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Three of the Best Investment Options to Consider

Investing is a pursuit that suits many. An ideal means of increasing your income and boosting your bank balance, it also offers excitement, challenge, and complexity to those seeking a new and compelling pastime.

It’s common for those thinking of investing to struggle at the start of their venture. Many people simply don’t know where to begin, and with so many instruments and options to consider, this is hardly surprising.

So, to help you gain a head-start, here are three of the best investment options to add to your portfolio…

#1: Precious Metals

Precious metals are always a good starting point for those who choose to invest, and this is largely down to their ‘safe haven’ properties. Gold, in particular, tends to hold its value during periods of economic turmoil, and indeed often sees an increase in its price tag when times are tough. Silver acts in a similar way, but has the added advantage of enjoying a surge in popularity thanks to its growing usage in industry. With products as diverse as cars, cameras, and even industrial machinery utilising it, it’s worth looks set to continue booming throughout 2016, making it an ideal addition to your portfolio.

#2: Forex

For those looking for a more high-risk venture than precious metals can offer, the foreign exchange might be worth considering. Trading around the clock, the currency markets are flexible, accessible, and have the potential to be highly profitable. Indeed, with a reputable broker like OANDA to aid them, many investors enjoy significant successes. Although the risks can be just as great as the potential rewards, forex trading remains an ideal challenge for those looking for excitement, exhilaration, and the chance to make big money.

#3: Shares

Thirdly and finally, look at investing in shares. The stock markets are filled with a wide variety of different businesses, all offering you the opportunity for part ownership. A lot of inexperienced investors, in particular, gravitate towards these, thanks to the familiarity of the names that you’ll be trading. Offering a unique chance to play a role in the future of your favourite companies, as well as the possibility of making some tidy profits, the stock markets can be an ideal addition to any investor’s portfolio.

Choosing the assets that you add to your portfolio is essential to your success on the financial markets: choose well, and profits are there for the taking; choose poorly, and you could scupper your opportunities. Do your research, make your selection with care, and secure the future you’ve been dreaming of.

5 Things To Consider Before Investing On Gold

1. WHAT TYPE OF GOLD INVESTMENT?

There are two types of gold investment: physical gold and paper gold. The physical gold consists of the tangible gold bars, jewelry and coins. While the paper gold consists of the gold exchange traded funds or gold-related equities in the stock market.

The latter is more at risk with fraud, as you have no guarantee that the fund holds the amount of gold they claim. Furthermore, the stock market can be vulnerable due to the government intervention and hacking.

2. WHY SHOULD YOUR PORTFOLIO INCLUDE GOLD?

Including gold to your overall portfolio is a good way to diversity your assets. As the price of gold generally moves in a different direction than other types of investments, it can balance out your returns when the others are performing badly.

Cary Guffey, a Certified Financial Planner Professional and Board Ambassador, forewarns that you must not put too much of your wealth in gold. According to him, a good rule of thumb is having no more than 5% of a certain commodity in your portfolio.

3. HOW PURE SHOULD YOUR GOLD BE?

Pure gold (100%) is too soft to manipulated as bars and jewelry, therefore it is mixed with other types of metals such as silver, nickel or copper to improve its strength. Based on the content of gold, it is divided into “karat” configurations namely: 9k (37.50%), 14k (58.33%), 18k (75,00%), 22k (91.66%), 24k (99.99%). Ensure that you are getting what you paid for.

4. WHERE SHALL YOU BUY THE PHYSICAL GOLD?

In Singapore, physical gold can be purchased online or at the bank. For online bullion shopping, consider the trusted bullionstar.com where 1 gram of PAMP Gold Bar costs about S$79.54. Alternatively, you can purchase gold bars and gold bullion coins at UOB.

5. WHAT IS THE REAL PRICE OF GOLD?

Just like anything else, the price of gold is influenced by the supply and demand dynamics. In fact, 5 years ago gold’s price was about S$1,800 per ounce compared to today’s S$1,664 per ounce. Alongside this dynamics are other factors that affect the gold’s price…

Image Credits: bankrate.com

Sources: 1, 2, 3, 4, & 5

You Wouldn’t Believe How Much Gold’s Price Has Fallen

Dan Gable once said: “Gold medals aren’t really made of gold. They’re made of sweat, determination, and a hard-to-find alloy called guts.”

In his own definition, gold’s essence translated to the person’s special characteristics. However, majority of the world perceives gold as a value commodity.

“What makes gold so valuable?”, you may ask. For starters, it lasts for a long period of time, it can be easily manipulated, and its appearance is very appealing.

But aside from this, gold is a rare element because no mine has an unlimited supply of it. Once all the gold is sold and spent, the mining company’s stock will fall. Any efforts to get more gold will affect the company’s wealth.

Gold’s rarity makes it more valuable than other common elements such as aluminum or iron. Its prices are not set by a single organization, rather they are influenced by the cost of production and the amount people are willing to pay for it. For instance, when the demand of gold is relatively high at a given base price and the competition is higher than expected, it is just right to increase the base price in order to regulate the demand of gold. And if not so many people are interested in purchasing gold, its price will stay closer to its actual production cost. Whether you like it or not, we are currently observing the latter statement about gold.

Gold’s price has dropped by about 1.4% last Thursday (14th April) – that is US$1,228.70 (S$1676.32) per ounce. This is in conjunction with the rising Asian shares and the strengthening of US dollar. Moreover, regional currencies weakened against the greenback after the country’s central bank set the rate of appreciation of the Singapore dollar policy band at 0%.

