Your Questions About Investing In Mutual Funds

David asks…

What is the accounting for investments in mutual funds?

Hi, I’m interested in IFRS accounting policies for investments in the units of mutual funds.
In my case, the mutual fund invests in some illiquid long-term assets like construction projects and property.
Any ideas would be highly appreciated!

Justin answers:

Presumably the intention at the outset is to hold these investments for long term. These would be classified as Available-for-sale financial assets (AFS assets). The initial recognition is to record the acquisition at cost (which would be the fair value at that time). At each subsequent balance sheet date, they are measured at the fair value, with any fair value changes recognised directly in equity, through the statement of changes in equity, NOT in the income statement. When the AFS assets are derecognised, the accumulated fair value changes previously taken to equity would be taken to the income statement.

Chris asks…

how to gain in investing Indian mutual funds?

in the time of BSE 19000–21000 points, i invested certain amounts. now 16000 now the investment is lower in capital.shell i wait for time

Justin answers:

You should have invested some more money when the market was all the way down to 8000. However, its still not a bad time to invest for the long term and you can put some money in mutual funds. However, now you must be prepared to wait for the long term.

Michael asks…

In yahoo/finance/investing/mutual funds, why does the Annual Total Return (%) History change?

In May 2007, I recorded performance data for VHGEX as follows:

2000 -0.17 7.27
2001 -3.73 12.29
2002 -5.61 12.97
2003 44.51 8.94
2004 20.09 4.55
2005 11.77 0.22
2006 23.59 3.93
Now, in July 2007, the return field for each year is the same, but the diff field (and presumably the category field as well, but I didn’t record that) has changed:

2000 7.02
2001 11.93
2002 12.85
2003 9.08
2004 4.52
2005 0.25
2006 3.88
Likewise for TRMCX, FLPSX, and several dozen others: the return is the same, as I would expect, and the difference vs. category changes. How can this be? What happened in the past is invariant; what are they factoring in that causes a change? I need good data for my evaluations; this seems like an “adjustment” that distorts the reality of what happened?
I understand why Trailing Returns (%) vs Benchmarks changes, since it is calculated from a moving date–last end of quarter. But for the other, I don’t get it.

Justin answers:

The difference column changes because the category is subject to “survivorship bias” which means the some members of the category are no longer in business, so they are no longer included in the category. The long-term effect of this is that the category overstates reality because the losers drop out, and the surviving members are counted.

James asks…

what’s the procedure for investing in mutual funds online.?

please tell me the procedure for investing in MF online step by step without going to any bank bracnh or mutual fund agent. please tell me any other important tips.

Justin answers:

Start investing in mutual funds

I have had a number of people ask me how to start investing in the stock market. Many simply want a road map to invest with out any vagaries. I have seen a lot of articles and heard a number of experts on this subject blab about vagaries on how to get started. This article is tells you just how to start investing if you are beginning investor. I am in no way being compensated by the fund recommended and yes I own this fund!

If you want to just start investing here it is step by step read on.

Contact mutual fund company

Contact Royce mutual funds and set up a Roth IRA account. You can do this online or over the phone. My experience has been they have been very happy to help. Be sure to set up E-delivery of prospectus and reports otherwise they will charge you 12 dollars a year for your account (custodial fees).

In my opinion this is the simplest way to get started investing in the United States stock market.

Invest in the Royce Low Price Stock Fund symbol RYLPX. I have owned this fund for years and I am glad I did. The Fund manager Whitney George has been with Royce for 18 years and has done a great job year in and year out.

Make regular contributions to your account.

Take some time to learn about investing. The more you learn the more you can earn.

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Your Questions About Financing Film Slate

William asks…

Should America boycott Actor/traitor Danny Glover?

Hugo Chavez to Finance Danny Glover Movies, Venezuelan government says it has approved funds slated for two films by close friend of Venezuelan President Hugo …

www.foxnews.com/story/0,2933,274564… – 6k – 2007-05-22

financi4 answers:

Notice the person above defending Mr. Glovers right to free speech but denying you yours. $20 says that she is a liberal.

