what happens in the future that matters most.

20    Be open-minded.
Many great companies are household names, but many good investments are not household names. Thousands of smaller companies have the potential to turn into the large blue chips of tomorrow. In fact, historically, small-caps have had greater returns than large-caps; over the decades from 1926-2001, small-cap stocks in the U.S. returned an average of 12.27% while the Standard & Poor's 500 Index (S&P 500) returned 10.53%
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alternative investment

 Hello all,
 I am Jonathan Healy

I invest money to earn them. I would like to give independent opinion based on internet research about alternative investing.

They are alternatives to conventional investments that are essentially listed securities, cash and bank deposits and lending. Most alternative investment assets are held by institutional investors or accredited, high-net-worth individuals because of their complex nature, limited regulations and relative lack of liquidity.
Examples of alternative investments include:

• commodities,
• hedge funds
• private equity
• Collectibles (such as stamps, art, antiques, etc.),
• Wine.
• financial derivatives

Alternative investments are favored mainly because their returns have a low correlation with those of standard asset classes. Because of this, many large institutional funds such as pensions and private endowments have begun to allocate a small portion (typically less than 10%) of their portfolios to alternative investments such as hedge funds.  

While the small investor may be shut out of some alternative investment opportunities, real estate and commodities such as precious metals are widely available