Why You Should Buy Gold

This isn’t 1817, so some people are still surprised about why some investors spend a lot of money buying gold. Gold, and other precious metals like silver, has been historically considered wealth generators. Even as the economy has moved forward to depend on currency, there is a unique quality to gold that makes the metal worth owning.

Buying gold is not actually just for wealthy investors either. In fact, wealthy investors recommend that all investors diversify their portfolios with gold. Read ahead to find out why you may need to own some gold yourself:

How Gold is Valued Against Currency

The price of gold is valued in an inversely proportional manner to major world currencies like the dollar. This is an extraordinary relationship that moves the market. Historically speaking, gold prices are highly volatile, so it’s not a sound investment. However, the nature of the value of gold indicates that when the dollar value goes up, the price of gold comes down. Likewise, when the value of the dollar plummets, the price of gold skyrockets.

Now let’s consider the situations that affect the value of currency. When the market is doing good, the dollar is strong. There may be minute fluctuations here are there, but that’s to be expected. Then again, there are certain situations that make the value of the dollar come pummeling down to the earth. Financial crises, like recessions and depressions, cause the value of currency to nearly disappear. So what happens when you own your assets mainly in cash? When the market crashes, the value of these assets crash along with it. This is what happened to many investors during the Great Recession in 2008. Decades ago, a worse situation occurred during the Great Depression.

But what happens to gold during financial crises? It goes way up. The value of gold saw historic highs in 2008. Even smaller scales of financial uncertainty, like the recent Brexit, devalues cash assets, but strengthens the value of physical gold assets. Simply put, gold acts as a hedge against financial uncertainty. When you have gold in your investment portfolio, your wealth will be protected, even if the market crashes and all your cash assets are wiped out. Gold, therefore, is one of the most reliable forms of assets to own. This is why you might see headlines about prices of gold going up when there are financial or political uncertainties that could potentially affect the market.

Should Regular or Casual Investors Own Gold?

Gold is for everyone who has cash assets that could be affected by financial uncertainty. When the recession hit in 2008, it affected everyone, not just the high-rolling investors. Therefore, it’s recommended that all investors consider buying physical gold.

For most people, financial uncertainly mostly affect retirement savings. When you diversify your retirement investment portfolio, or a self-directed IRA, it’s not wise to have all assets in cash. You benefit from the returns of these investments decades from now on. No one can say what could happen during this period. There could be another recession, or the market could end up performing really well like it’s the nineties all over again. The point is, nothing is certain. That’s why it’s important to diversify an investment portfolio with physical gold.

Some Misconceptions to Be Aware Of

There are loads of misconceptions to be wary of when buying gold. First of all, the recession-proof value of gold only applies to physical gold, like bars, national minted coins, and bullion. Not gold stocks. If you own stocks in a gold mining company, or stock-traded gold ETFs, then these investments are still cash investments. If the dollar takes a hit, the value of these assets will take a hit as well. To benefit from gold’s value as a hedge against uncertainty, you need to own physical gold.

It’s important to note here that just any physical gold wouldn’t do. If you own gold jewelry, the gold in these items will have to be melted down and weighed to have actual value. The cash value of the jewelry doesn’t matter. Likewise, the value of collectible gold coins and hedge gold are two different things. If you spent a million dollars on a rare collectible gold coin, that wealth won’t immediately translate into gold value. The gold in the coin will only be worth its weight according to the spot price at the time.

If you are going to buy gold, you will have to buy in bars or minted coins. Bars are convenient for owning a lot of gold at a time. Minted coins have the advantage of being tradable too.

How Regular Savers and Investors Can Buy Gold

These days you can buy gold easily online. However, that doesn’t mean you should. Regular investors can buy gold from dealers. Unfortunately, there is not national agency that regulates gold dealers. Therefore, you will have to find dealers based on reputation and recommendations. As a rule of thumb, only buy gold from dealers that are banks, reputed financial institutions, or registered businesses.

U.S. Mint maintains a list of reputed gold dealers. Don’t mistake these dealers to be “accredited” and entirely reliable. However, you can refer to the list to find a dealer that you can trust for the most part.

When you buy gold from a third party, you will have to pay a fee that is slightly above gold spot price. Before buying, it’s highly recommended to check the spot prices for gold for the week. The price the dealer offers should only be about 2 to 5 percent higher than the spot price. Do not pay exorbitant amounts way above the spot price.

When buying, consider storing gold as well. Good dealers offer options to store gold when you purchase from them. Of course, gold has to be stored in a highly secure location. You can pay for a vault in a bank if you don’t want to store the gold with a dealer.