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Issues to Think about Before Investing in Industrial Actual Estate

Using the initial stage to commit in real estate is a large one and one that can’t be taken lightly. Below is a list of checks and balances to go via during the because of diligence time period prior to you make a buy. There are fifteen problems not to miss:

1. Appraisal and Survey. Acquire a copy of the most current appraisal to validate the value. The appraisal will also offer other valuable information like similar building information. The survey will help in figuring out what is included in the buy, which might be much more or much less than what the present creating owner knows. Understanding the easements or any restrictions will assist evaluate if the property is adequate for its intended use.

2. Site Strategy and Floor Strategy. Get a disk with CAD drawings if possible. This will assist you in long term area preparing requirements.

3. Engineering Reviews and/or Environmental Reports. These are usually an excellent supply of information and background about the building.

4. Operating Cost History. Obtain the background for at minimum the final 3 years to figure out the net working income for the property. Clearly the more correct the data, the more comfy you will be with the cash movement estimates.

5. Budget. What is the professional-forma budget for the current year? Is the current owner preparing on positive money movement?

6. Richesse Enhancement History. Has the building been taken care of? Are there any enhancements taking place presently, or that are required in the near long term?

7. All Deeds and Title Insurance policies. Guarantee your self that it is a marketable title with no unfavorable restrictions.

8. All Agreements. This consists of recorded and unrecorded agreements granting any rights in any property by license, easement, or otherwise to any person or entity other than the current proprietor.

9. Certificate of Occupancy. Is there 1, and if not, is it required?

10. Creating Permits. Attain copies of permits for additions, major alterations or enhancements issued because the issuance of the certificate of occupancy.

11. Tax Expenses. Get copies of the most current tax expenses for the property, including any new notices of any new or pending assessments impacting the house. Get an comprehending of what the taxes will be after you have acquired the house.

12. Services and Maintenance Contracts. Evaluation all services and upkeep contracts in place and record get in touch with names and telephone figures, to include but not restricted to landscaping, snow plowing, janitorial, pest control, trash removal, sprinkler method, and alarm or safety systems.

thirteen. All Contracts. Obtain copies of all contracts relating to the creating for example, vending solutions, overnight delivery, alarm monitoring, and so on.

14. Warranties. Figure out the warranties that exist for the creating which includes but not limited to the roof and HVAC methods.

fifteen. Present Leases. What the typical duration of term for the present rent roll? Will you be needed to discover actuel immediately? What are the present lease prices?

This checklist is not meant to be legal advice, however you will find your self in a a lot better negotiating position following you have reviewed these factors prior to investing in .

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Your Questions About Stocks And Bonds 2012

Chris asks…

Prepare a statement of cash flows for the Crosby Corporation. Follow the general?

Preparing a cash flow and answer the following questions?
Prepare a statement of cash flows for the Crosby Corporation.

CROSBY CORPORATION
Income Statement
For the Year Ended December 31, 2008
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,200,000
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,300,000
Gross profits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900,000
Selling and administrative expense . . . . . . . . . . . . . . . . . . . . 420,000
Depreciation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330,000
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000
Earnings before taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240,000
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000

CROSBY CORPORATION
Income Statement
For the Year Ended December 31, 2008
Earnings after taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160,000
Preferred stock dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Earnings available to common stockholders . . . . . . . . . . . . . $ 150,000
Common shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . 120,000
Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.25

Statement of Retained Earnings
For the Year Ended December 31, 2008
Retained earnings, balance, January 1, 2008 . . . . . . . . . . . . . . . . . . . . $500,000
Add: Earnings available to common stockholders, 2008 . . . . . . . . . . 150,000
Deduct: Cash dividends declared and paid in 2008 . . . . . . . . . . . . . 50,000
Retained earnings, balance, December 31, 2008 . . . . . . . . . . . . . . . . . $600,000

