Gold and silver are volatile and you would be risking your money if
you were investing in them and thus - do not invest. Unless, you are
even a slight student of the GFC. With even a slight knowledge of the
causes of the financial crisis, you could turn the volume down on those
assertions that the metals are volatile to a level near zero. These
precious metals are safe investments, and here is why.
We are going to identify why the two precious metals are safe
investments, although before moving forward, we must know this primary
point - gold and silver are hedges against the GFC and their gains are
reflections of global growth itself.
In a word, we are not basing gold and silver gains on market
sentiment or hope-based forecasts of growth. We know that gold and
silver gains are intimately rooted into developments of the global
financial system and the continuation of the GFC.
We are not basing gold and silver gains on unfounded investor psychology or a hot tip and are not looking for a quick profit.
Simply know this, as the GFC worsens, gold and silver improve. Also, as the GFC worsens, gold and silver survive.
Know that it is not about a quick profit or a sudden trend, it is about the global financial crisis itself.
Gold and silver are safe investments because as the GFC worsens and
money is being lost all over, a significant percentage of that money is
simply being transferred to gold and silver.
We are looking into one main cause of the financial crisis and
showing how gold and silver grow in direct relation to this cause.
The cause is -INFLATION
Wednesday, June 29, 2011
Thursday, June 9, 2011
ASB Haram? Bertindaklah segera..!!!
Berikut adalah surat jawapan dari pihak Jabatan MUFTI Negeri Selangor tentang permasaalahan ASB/ASN yang diajukan oleh seorang sahabat. Bertindak segera wahai sahabat-sahabat ku, simpanlah dinar dan dirham (emas/perak) bersesuaian dengan hadith Rasulullah S.A.W yang bermaksud :
Abu
Bakr ibn Abi Maryam reported that he heard the Messenger of Allah, [may
Allah bless him and grant him peace] say: "A time is certainly coming
over mankind in which there will be nothing [left] which will be of use,
save a dinar and a dirham." - Musnad Imam Ahmad ibn Hanbal.
Monday, June 6, 2011
Best investments for 2011
Since the beginning of the year, a lot of investors have been asking
themselves what are the best investments for 2011? It is such a delicate
question, as 2010 was a very volatile year. A lot of investors who
starting to pour their money into areas they thought would be strong,
got hurt.
Before asking yourself what the Best Investments for 2011, you must sit down with yourself and work out what goals and desires you have. You must also do a bit or research to ensure you put the odds in your favour. Not doing do can have dire consequences.
If you cannot spend time to do some research, it is better to hire or outsource someone to do this for you. This will cost you some money, but it will save you time, and will only increase the chances of seeing handsome profits down the track.
So what are the best investments for 2011?
1) Invest in Gold & Silver
No matter what you think, gold and silver have been very popular investments. Although whenever the economy suffers, these commodities do extremely well. They always have. Normally they are extremely volatile in price, and it is not advisable to buy futures or paper contracts. However you can watch the spot price of these commodities online and buy physical gold and silver bullion. They have real value and you do not have to deal with leverage like you do on the futures exchange. A lot of investors have realised this is one of the best investments for 2011 and that is why we have seen prices skyrocket.
2) Invest in Mutual Funds
These are some of the best investments for 2011. With many people now scared about the stock market and trying to make money themselves. Mutual funds that have a good track record in the past are a good option. The best part about these companies is that you get to diversify your money in many investment vehicles. That way you are not putting all your eggs in one basket. It is a low risk, high reward way to invest, without doing the hard work yourself.
3) Invest in commercial and residential real estate
With the recent real estate collapse, it is no surprise that real estate investments will be one of the best investments for 2011. If you are a good negotiator you can get even better deals. This does require a little time and patience but the rewards are very good. With prices so low, and the market recovering it is now very easy to spot a bargain. Look to do a bit of research on evolving towns or those towns under massive development, close to schools and shopping centers. These are the are guaranteed to do well in the years to come, and are likely to be the best investments for 2011 and 2012.
Before asking yourself what the Best Investments for 2011, you must sit down with yourself and work out what goals and desires you have. You must also do a bit or research to ensure you put the odds in your favour. Not doing do can have dire consequences.
If you cannot spend time to do some research, it is better to hire or outsource someone to do this for you. This will cost you some money, but it will save you time, and will only increase the chances of seeing handsome profits down the track.
So what are the best investments for 2011?