There’s another option to store gold: IRAs. You can add certain approved forms of gold to a self-directed IRA as a form of investment. This is highly recommended if you want to hedge your retirement savings. You will need to hold a regular IRA for some time before you can convert it to a self-directed one. You will also need to appoint a licensed trustee. But once you do, you won’t have to worry about another recession hurting your retirement savings.

Why You Need To Try Warrior Trading

As you start out in the world of day trading, you need to make sure you know what you are doing. More than 90% of traders lose money out on the market. That is due to the rookie mistake of taking a bunch of money and trying to make a killing as a day trader with no understanding of trading strategies and risk management.

So how do you make the leap from novice day trader to profitable day trader? Education. You need to find the right set of teachers and infrastructure to learn optimal day trading techniques and how to implement them on a daily basis.

That is where Warrior Trading comes in. This Warrior Trading review will provide a comprehensive understanding of what the day trading education site does and how it prepares day traders to handle the ups and downs of the market.

And ups and downs is the key phrase there. Day traders make their money on volatility. Following stocks as they are about to spike and then riding that momentum straight to profits. The key is always picking the right stocks, the ones that are about to move and buying shares at the exact right time. Finding those stocks is a matter of being able to handle stock scanning software and read advanced charts, while also identifying the proper technical indicators that will tell you what to do.

Warrior Trading can teach you that.

Then you need to execute the trade. Navigating a brokerage account and protecting yourself with stop-losses on each trade is important. Risk management is the lifeblood of a successful penny stock day trader. How can you make money if you can’t stop chasing bad trades down the y-axis into the red? Making sure that your trades are full of risk management strategies is a simple way to make sure that you are hitting your profit and loss targets each day, each week, each month.

One of the best ways to learn risk management is to trading in market-like conditions. That is where a paper trading simulator comes in handy. A trading simulator provides you with virtual currency, a brokerage account and real-time market conditions where you can trade and learn on the job. Warrior Trading’s simulator has Level II quotes and advanced charts that help you learn what it is really like to be a day trader. The experience that you get on the simulator is invaluable for your day trading education.

3 Things Debt-Free People Do That You Don’t

Things Debt-Free People Do That You Don't

Being financially independent and completely debt-free may be just a dream for a very large population of people. These dreamers are usually the ones who are giving chunks of interest money to the bank on a monthly basis.

But you don’t have to be jealous of the smart savers. Why don’t we go ahead and look into some simple habits they have and other people don’t. We might just find out the secret that is helping these savers keep a ton and break away from the bank’s jaws.

Every penny counts mentality

If you ever went shopping with one of these smart savers or you just had an opportunity to follow him on one of his shopping ventures, you know what I mean by this subheading.

People who are truly fighting for their money will know how to respect it and will not waste it buying stuff they don’t need. It is not unusual to see them following a shopping list while buying food and groceries either.

Why do you think it is important to sit down and make list before you actually go shopping?

Do a simple test.

Try going shopping without a list like you always do and save your receipt from the supermarket.

Then, on another occasion, take a minute of your time to write down everything you need to fill your refrigerator.

Don’t buy anything else than what was written down! Hold on to that receipt also and take your time to analyze how much money you spent on both occasions and how important were the items you bought.

Surprised? Don’t be! It’s those small things that can make a huge difference at the end of the day. Learn and practice to save your money and use it more efficiently.

Don’t miss out on opportunities to get money

Saving is just one side of the coin. Stashing your money infinitely and for no obvious reason won’t get you far either. Inflation will literally eat up all your money’s value in no time if you hold on to it for long enough.

Instead, pay closer attention to what’s happening everyday around you. Get familiar with financial instruments, ways of investing money, follow fluctuations of exchange rates.

Possibilities are almost infinite. Make sure to use that little extra you saved to invest it wisely and multiply it. This will significantly speed up the process of repaying your debt.

Try to negotiate

Negotiation is one of critical skills that debt-free people possess and are not embarrassed to resort to. It’s really a shame for some reason not to negotiate in the first place. It just shows you don’t respect your money enough.

If you look at financially independent people that are always negotiating. Whether they are buying groceries at the local market, searching for a better car deal or negotiating a perk they need associated with their credit card. Always negotiating…

Taken into perspective of a person who is repaying a debt and putting loads of money in the bank every month, negotiating might just mean getting better terms of debt repayment. For example, do you know what is a debt agreement? If you haven’t heard of it yet, make sure to explore that option instead of giving so much more money every month than you should.