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 250,000 $ 440,000
Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 400,000
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 50,000
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . 720,000 890,000
Long-term liabilities:
Bonds payable, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 120,000
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790,000 1,010,000
Comparative Balance Sheets
For 2007 and 2008
Year-End
2007
Year-End
2008
Assets
Current assets:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 70,000 $ 100,000
Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 350,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410,000 430,000
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 30,000
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 830,000 910,000
Investments (long-term securities) . . . . . . . . . . . . . . . . . . . 80,000 70,000
Plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,400,000
Less: Accumulated depreciation . . . . . . . . . . . . . . . . . . . 1,000,000 1,150,000
Net plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,250,000
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,910,000 $2,230,000
Stockholders’ equity:
Preferred stock, $100 per value . . . . . . . . . . . . . . . . . . . . . . 90,000 90,000
Common stock, $1 par value . . . . . . . . . . . . . . . . . . . . . . . . 120,000 120,000
Capital paid in excess of par . . . . . . . . . . . . . . . . . . . . . . . . 410,000 410,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 600,000
Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . 1,120,000 1,220,000
Total liabilities and stockholders’ equity . . . . . . . . . . . . . . . . . . $1,910,000 $2,230,000

28. Describe the general relationship between net income and net cash flows from
operating activities for the firm.
29. Has the buildup in plant and equipment been financed in a satisfactory manner?
Briefly discuss.

STUDENT261@YAHOO.COM

financi4 answers:

Hope this helps:
http://www.cliffsnotes.com/study_guide/Preparing-the-Statement-Indirect-Method.topicArticleId-21248,articleId-21207.html

Donald asks…

Can somebody please help me, I am sick and need help Preparing a statement cash flow for Crosby Corporation.?

Here is what I have:
CROSBY CORPORATION
Income Statement
For the Year Ended December 31, 2008
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,200,000
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,300,000
Gross profits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900,000
Selling and administrative expense . . . . . . . . . . . . . . . . . . . . 420,000
Depreciation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330,000
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000
Earnings before taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240,000
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
6 days ago
Additional Details
CROSBY CORPORATION
Income Statement
For the Year Ended December 31, 2008
Earnings after taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160,000
Preferred stock dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Earnings available to common stockholders . . . . . . . . . . . . . $ 150,000
Common shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . 120,000
Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.25
5 days ago

Statement of Retained Earnings
For the Year Ended December 31, 2008
Retained earnings, balance, January 1, 2008 . . . . . . . . . . . . . . . . . . . . $500,000
Add: Earnings available to common stockholders, 2008 . . . . . . . . . . 150,000
Deduct: Cash dividends declared and paid in 2008 . . . . . . . . . . . . . 50,000
Retained earnings, balance, December 31, 2008 . . . . . . . . . . . . . . . . . $600,000
5 days ago

Comparative Balance Sheets
For 2007 and 2008
Year-End
2007
Year-End
2008
Assets
Current assets:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 70,000 $ 100,000
Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 350,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410,000 430,000
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 30,000
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 830,000 910,000
Investments (long-term securities) . . . . . . . . . . . . . . . . . . . 80,000 70,000
Plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,400,000
Less: Accumulated depreciation . . . . . . . . . . . . . . . . . . . 1,000,000 1,150,000
Net plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,250,000
Total assets . .
5 days ago

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 250,000 $ 440,000
Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 400,000
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 50,000
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . 720,000 890,000
Long-term liabilities:
Bonds payable, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 120,000
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790,000 1,010,000

financi4 answers:

I’ve sent the file to that address you gave me.

Daniel asks…

Accounting homework problem! PLEASE HELP!?

Presented below are three independent situations.

1.Wakarusa Corporation retired $126,900 face value, 14% bonds on June 30, 2012, at 105. The carrying value of the bonds at the redemption date was $115,110. The bonds pay semiannual interest, and the interest payment due on June 30, 2012, has been made and recorded.

2.Pin Oak Inc. retired $141,400 face value, 15% bonds on June 30, 2012, at 96. The carrying value of the bonds at the redemption date was $142,880. The bonds pay semiannual interest, and the interest payment due on June 30, 2012, has been made and recorded.