1) Invest in Gold & Silver
No matter what you think, gold and silver have been very popular investments. Although whenever the economy suffers, these commodities do extremely well. They always have. Normally they are extremely volatile in price, and it is not advisable to buy futures or paper contracts. However you can watch the spot price of these commodities online and buy physical gold and silver bullion. They have real value and you do not have to deal with leverage like you do on the futures exchange. A lot of investors have realised this is one of the best investments for 2011 and that is why we have seen prices skyrocket.
2) Invest in Mutual Funds
These are some of the best investments for 2011. With many people now scared about the stock market and trying to make money themselves. Mutual funds that have a good track record in the past are a good option. The best part about these companies is that you get to diversify your money in many investment vehicles. That way you are not putting all your eggs in one basket. It is a low risk, high reward way to invest, without doing the hard work yourself.
3) Invest in commercial and residential real estate
With the recent real estate collapse, it is no surprise that real estate investments will be one of the best investments for 2011. If you are a good negotiator you can get even better deals. This does require a little time and patience but the rewards are very good. With prices so low, and the market recovering it is now very easy to spot a bargain. Look to do a bit of research on evolving towns or those towns under massive development, close to schools and shopping centers. These are the are guaranteed to do well in the years to come, and are likely to be the best investments for 2011 and 2012.
Wednesday, May 18, 2011
What happen to silver ?
Silver has followed a repetitive spike, crash, and consolidate pattern
during this silver bull market. The bulk of each crash lasted
approximately two months, so if this crash follows the same pattern it
should bottom sometime in June. Then silver should stage a recovery
rally. The recovery rally has tended to be followed by a consolidation
period, where silver just grinds sideways. If the crash is the “scare
you out” phase, then the consolidation after the recovery rally is the
“wear you out” phase. The goal of both of these phases is to recreate
the wall of worry necessary to drive the next major rally.
Markets typically need time to repair the damage after a crash and
that is essentially what the recovery rally and consolidation phases
accomplish. It usually takes a period of time and multiple attempts for
a market to overcome the resistance created by a sharp crash.
Therefore silver investors should adjust their expectations and prepare
for a sideways grind after the current crash has run its course.
Expecting silver to race back up to 50 and make new highs right away is
not out of the realm of possibility, but it isn’t probable based on how
markets normally behave.
Based on past precedent the new trading range for silver is likely to
be from the mid-20s to the recent high right below 50. There’s some
support on the chart between 26-30 and this zone also resides underneath
the 200-day moving average, so that area would likely prove tough to
penetrate to the downside.
It should be interesting to see how long it takes silver to repair
the damage done before it can attempt to stage a real breakout past 50.
One important thing to note about bull markets is they tend to overcome
corrections quicker as the bull market becomes more mature and
accelerates to the upside. This next chart of the tech bull market
shows how the market consolidated for years at a time early in the bull
market, but later in the bull market it only took a matter of months to
complete each consolidation period.
next.big.trade.com
Sunday, May 8, 2011
Silver dip will be brief
Silver dipped below $36/oz. this morning, down about 8% from
yesterday, and down about 27% from the high last week of about $49.50/ per
troy ounce.
Some people are saying "this is like 1980 all over again" and that silver will now crash. Nothing could be further than the truth.
The truth is
1. The amount of money they have printed up since 1980 is ten times higher, so if you adjust for inflation, the peak price from 1980 should be more like $500/oz. in today's dollars.
2. In 1980, interest rates, the amount paid on bonds, rose to over 20% per year. Today, interest rates are close to zero. Interest rates make holding bonds more attractive.
3.The US government money printing driven inflation is just beginning, it's not remotely close to ending. The US annual budget is about $3.8 trillion, and the government collects about $2.2 trillion, leaving a gap of about $1.6 trillion that is met by money printing, which makes the value of the dollar go down.
$1.6 trillion of new money can also expressed as $1600 billion, or $1,600,000 million.
For comparison's sake, new investment demand for physical silver last year was only 250 million ounces, at, let's say an average of $35/oz., was just under $9 billion, or only $9000 million.
Silver is not in a bubble in terms of prices.
The bubble in stocks in 1929 was caused by debt financing.
The bubble in housing in 2007 was caused by debt financing.
You cannot borrow money to buy silver. Thus, silver is NOT in a bubble.
Exceptions: Yes, you can borrow money to speculate in silver, but no silver is ever purchased at the time that you purchase futures, or options on silver. And the futures market is known for having an overall open interest of over 800 million oz. of silver, while less than 40 million oz. of silver are available for delivery!
