investing

Why is Gold Such a Good Investment?

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From the earliest days of modern civilization, gold has always been a great commodity for trading and storing. Gold prices have continued to rise even through economic downturns, and nowadays it’s being touted as a great way to earn money with relatively no experience necessary on the part of the seller or buyer.

Because there has always been a demand in this precious metal, most investors will purchase gold without thinking twice. While buying blind will offer some form of profit margin, the best time to invest would be during slow economic growth. Some signs would be falling energy prices and currency exchanges. Gold buyers tend to have greater profit margins during these times because distribution costs also go down.

Public speculation of gold has also kept prices relatively high. While there’s always a chance that this bubble will burst, it won’t be as drastic as other financial crises as gold has become so entrenched in the world market that there will always be buyers who will push it back up.

Economic scares should therefore be taken lightly when it comes to buying gold. There will always be some form of discouragement when it comes to buying precious metals, but when it comes to gold, prices will always go two ways: remain stable or go up.

 

Canadian Dollar Gains On Market Speculation

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The Canadian dollar rose in value after sinking to its lowest levels in over two weeks, largely due to rumors that banks will announce new fiscal measures in order to boost economic activity in the country. The dollar had previously fallen alongside the different debt crises in the European Union. The new speculation jump-started Canada’s currency to its highest one-day gain this month.
Some speculators are now buying more Canadian dollars in the hope of short selling them when the time comes. Current 10-year bonds are now fixed at yield of 1.705 percent, just a little below the 1.765 percent rate of previous bond offerings.
In contrast to the Canadian currency, the stock markets were largely unaffected. Oil prices also remained stable, hovering a little above $89 in US trading. This has caused some concern to speculators as stocks and oil usually moved with currency changes. Still, traders are cautiously watching the market for sudden changes.
In international markets, many investors are now leaving behind the Euro and Sterling currencies and moving to different American and Commonwealth dollar currencies. Like the Canadian dollar, these greenbacks are now rising over the Euro zone’s concerns of stagnant growth due to the financial concerns there.

 

Equity in your Home: Is it Wise to use it?

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There has been a change in the financial situation in our generation with respect to our earlier generation. About 30 years ago, our parents tried, and were mostly successful, in paying off their mortgages by the time they turned 40. After attaining this financial freedom, they started enjoying their lives by spending money in areas of their choice and interest. It was possible for them to be debt free so early in their life because at that time, the average mortgage value of a house was about two to three times of a person’s annual income.

 

The strategy adopted by our parents may not be suitable for us because of the simple reason that the average mortgage value of a house has now become approximately six to nine times of a person’s annual earning. So it is extremely difficult, if not impossible, for an average Canadian to become debt free around their middle age. Waiting to enjoy life till all the loans are paid off may not be a wise decision anymore because you may be able to reach that stage only when you are too old to enjoy things.

 

A solution to this issue can be to borrow against your existing equityafter you have been able to pay off most of your debts. By doing so, you will be able to invest and spend money in areas of your liking with a comparatively low debt against your name. However, borrowing extra money to enjoy life in the prime should be done only in case it does not put you in additional financial stress. In some situations, it is wise to sacrifice in the house size, thus reducing the mortgage amount, and using the spare money in something you like.

 

Investors Banking On Obesity Trends

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As more and more people enter obesity, investors are looking to act on businesses that might be able to capitalize on this particular demographic in the future. Speculators are looking at commercial and health care concerns that may be able to address the concerns of obese people. In particular, the pharmaceuticals industry, food industry, nutrition industry and sports industry stand to benefit from this market.

Those in pharmaceuticals will be able to address the medical concerns of larger people, not only in terms of medicines, but also with equipment like larger-sized beds and mobility devices. On the other hand, weight loss and nutrition businesses will want to advertise the benefits of their health regimen. So too with sports companies who will most likely sell both clothing and equipment to entice buyers to shed off extra pounds from their bodies. Of course, the biggest winner will most likely be the food industry where almost $700 billion in revenues were generated in the US alone.

While the topic may seem strange, investors have been looking at different trends over the past decades to see what emerging concerns may need a sizeable investment in the future. As of this decade, obesity has been slowly climbing the ranks of trending topics and will soon be a by-word in financial markets. Because of its health implications, investors are looking at a long-term scenario where the aforementioned industries will continue to function for 20 years or longer.