Archive for January, 2010:
The Gold Spot Price Explained
As the name indicates, spot price is the fee of any item that is to be paid immediately on purchase. Similar is the case for gold spot price i.e. the amount that you pay in order to get a particular quantity of gold. It is also sometimes carried out one or two days before the actual trade takes place, but in normal cases this period never exceeds this limit. In simple words, gold spot price is the price at which the market is buying and selling gold.
Gold items are one of the most expensive articles; hey are precious gifts for a woman, and a man can give gold jewellery to his lady. Buying gold is nothing less than a technical task due to its high price which is also quite volatile. The price changes rapidly according to the situation of the market and a country’s economy.
Gold spot price is the twice a day setting of the value of gold against the British Pound as a commodity by the five members of the London gold pool. This rate is then converted into US dollars while Euros is used as a benchmark for the pricing of gold, its worldwide derivatives and products.
The spot price of gold is set in terms of British pounds, per ounce of the precious metal, by the London Gold Market Fixing Limited in a secure teleconference at 10:30 a.m. and 3:00 p.m. London time on each trading day. Physical gold can be purchased at the spot price from a variety of sellers that will deliver bullion to you or sell you gold that they possess in their vaults. Makers of gold coins and other similar products usually sell their wares above the spot price without verifying the purity of their items.
There are various tricks through which you can buy gold by paying not a penny more than the spot price. The first of these tricks is to make comparisons. Compare the gold prices that companies offer with the current gold spot price. Make a purchase over the phone or through a secure online order form. Find out the details of delivery if you are purchasing physical gold or request a written record of the transaction if you are buying a share of gold in a vault.
Another very useful trick is to use common sense and avoid sellers of gold coins along with other such items if you are looking to purchase this precious metal at the spot price. Coins are often not verified in terms of purity, so you may be paying far more for them than the actual gold content it contains.
Finally, find out how quickly you can execute an order to sell your gold if you are buying gold from a company that sells ownership of it in their vaults. You could lose a substantial amount of money on price movements if the dealer delays buying back the gold that you have purchased.
Learn how to buy gold in the times of recession for investment in the experience of professionals.
Article Source: http://EzineArticles.com/?expert=Jack_Wogan
Mistakes to Avoid When Trading Penny Stocks in 2010
Most people are attracted to penny stocks because they think big returns and big profits with smaller investments. While some folks can get ‘lucky’ and strike it rich quickly with a few trades, most will find themselves in the red unless they learn how to do it ‘right’. Here are a few common mistakes made by novice and intermediate investors alike that you would want to avoid if you plan to make any money (or continue making it):
Fact checking
This phrase is very common in journalism. It basically means verifying the facts in any article before publishing it. Wondering how this is related to trading? When you hear about a ‘hot’ penny stock either via email or through your online research the first thing you need to do is to add it to your ‘Research more’ list. Some traders, especially newbies, just drop everything they are doing and start finding everything they can about this new find because they fear that they will miss out on an incredible opportunity. Nothing could be further from the truth. If you are trading penny shares there will be enough good picks coming your way once you have gotten your feet wet. Be patient. When you are looking for a new stocks to trade, you should open up your ‘Research later’ list and then pick one for further investigation.
Confusing luck with skill
This is more common than you would think. Especially in raging bull or bear markets a lot of investors make profitable trades. In the late 90s just before the dotcom bust happened, even cab drivers were giving recommendations. Nearly everybody was throwing money at the stock market hoping some of their picks would stick. A lot of investors made money. Was this because they had amazing investment analysis skills? Maybe a few did. The majority just got lucky. Similarly in the financial crisis of 2008-2009 a lot of traders were shorting the market when the DOW was losing couple hundred points every other day. It’s easy to get it right when there are heavy trades going in a single direction. We suggest you keep an investing journal. This is where you should track every successful and unsuccessful trade that you make. After a while you will be able to see where your strengths and weaknesses lie. This one skill can make you a better trader. In fact, we recommend keeping a journal even while you are paper trading. Who said you *have* to lose money just to get the lesson?
Poor money management
This is something that annoys us to no end. Do not invest money in stocks unless you have a rainy day fund set aside with 6 months of expenses set aside. Nobody likes to lose money but the funds that you will use to invest in equities should be money that you don’t need. This is not because we expect you to lose all of it. But, this is the only way you won’t lose sleep over your trades. If its money you can’t afford to lose, then you can expect a lot of sleepless nights.
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Good luck profiting from the right penny stock investments.
Article Source: http://EzineArticles.com/?expert=Mike_Singh