Tags: Economy

Why Are Gold & Silver Lying To Investors

Posted By : at 03.55 am

It’s OK. We can all relax. All is apparently well with the world.

Europes sovereign debt crises are solved and just a mere bad memory. The US economy is powering ahead. The Middle East has found a lasting peace. The worlds central banks are no longer printing money as fast as their presses will run. Inflation will not take hold.

At least that appears to be the story that Gold and Silver have been telling over the last month. Prices in the yellow metal have fallen from their 2011 peak of $1850 per ounce to around $1650 as I write. Silver has fallen back from its 2011 peak of around $45.80 to around $32. The safe haven properties of precious metal are no longer needed, the danger has passed, the panic is over.

You believe that don’t you? No? Why Not?

Well for one, the 130bn Euro bailout approved this month for Greece, was not a solution. It was yet another very expensive sticking plaster on the whole European Debt crisis. So much monetary and political capital has been expended to get even this far with Greece, it is hard to imagine where the resources needed to address the crisies queuing up in the shape of Portugal, Spain, Italy and others will come from. The German public certainly will not be willing or able to keep funding bailouts for its European neighbours, at some point the music will have to stop. When it does the turmoil seen to date will seem like a tea dance. The only way out will be money printing, and plenty of it. The devaluation of the Euro may cause flight to the Dollar and hurt precious metal in the short term, but beyond such events prices will rally.

Secondly, the Middle East continues to be an ever present source of geopolitical uncertainty, and support for precious metals. Iranian nuclear ambitions may yet draw the region into further conflict, and on-going civil war in Syria may boil over into a wider struggle.

The US economy does appear to have recently turned a corner, this has had the effect of boosting the Dollar, and as a result Gold and Silver prices, holding true to their inverse dollar correlation, have fallen. However what most commentators fail to grasp is the huge scale of the stimulus that has had to be applied to generate these signs of life in the worlds biggest economy. Trillions have been created and injected into the system, and that will in time work its way into the wider economy. Inflation seems inevitable.

But still the biggest driver of Gold and Silver prices that does not seem to have been realised by the mainstream media yet, the Elephant in the room, is US debt. According to USDebtClock.org the US national debt is currently running at $15.5 Trillion dollars and rising. This is more debt than the US can meaningfully pay down, a default at some point or further wholesale depreciation of the US dollar would seem to be the only way for America to deal with its debts. When this comes to pass, the effect on Gold and Silver will be spectacular.

So why have Gold and Silver tried to tell such an unconvincing story since 2012? The rise of any market never happens in straight line, precious metals are actually a small market compared to currencies, equities, and bonds, at around 9 trillion dollars for Gold. Markets are seldom liars, it is just the length of their outlook that changes. The effects of speculation entering and exiting the market in reaction to short term drivers will inevitably cause volatility.

So the mantra for Gold and Silver investors in 2012 might be “Keep the big picture in mind and trust your instinct”.

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How To Get Out Of Credit Card Debt The Right Way

Posted By : at 09.58 am

By Keith Pollow

According to a 2011 survey, the average North American has seven credit cards and carries over $8,000 in balances on those cards. The balance amount is down from $10,000 in 2008, before the recession. No matter how much credit card debt you have, it can feel monumental when you’re struggling to make your payments on time.

There are some options in dealing with debt before you should look at a relief program. If you cannot pay your bills using these three steps, then it is time to seek professional help in dealing with your credit card balances.

Budgets
Every family should have a budget. Look at every dollar made, and spent. Itemize it so that you can see exactly where your money is going. Are there any expenses you can cut back on? Are you spending money on fancy coffee or on cable packages you don’t use? Find every miscellaneous expense possible, and cut it out. Determine how much money you can save to apply for your credit card payments.

Power Payments
A power payment is a payment above the minimum required payment. For many people, power payments can be achieved through budgetting. Take every extra dollar saved by cutting back on expenses, and applying it to your credit cards. Focus on one card, typically the one with the highest interest rate. Make your regular payment, plus the additional payment on the card. You can start paying down the balance quickly, freeing up money to use for other cards.