Of course, even if you follow in all these steps nobody’s saying that you will succeed to repay all your debts in a jiffy. But if you succeed to change your mentality and set your mindset differently, you are much much closer to reaching financial freedom.

Hellen McAdams

Hellen McAdams is the chief strategist at Marketee.rs. She loves a good digital marketing strategy and isn’t afraid to ask questions everyday to keep up with the industry’s trends. If you have any comments or questions, shoot her a question at @hellen_mcadams.

Instant Online Health Insurance Quotes Without the Hassle

Health insurance has been a hot topic issue in America for a long time. At some point or another we will all have unexpected medical expenses that are a little too pricey to pay out of pocket, and having good insurance is crucial for not only the patient but everyone involved in treating them as well. However, just finding a quote for this insurance can be a real pain in the neck.

Instant Online Health Insurance

What could be done in a few simple minutes turns into a long drawn out process filled endless questions before finally receiving the quote you were inquiring about. Your time is valuable, which is something many companies don’t seem to understand. Thankfully, there are ways to get an instant online health insurance quote without the hassle.

Thank You, Internet

Technology is constantly improving to make our lives simpler in every way imaginable. That includes shopping around for health insurance quotes. What used to take 45 minutes over the phone only takes a few clicks of the mouse now.

By simply typing in a few pieces of information you can immediately find, invest in the right plan available to you and also chose among a wide variety of providers. In most cases, sites will only require a zip code, date of birth, and gender so you can access dozens of accurate quotes. Before filling in any information, it is always a good idea to read up on the company first.

What to Know

Health insurance companies vary widely in their policies, making it important to understand some of the terminology they will use in order for you to make an informed decision. Here are the most common terms you will see.

  • Premium – This is simply the amount you pay each month to keep your insurance active, regardless of whether you use it or not.
  • Copay – This is the amount you will be required to pay out of pocket for doctor’s visits, physicians, a trip to the emergency room, and prescriptions.
  • Deductible – A deductible is the amount of the money you must pay before your insurance provider begins to pay for any portion of your medical bills.
  • Coinsurance – After you have reached the amount of your deductible, coinsurance is the percentage of the bill you are responsible for.
  • Out of pocket maximum – This is the total amount you will have to pay within a year. After this amount is reached, your insurance provider will cover any and all costs.

Each of these categories will be different depending on the insurance company, making it important to compare and contrast multiple companies in order to find the best coverage for your specific needs.

Finding the Right Coverage for You

After examining the out of pocket costs associated with a provider’s coverage, it is important to look at the benefits they offer. Certain policies may cover a wide range of services from mental health care to physical therapy and everything in-between, while others may offer coverage for less services but higher amount of coverage for things like emergencies. By comparing these policies online, it is easier than ever to determine what types of coverage you and your family will need.

Instant Online Health Insurance

Comparing networks is another crucial part of finding a health insurance plan that will work best for you. If you already see a specific physician, make sure that they are covered by the provider’s network. Some companies work inside of very large networks, giving you several options when you need medical aid, but look to see if their network covers facilities in your area.

Getting a quote online instantly is easier than ever. In a matter of minutes you will be able to compare quotes from various companies, and find the best policy for you.

Time Horizons: Reasons Why You Should Re-evaluate Your Investment Strategy

“The individual investor should act consistently as an investor and not as a speculator.” – Ben Graham

The ongoing global turmoil continues to play a significant role in the current financial market volatility. This situation does not mean that investors should sell off their investments and withdraw their money from the capital markets or stock exchanges. However, it is advisable that investors re-evaluate their time horizons and trading strategies.

Time Horizons and Investment Strategies

Before we look at reasons why you should relook at your trading tactics, let’s look at what a time horizon and an investment strategy are:

Trading/Investment Strategy

Wikipedia defines an investment strategy as a “set of rules, behaviours or procedures, designed to guide an investor’s selection of an investment portfolio.”

Not all traders have the same end goals and profit objectives. Furthermore, different strategies suit individual investors as each person has different strengths and skills. The common denominator is that all investors have to decide where their line between risk and return is. Traders can take the middle road; while, others accept a higher risk for the expectation of higher returns and vice versa.

Time Horizons

Simply stated, a time horizon is the “length of time over which an investment is made or held before it is liquidated” or closed.

A short-term trading strategy’s or day-trading’s time horizon will range from a few seconds to an entire day. The takeaway factor is that the trading position must be opened and closed within a single day. On the other hand, a long-term strategy’s time horizon can be indefinite. Finally, investment time horizons are determined by the investor’s goals and not by the mechanism.