3.Mishawaka Company has $83,220, 9%, 12-year convertible bonds outstanding. These bonds were sold at face value and pay semiannual interest on June 30 and December 31 of each year. The bonds are convertible into 35 shares of Haas $7 par value common stock for each $1,000 worth of bonds. On December 31, 2012, after the bond interest has been paid, $10,000 face value bonds were converted. The market value of Haas common stock was $42 per share on December 31, 2012.

Instructions
For each independent situation above, prepare the appropriate journal entry for the redemption or conversion of the bonds.

financi4 answers:

I think you should visit ehomeworksolution.com and post ur question on site as they provides email based homework and assignment work help accounting and many more subjects.

Robert asks…

Filing a back dated quit claim in Georgia an Medicaid?

My grandparents quit claimed their house to me in 2005. My grandmother is legally blind, but didn’t have any other illnesses at the time (in 2005). My grandfather was in the early stages of dementia. The decided it would be best to sign the house over to me at the time. I didn’t immediately file the quit claim. Now 6 1/2 years later, I’m told I need to file the quit claim. My grandfather passed away in 2006. My grandmother now has Alzheimer’s. I’ve been my grandmother sole caregiver since my grandfather passed away.

Q1: Can I still go and file the quit claim NOW (in 2012)? Or has it “expired”?

Q2: If my grandmother needs nursing home care (because I can’t continue caring for her at home as her Alzheimer’s progresses), will Medicaid try to take the house to use as payment when we apply (because I’m now filing the quit claim, even though it was signed, notarized and dated in 2005)? As of right now my grandmother gets $940 a month from SSI, and she doesn’t have any other assets (i.e. stocks, bonds, CDs, mutual funds, etc.)

Though I’d ultimately want her to stay at home, I can’t afford to have someone come and care for her. And Medicaid nor Medicare will cover that expense. I just want to know how to proceed when the time comes.

Thanks in advance for all answers.

financi4 answers:

When you say “file”, I assume you mean “recorded” right? In most states a Quitclaim Deed need not be recorded to be valid however it is generally required in order for the deed to be binding on a third party. Do get it recorded, the list of unfortunate things that could happen is endless.

Michael asks…

NEED HELP WITH MICRO-ECONOMICS HOMEWORK!?

I need help with my micro economics homework. I don’t quite understand it. I have three problems that i need to do. They are dealing with Firms, Bonds, Stocks & Price, Bonds, Stocks. Hopefully you can be of some help. Here’s the questions:

Before the 2008 season, the New York Yankees signed second baseman Robinson Cano to a contract that would pay him the following amounts: $3 million for the 2008 season, $6 million for the 2009 season $9 million for the 2010 season, $10 mill for 2011, with an option for $14 mill for 2012 and $15mill for 2013. Assume that Cano plays all six seasons for the Yankees and that he recieves each of his six seasonal salaries as a lump-sum payment at the end of the season he recieves he 2008 salary one year after he signed the contract.
a. Some newspaper reports described Cano as having signed a $57 mill contract with the Yankees. Do you agree that $57 mill was the value of this contract? Breifly Explain
b. What was the percent value of Cano’s contract at the time he signed it (assuming an interest rate of 10 percent)?
c. If you use an interest rate of 5 percent, what was the present value of Cano’s contract?

A winner of the Pennsylvania Lottery was given the choice of recieving $18 million at once of $1,4400,000 per year for 25 years.
a. At an interest of 10 percent what would be the present vallue of the 25 payments?
b. At interest rate of 5 percent what would be the present value of the 25 payments?
c. What interest rate would make the present value of the 25 payments equal to the one payment of $18 million?

thanks for all the help that i hope i will recieve.

financi4 answers:

Hint: Use I = prt or A = P(1 + r)^t to solve that problem.

Good luck!

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Your Questions About Invest In Gold And Silver

James asks…

Is it wise to invest in gold and silver right now, or should I be selling it?

financi4 answers:

If you have it, just hold it. Do not buy any more. Right now gold is down more that 18% from its high in August 2011. Looking at the chart of GLD would tell you that. Why anyone would tell you it is going up is crazy. Things will get so bad in Europe that gold will go back up. So just hold and wait. When you hit a price to just get your money back, get out and stay out. The game being played is currency – not gold.
And don’t get into that either.