Slow and Steady
If you are not able to attack the largest interest rates, go for the smallest balances. Paying off a credit card quickly can help reduce your monthly payment obligations, and give you momentum heading towards the next card. Once a card is paid off, take the power payment and the minimum payment for the paid off card, and apply it to the next card. Repeating this process can help pay debt faster, clearing credit card debt.

Debt Relief Services
You’ve examined your budget, tried power payments or slow and steady payments. You still can’t get out of the woods on your credit card debt. It’s time to start finding a debt relief company.

With a quality debt relief agency, you can combine your payments into one lump sum, reduce your interest rates, and get out of debt quickly. Some agencies specialize in settlements, helping you to make a one-time payment to pay off your bill at a much lower rate.

Depending on your financial situation, and the amount of your debt, a debt relief specialist will work to save you the most money possible with ensuring your financial freedom. Every person is different, as is every credit card bill. Understanding the industry is paramount for any debt relief service. A company with a long history of satisfied customers is a good sign that you’re working with a good firm.

No one wants to struggle with credit card debt. Debt relief companies will help you solve your problem.

Credit Counselling Services of Atlantic Canada Inc. – 20 Alma Street, Saint John, NB E2L 5G6, Canada (888) 753-2227 ‎- Canada’s leading credit counselling firm can help you resolve debt issues. Serving the Atlantic regions of Canada we specialize in Debt consolidation Newfoundland and Debt Management Prince Edward Island.

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What Financial Advisors Do For Their Clients

Posted By : at 10.50 pm

By Thomas Altrock

A financial advisor or financial planner is an individual who provides guidance and advice on financial matters for individuals. People who work as financial advisors can fall into many different categories and provide many services to their clients. If you need help handling your money, figuring out how to invest or planning for retirement, a financial planner could provide you with help.

Creating a Financial Plan

One of the most important services that a financial advisor provides is helping you come up with a comprehensive financial plan. For this process, the advisor will sit down with you and review your current financial situation. The advisor will ask a series of questions designed to find out exactly what you want to accomplish in life with your money. The planner will help you create a budget and a savings and investment plan. In many cases, people have no idea how to get started saving for retirement or how much they need to set aside to reach their goals. A financial planner will use the information that he obtains to make recommendations about how much you should be setting aside.

Giving Investment Advice

Many financial advisors also provide assistance in the area of investing. Besides simply telling a client how much to set aside on a regular basis for retirement, he will tell clients how to invest their money. This may come in the form of coming up with an ideal asset allocation or it come in more specific terms. For example, some financial advisors will give clients an idea of what percentage of their portfolios should be in stocks, what percent in bonds and what percent in other asset classes. Other advisors will specifically tell their clients to buy stock in XYZ corporation. Before choosing a financial planner, it is important to find out what type of advice they provide. One type of advice may be more appropriate than the other, depending on your situation.

Specialization

Not all financial planners work in the same area or provide the same services. Some choose to focus on retail clients and work with individuals. Others specialize in working with institutional clients. While the basic skills that they use are the same, they have to understand different financial topics in order to specialize in a particular area.

Qualifications

In order to become a financial advisor, an individual must have certain qualifications. In most cases, they have at least a bachelor’s degree in finance or a related field. They also must pass an exam known as the Series 7. This exam is administered by the Financial Industry Regulatory Authority or FINRA. Without passing this exam, they cannot provide financial advice legally. In order to take this exam, the advisor has to be sponsored by an institution that is already a member of FINRA.

Taking Advice

If you are looking for help with your financial situation, working with a financial planner can provide some major benefits. However, you should not blindly take the advice of any planner without verifying the information for yourself. Find out the track record of the financial advisor to make sure that he knows what he’s talking about and that you can trust him. By using a tool offered by FINRA called “Broker Check” you can find out a lot of valuable information about any financial advisor. This information could be exactly what you need to make an educated decision.

Put your retirement in good hands. IPC Securities 1515 Rebecca Street, Oakville, ON L6L 5G8 (905) 847-7777 (905) 469-0513 (Fax) offers expert financial advisor Oakville services to ensure a bright financial future for you and your family.

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