Reasons to re-evaluate your investment strategies

As described above a time horizon or trading tactic is determined by your reasons for placing the trade in the first place. Not all deals have to have the same strategy. Ergo, all underlying assets are different and react to the market conditions differently.

A Lionexo financial analyst notes that “it is important that every time you place a trade, you first need to evaluate the current market conditions rigorously to determine your trading strategy.” Thus, it is not a good idea to decide on your trading tactics when you first start trading and continue to use the same trading strategy. Furthermore, the analyst goes on to state that the company “believes that to trade successfully in the continued market volatility; it’s wise to employ a short-term strategy.

Therefore, let’s have a look at the reasons why you should relook at your trading strategies:

Your exposure to risk needs to change

It is normal for your risk profile to change several times during your life. For example, when you just enter the workforce, it is a good idea to execute a trading strategy with shorter time horizons; ergo a higher risk. The consequences of losing money are not so dire when you are younger. On the other hand, when you are close to retirement, it is wise to change to a low-risk trading strategy.

Your personal or financial circumstances have changed

During the course of your life, the amount of money that you will be able to invest in the financial markets will change. For example, you will not be able to invest as much money when you marry and have a family as the majority of your income will be spent on looking after your family.

The market conditions have changed

Your trading strategies should be very different between a bull and a bear market. Furthermore, if market conditions are relatively stable, you can consider a medium- to long-term trading strategy with a long time horizon. However, if market conditions are volatile, as they currently are, then you need to consider day-trading or a tactic with a very short time-horizon. It is not a good idea to let trades extend overnight as it’s hard, if not impossible, to predict what will happen to the markets while you are sleeping.

Final thoughts

It is easy to perceive that the takeaway point of this article is not to invest in one of the global financial markets when they are very unstable and volatile. It is not. It is still possible to grow your investments during the current market instability. However, it is vital to consider the longevity of your trades and adjust their time horizons according to the socio-economic and geopolitical climate.

What you need to know before investing your funds?

Our hard-earned money is certainly not something we can play around with, or at least most of us cannot afford such an activity, and that is why it is crucial to be very careful when investing those funds. What this means is that novice investors should take certain precautions before placing their money out in the open, predominantly because of the volatility of current financial markets. Also, it can be a bit challenging to find key investment opportunities across a variety of asset classes including equities and commodity futures, but this does not mean that you should quit even before you dip your toes in the water. Investing may sound intimidating, but in the end – it may all be worth it and you could be making the best decision of your life.

1. Know what your goals are

Self-evaluation is a tremendously important process, in any area of life, and when it comes to business and financial matters – it is always best being honest with yourself right from the start. If you know what you want and establish clear goals, your career in financial trading can have a clear and well-defined direction. Also, you can easily develop plans and strategies if you have an end target, and that is why it is imperative that you analyze yourself and your investing preferences.

2. Create a plan

Going into the unknown without any preparation may sound adventurous, but at the same time – financial experts would characterize this type of behavior as foolish or irrational. In other words, plans and strategies are a must if you want to succeed in the world of stocks, indices, currency pairs, and all other types of assets. For instance, most analysts would recommend the use of a relatively conservative strategy where you automatically invest 5-10% of your monthly income. By obeying the “rules” of your particular strategy, you will have a “safety net” at your disposal, and there will be less risk involved.

3.  Diversify your portfolio

To improve the odds of making a profit, successful investors are always placing their funds on several different assets of which many are contradicting one another. By doing so, the investors are minimizing the risk, and they will always receive a return of a part of their investment, no matter how the market behaves in a given moment. What this means is that you should look for investment opportunities in various sectors, and if you diversify your portfolio – the chances of making long-term profits will increase substantially.

4. Find the right broker

Brokerage companies come in all shapes and sizes, and this can present a challenge to the untrained eye. Of course, the best course of action before placing your name on the dotted line is to perform a background check and to analyze all the features and characteristics of the brokerage house in question. For instance, you can compare the fees they charge for the transactions or account management, but there are numerous other factors which you can use as a reference point.

– The final thought

As we all know, investing is a marathon, not a sprint, which means that you need to arm yourself with bags of patience if you want to enjoy the fruits of long-term investments. Additionally, emotional reactions are strictly prohibited in the financial realm, and the best money-saving tip you could receive is to always follow your strategy – never your heart! Also, periodical revisions and reviews of your performances will provide you with highly valuable feedback, and this information can be used to make you a better investor and to maximize your yield in the long run.