When you bought gold (assuming you did), you paid at least a 10% premium (higher than market) just for the privilege. When you sell it, you will pay at least a 10% discount (lower than market) just to get rid of it.
So your gold (assuming you bought some) lost you 20% of your money on the first day you held it in you hand. Be sure to include that 20% loss when you do the math to find the break-even price to get out.

Paul asks…

Should I invest? Gold? Roth IRA?

Hello, I’m currently 18yrs old and will be
leaving for Army BCT in about 20days. I have an extra $5k cash that I would like to invest before I leave. I’d rather keep as little in the bank as possible, because I’ll be applying for financial aid towards college next year. Should I invest the $5k, or keep the cash hidden away? Gold? Silver? Roth IRA? CD? Stock? 401k? Bonds? Land? What’s the overall best way to invest in today’s economic conditions? Thanks

financi4 answers:

Roth IRA…You can never go right with investing for your future… When you enlist you can continue to put money into the roth IRA yearly(5K per year is the limit). You will have a Roth IRA and if you complete 20yrs with the military, you will receive a retirement pension from the government… Start investing for your future now while you are 18yrs old…. If you invest with a 5K starting balance and then continue to invest $400 per month starting Jan 2013 for 46yrs with a 10% annual return will be over $9,556,032.52 plus your military pension and benefits. Start now here is a link that you can play with from time to time. Put the 5K into a roth IRA and when you start receiving your monthly checks always save some within a saving accounts for rainy day funds….

Http://www.daveramsey.com/article/investing-calculator/lifeandmoney_investing/#/entry_form

Good Luck and Take Care

John asks…

I want to start buying gold and silver, how do I know what and where to by it at?

I want to start investing in gold and silver, how do i know if i am buying the real thing, whats the best thing to buy (stamped with?) and where can i buy it safely?

financi4 answers:

Http://www.apmex.com/APMEXTop40/Default.aspx
these are good AND safe…

Ken asks…

is apmex.com a trustworthy website to invest in gold and silver?

they have very cheap things to buy, but im worried of their security . how much do they charge for shipping????any reviews from current or former cutomers at apmex.com??? i will award the best answer 10 points…..thank you so much!!!!!

financi4 answers:

I am not as certain as @JoeyV as to whether this is a trouble-free place to buy Gold and Silver.

The website looks fine and well laid out…prices set at reasonable differences from the spot price whether buying or selling.

However when I check on reviews of purchasers, another story appears

http://apmex.pissedconsumer.com/fees-scam-20120417312816.html

Here was a complaint + a commenter confirmation…

Http://apmex.pissedconsumer.com/do-not-trust-apmex-20090912157019.html

Same website but different complainer…he has 22 pages of comments on his post some confirmation …some not.

Here is another website with 30 user reviews

http://golddealerreviews.com/reviews/gold-dealers/6-apmex

The above reviews are not positive at all.

Yet another site with problems

http://www.ripoffreport.com/investment-brokers/apmex/apmex-www-apmex-com-cheating-ebfb6.htm

I would personally NOT buy gold or silver on-line. I would find a bank/reputable coin dealer/jeweler or some such organization in my city and make the transaction directly with them.

I do not share the total confidence in this company as @Joey does. Perhaps it goes will most of the time but if a problem arises it seems the wheels fall off.

Richard asks…

Should I invest my money in silver/gold?

Im 15 and I don’t have too much cash, 250$ should I buy silver bullion or gold bullion with all my cash and keep it in the bank. Or should I just keep the cash in the bank. Help I am confused

financi4 answers:

Investing in precious metal is one way to hedge against inflation. However you could hardly make money on it. Putting money in the bank is the worst idea, not only that you get next to 0 in interest, in some likihood, you would need to pay service charge on your account. Why not put it in mutual fund.

George asks…

Where’s the best place to buy gold and silver?

I want to start investing in Gold and Silver but I don’t know who to buy from. Everyone charges a fee and has hidden fees and polices. Also, I’m weary of buying from some random online site and giving large sums of money to companies I’ve never heard from before. It’s not like I can rely on brand names when I want to buy a good shoe, like Nike or Vans, I’m completely unfamiler with the metal industry and don’t know who to trust.