Yes, also certain private firms, who have horrible reputations in my opinion, will let you borrow money "to buy silver", but you must keep the silver with them, and it's doubtful that they ever actually purchase the real silver either.
In silver's case, the availability of debt, and use of leverage is used to prevent you, distract you, dissuade you, from actually buying silver. This makes silver an "anti-bubble"; the opposite of a bubble.
When debt is used to actually buy real silver, the extra buying would artificially push the price up.
When banks actually owe silver that they neglected to actually purchase, their lack of buying artificially pushes the price down.
Again, silver is the opposite of a bubble.
People have not yet learned that silver is payment in full. Silver is not a promise to be paid. Owning a promise to be paid in silver is about as bad as owning paper dollars -- the value of both of which has (primarily and fundamentally) only one way to go, which is down.
Government is in a bubble. US paper money is in a bubble. The US bond market remains in a bubble.
Somebody just posted to my facebook, "everybody is selling out", "Soros is selling his gold", etc.
No, the opposite is true. Nobody was ever in (cause they don't have physical material)
The real fundamentals of silver show that less than 6% of 1% of paper money in the USA even bought any real silver last year. That means that silver buying would have to be 20 times more, just to get to about 1% of people buying silver!
Silver the opposite of a bubble. This dip will be brief. Silver at $200/oz. is still a "price dip" compared to where the silver price is headed.
I strongly advise you to take possession of real gold and silver, at anywhere near today's prices, while you still can. The fundamentals indicate rising prices for decades to come, and a major price spike can happen at any time.
Some people are saying "this is like 1980 all over again" and that silver will now crash. Nothing could be further than the truth.
The truth is
1. The amount of money they have printed up since 1980 is ten times higher, so if you adjust for inflation, the peak price from 1980 should be more like $500/oz. in today's dollars.
2. In 1980, interest rates, the amount paid on bonds, rose to over 20% per year. Today, interest rates are close to zero. Interest rates make holding bonds more attractive.
3.The US government money printing driven inflation is just beginning, it's not remotely close to ending. The US annual budget is about $3.8 trillion, and the government collects about $2.2 trillion, leaving a gap of about $1.6 trillion that is met by money printing, which makes the value of the dollar go down.
$1.6 trillion of new money can also expressed as $1600 billion, or $1,600,000 million.
For comparison's sake, new investment demand for physical silver last year was only 250 million ounces, at, let's say an average of $35/oz., was just under $9 billion, or only $9000 million.
Silver is not in a bubble in terms of prices.
The bubble in stocks in 1929 was caused by debt financing.
The bubble in housing in 2007 was caused by debt financing.
You cannot borrow money to buy silver. Thus, silver is NOT in a bubble.
Exceptions: Yes, you can borrow money to speculate in silver, but no silver is ever purchased at the time that you purchase futures, or options on silver. And the futures market is known for having an overall open interest of over 800 million oz. of silver, while less than 40 million oz. of silver are available for delivery!
Yes, also certain private firms, who have horrible reputations in my opinion, will let you borrow money "to buy silver", but you must keep the silver with them, and it's doubtful that they ever actually purchase the real silver either.
In silver's case, the availability of debt, and use of leverage is used to prevent you, distract you, dissuade you, from actually buying silver. This makes silver an "anti-bubble"; the opposite of a bubble.
When debt is used to actually buy real silver, the extra buying would artificially push the price up.
When banks actually owe silver that they neglected to actually purchase, their lack of buying artificially pushes the price down.
Again, silver is the opposite of a bubble.
People have not yet learned that silver is payment in full. Silver is not a promise to be paid. Owning a promise to be paid in silver is about as bad as owning paper dollars -- the value of both of which has (primarily and fundamentally) only one way to go, which is down.
Government is in a bubble. US paper money is in a bubble. The US bond market remains in a bubble.
Somebody just posted to my facebook, "everybody is selling out", "Soros is selling his gold", etc.
No, the opposite is true. Nobody was ever in (cause they don't have physical material)
The real fundamentals of silver show that less than 6% of 1% of paper money in the USA even bought any real silver last year. That means that silver buying would have to be 20 times more, just to get to about 1% of people buying silver!
Silver the opposite of a bubble. This dip will be brief. Silver at $200/oz. is still a "price dip" compared to where the silver price is headed.
I strongly advise you to take possession of real gold and silver, at anywhere near today's prices, while you still can. The fundamentals indicate rising prices for decades to come, and a major price spike can happen at any time.
Jason Hommel, Grass Valley, CA
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