Apple, <b>Gold</b>, LinkedIn Charts: When A Trade Turns Into An <b>Investment</b> | How to invest in gold |
- Apple, <b>Gold</b>, LinkedIn Charts: When A Trade Turns Into An <b>Investment</b>
- Silver: the golden <b>investment</b>? - Business Reporter
- Best Strategy to <b>Invest in Gold</b> as Prices Continue to Rise - Insider <b>...</b>
| Apple, <b>Gold</b>, LinkedIn Charts: When A Trade Turns Into An <b>Investment</b> Posted: 01 Jul 2014 08:56 AM PDT It almost always ends poorly. Every day active investors scan the market for setups they like. Whether it's stocks, bonds, ETFs, futures, commodities, or currencies, there are a multitude of sectors and asset classes to scan and rank. And as we maintain, build, and invest in our running list of candidates, we constantly think about risk-reward and time frames. And it is within this context that we make decisions. The Trade If you are an "active" investor (a nice name for a trader of varying time frames), odds are that you inevitably approach some or all setups with a shorter-term time frame. Could be a day trade, to a matter of days, to a matter of weeks, but in any case, this type of setup is for a trader. If done properly, the trade is planned out: price(s) to get in, time frame locked, and price(s) to get out (stops). So What Can Go Wrong? The security moves against you, your stop is hit, and you take a loss and move on. Yup, this happens to everyone. Not a big deal because the systematic approach keeps you (and your capital) alive for other setups. This is harmless... as is being stopped out on a winner as it starts to lose momentum. Traders lose their mental edge when they decide that they need to win at all costs. And this leads them to adjust their time frames and or price disciplines. A couple of examples:
Simply put, this is all about developing a process, building a plan, and sticking to it. Taking care of our capital takes care of our psychology (and keeps us focused on appropriate time frames). I'll leave you with a few charts that highlight the danger in letting your discipline go:
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| Silver: the golden <b>investment</b>? - Business Reporter Posted: 26 Jun 2014 08:30 AM PDT As the recovery takes hold, the value of precious metals has peaked – except one. Joanne Frearson reports on how silver could be the next big thing
Silver has not been on the top of fund managers lists when investing in precious metals. But this unloved metal could be the one to watch out for. The volatile nature of silver could make investing in the companies that extract it remarkably profitable. One fund manager who has bucked the trend to slant his portfolio towards silver is Ian Williams, CEO at Charteris Treasury Portfolio Managers. The WAY Charteris Gold & Precious Metals fund is the only portfolio in the UK which has the majority of its investments in silver. Around 70 per cent of the portfolio is weighted towards silver, while 30 per cent is in gold.
"If you want to buy things in favour then you will buy them at the top of the market – if you want to buy things that are cheap, it involves buying things at the bottom." Williams believes silver is at a low point in a bull market. "Every 10 years or so you get a major low in the price of silver," he says – and these have occurred in 1972, 1982, 1993, 2002 and 2013. Williams explains that there is usually a bounce from this low point, pointing out that the average bounce is 700 per cent for silver. "This does not come very often, and when it does you should take advantage." Although Williams also thinks gold will go up in value, he believes it is better to be positioned in silver as it is more volatile and will go up much more than gold. Williams says: "If you are going to have a two-to-three year period where precious metals are starting to go up, then you might as well be in the one that goes up the most. Silver is $20 an ounce and gold is $1,300 an ounce. It is a lot easier for silver to go from $20 to $40 than it is for gold to go from $1250 to $2500. "Although silver will be more volatile as well on the way down, if you think you are in an up part of the cycle you would want to be in silver." Williams's prediction is that the price of silver will go up sevenfold, to about $140 an ounce, while gold prices will go up only triple, to perhaps $3,500 an ounce. Another sign that precious metals are in a bull market is because the Gold Forward Offered Rate (GOFO) has turned negative, meaning there is a shortage of supply and prices will rise. "Every so often the gold market goes negative," Williams explains. "The only way it can is if some big buyers come in and are prepared to pay a premium. Every time this has happened, it has been a signal for a huge uplift in gold price. It is a signal that there is massive pent-up demand for the immediate delivery of gold. "Why people want it, no one knows exactly. Maybe Indian jewellers are prepared to pay a premium because the gold in three months' time is no use to them. They have customers who want jewellery and they have not got any gold to make the rings. They do not want to turn the customers away as they do not want them to go to another shop and buy the rings. They are desperate to get their hands on gold." Out of the different asset classes you can invest in regarding precious metals, he believes shares offer better value than investing directly in the metal. Companies in his top 10 positions include Fortuna Silver, Tahoe Resources, Fresnillo and Silver Wheaton. "I would recommend gold shares over gold metal and silver shares over gold shares," Williams says. "Gold shares will go up tenfold, and maybe some of the silver shares will go up twentyfold. That is a magnitude of how bombed out it is. It is the only sector of the equity market which you can buy at 2008 post-crash levels. Every other sector has gone back up and is hitting new highs. We think it is absolutely unique." Williams also believes silver producers have the edge over gold because there is more of the metal in the Earth's crust. They have also been hitting their production targets, whereas some targets at gold companies have been falling short of expectations. Now could be the time to buy silver. If there is a bull market in precious metals, the share price of silver firms could soar, and the metal that's out of favour could soon be loved again. |
| Best Strategy to <b>Invest in Gold</b> as Prices Continue to Rise - Insider <b>...</b> Posted: 26 Jun 2014 11:24 AM PDT Gold prices continue to rise on reports that the U.S economy contracted in the first quarter more than analysts had anticipated. World Gold Council's Managing Director of Investment Strategy, Marcus Grubb, in an interview on Fox Business stated that the rally in prices is partly driven by the fact that many analysts believe the federal funds rate is not going to go higher than earlier thought and that the bonds yield will also continue to recover.
The whole demand and supply for gold has also improved over the past few months further propelling Gold prices. Mr. Grubb says " since the start of the year, the whole supply and demand picture for gold has improved significantly, from how bad it was last year." Increased Demand for gold in India and China is also pushing the prices even higher. Mr. Grubb says that India and China combined command approximately 50% of the physical demand for Gold, which means that these two countries have a massive impact on the prices. The global gold market stands at $250 billion a year according to Mr. Grubb. New York also has a significant influence on the price of gold. Grubb believes that gold prices are set to continue increasing in the second half of the year, making it a worthy investment depending on the strategy. Considering there are many ways of playing gold; either by buying it physically, buying stocks of gold miners or buying ETF's. Mr. Grubb advice for a retail investor to play it safe when trading, by engaging in a mixed strategy; In this case Mr. Grubb said:
Mr. Grubb also advices on buying a physically backed ETF or mining shares. Increase of gold mining stocks value in the past was down to the fact that there was huge borrowing when gold was at a high of $1800 an ounce. Problems kicked in when the value dropped to $1300 an ounce. Disclosure: none |
Williams says: "Out of all the potential asset classes available for investors to buy, silver is the one that has the most profit potential of any asset class in the world. Silver is very bombed out at the moment. The silver asset class is out of favour.
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