Serious and Informed anwsers only please! This is my life savings:

Please, do not respond to this if you have not purchased gold or silver yourself or know someone personally that buys and have said themselves that they personally recommend that company.

I can go online and google “buy gold/silver“, “best place to buy Gold/silver“, “trusted places to buy Gold/Silver“. So please, don’t just answer to anwser. I need people who have personal knowledge of the subject.

Thank you so much!

financi4 answers:

You realize the metals are falling sharply, down 20% in a week, down 45% from the highs? Of course, it may be the perfect time to buy; just sayin’.

I’ve traded with Apmex for years without any problems. Nothing hidden, straight up, shows you a current NYMEX quote and both buy and sell prices, so you know their markup.

Http://www.apmex.com/Category/518/Silver_Bars_1oz_1000oz.aspx

http://www.tulving.com/goldbull.html#silver

If you buy from the mint, you are buying a perfect specimen of numismatic quality. That’s fine if you’re a collector and know of a good appraiser when you’re ready to sell. Otherwise, stick to meltdown value in rounds or bars. It’s okay to pay a little premium to get a pretty coin, but just be aware you may not recover that premium.

Most advisers tell us that during times of financial stress, it is a good idea to put 5% – 25% of our portfolio in precious metals. Putting all you eggs in one basket is indeed very risky.

Http://www.kitco.com/

William asks…

Is it good to invest in gold, by using high “leverage”?

Merry christmas ;),
So, is it of value to invest some money in gold or silver if your broker gives you high “leverage”, 200:1?

And…what do you think about this site: http://www.gcitrading.com ?

Thanks alot!

financi4 answers:

What you are considering doing is not actually called investing. It is called speculating. The high leverage makes it very speculative. 200:1 leverage is courting disaster. 100:1 keverage is only for the very experienced or for someone with more money than he knows what to do with. You can be wiped out in the blink of an eye. On the flip side of the coin it is also possible to make a lot of money expecially by pyramiding. Forget I told you that.

David asks…

Investing in Gold and Silver?

With the economy looking really bad a lot of people are suggesting to invest in Gold and Silver. However, is it too late to invest since the price is so high now? It wasn’t a good idea to buy dot com stocks in 2000 and it wasn’t a good idea to buy homes in 2006.

So are Gold and Silver still good investments or are there other investments to look into (agriculture, other currencies Euro, Swiss Franc)?

financi4 answers:

You are way too late to the party to be suddenly investing in Gold or Silver, or most commodities for that matter. Agricultural commodities may have the longest to run yet, but I wouldn’t do it. You’re right, if Gold is not at its absolute peak now it is certainly getting ready for a fall sometime soon.

The dollar fall may be reversing soon, so I wouldn’t take a gamble on forex speculation either — aside from the fact that nearly all small forex investors end up losing their money. (Although steadily and slowly investing some of your money into international stocks as part of a diversification strategy is still a good idea, and the smartest way to gain foreign currency exposure.)

Instead, it’s a good time to invest in solid blue-chip stocks, municipal bonds, and start looking at REITS (commercial and apartment REITs, not mortgage REITs). If you’re too nervous to do that now, sit on cash and wait a bit longer.

Michael asks…

Investing in Gold and Silver?

I have thought about doing this for awhile now and thought id get some opinions on the subject. Im not planning on trading gold and silver, its more like something to have for when i retire(in 35 years).

financi4 answers:

I wouldn’t consider gold or silver a long term investment but more a short term speculative investment.

Gold and silver do not have a very good record as a long term investment. For example, gold hit a high of $850 an ounce in 1981 and then dropped to about $400 per ounce and remained there for the next 20 years. It has only been since 2000 that gold has been a good investment.

From the high of 1981, gold would need to reach a price of $2,200 an ounce just to keep up with inflation during that time. Even from the low of 1982, gold has only performed about 1% annually better than inflation and there were many other investments including most stocks and bonds that have performed significantly better.

Silver has a similar track record.

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