According to Gold Rate 24, a website that partakes information about the gold’s prices around the world, an ounce of 24K gold is priced at S$1,672.04 (US$1,226.99) while a gram of 24K gold is priced at S$53.76 (US$39.45) as of today. A substantial drop has been seen within 30 days from S$1,702.81/oz to S$1,672.04/oz.

HSBC analyst James Steel was quoted saying:

“Gold is weakening on a recovery in investor risk appetite. The sharp (equities) rally and the leveling off of gold-ETF demand recently argue for some period of price consolidation.”

Steel’s claim of the lowering investor risk appetite towards gold is supported by the figures of the world’s largest gold-backed exchange-traded fund – SPDR Gold Trust. Assets of SPDR Gold Trust fell 5.05 tones to 806.82 tones last Thursday, its lowest in a month.

The demand drop of gold affects the prices of other valuable elements such as silver, platinum, and palladium.

Sources: 1, 2, 3, 4 & 5

The Good And The Bad Sides Of Jewelry Investment

More than just a sparkling indulgence, investing on jewelry is an embedded tradition in many Asian cultures. In fact in Indian and Chinese cultures, jewelry can be given as gifts as individuals approach the marrying age.

To these cultures, investing in gold jewelry is a sound investment. Truly, gold has continued to rise, up to five-fold in a decade, in value despite the worldwide economic slowdown.

However, anyone who is considering jewelry as a means of investment needs to carefully contemplate on its advantages and disadvantages.

Here are some of them:

LABELS

It is not just about what jewelry pieces you buy but where you buy them. Pieces with designer labels are more susceptible to the erosion of value (over time) as you are paying mainly for the marketing costs.

For example, a sterling silver necklace sold by a lesser known retailer in the third world country may cost about S$15 while a sterling silver necklace sold by Tiffany & Co. in the first world country may cost about S$400! They are made of the same material but the branding and craftsmanship attached to it makes the difference.

PORTABILITY

Jewelry is an investment that you can wear. Whether it be gold rings, silver necklaces, and diamond earrings, you can always carry your wealth around wherever you go.

Image Credits: pixabay.com (License: CC0 Public Domain)

PRICES

The craftsmanship can add up to 30% on the price of the actual jewelry pieces. So if you want to benefit from the full price of gold alone, you can invest in products and funds that are associated to gold. For example, you can consider SPDR Gold Shares as they are backed by gold exchange-traded fund.

VINTAGE

Some pieces from the past are still fashionable today. Vintage jewelry from 1920s to 1930s have strong linear designs incorporating diamonds and platinum that can very much look modern!

Furthermore, second-hand jewelry (e.g., at auctions) are less expensive than contemporary pieces as they are not affected by the mark-up of the retailers. If you purchase this from a source that has low costs, it can prove to be profitable to own.

TRADITIONS

As said above, a positive side in jewelry investment is keeping one’s heritage. In fact, India is one of the world’s largest gold market due to the cultural demands during Deepavali and wedding season (i.e.,jewelry may be offered as wedding dowry).
The embedded notion is that jewelry retains (if not increases) its value over a long period of time. Although, this is not always the case.

Image Credits: pixabay.com (License: CC0 Public Domain)

The value of investments and gains can go up as well as down. Sometimes your may get back a value lesser than the amount you have invested. This is why it is recommended that you seek expert financial advice first before making any investment decisions.

Sources: 1 & 2

Spend Under S$10 To Bring Back The Sparkle Of Your Jewelry

Letting your treasured necklaces, bracelets, rings, or other heirlooms shine again can cost you about $35-139.90. That is the hefty price you may pay if you want to purchase an Ultrasonic Jewelry Cleaner. So..instead of getting expensive cleaning machines, professional cleaning services, or cleaning solutions, opt for practical Do-It-Yourself ways to clean your favorite bling! Here is how:

1. DIAMOND AND SILVER POTION

This mixture is exclusively for cleaning your precious diamonds and silvers. The ingredients are mostly available in your kitchen thus; you would not have to spend a lot.

Ingredients:

Small bowl

Aluminum foil

Paper towel

Old toothbrush

1-tablespoon salt

1-tablespoon baking soda

1-teaspoon dish detergent

1-cup hot water

Procedure:

Fill the small bowl with a square sheet of aluminum foil then, put the salt, baking soda, and dish detergent. Watch as the liquid buzz while you add the hot water. Afterwards, drop your jewelry there and leave it for 10 minutes. Once the minutes are up, remove the jewelry and use the toothbrush to gently scrub around any prongs, groves, or gemstones. Lastly, rinse and pat dry.

Image Credits: Aleksey Gnilenkov via Flickr with Creative Commons License

*Note: For Pandora’s jewelry, do not use this method as it may be considered too harsh. Instead, check out 3c. below.

2. GOLDEN POTION

One of the biggest reasons why your gold does not shine anymore is because it is filthy! Clean your gold jewelry the right way with this mixture. Much like the diamond and silver potion, ingredients for the gold mixture are available in your home.

Ingredients:

Toothpaste

Old Toothbrush

Soft cloth (dry)

Procedure:

Apply the toothpaste on the toothbrush and scrub the gold jewelry well. If you have a larger piece of gold to shine, repeatedly rinse off the toothbrush and use more toothpaste. Then, rinse it off with water. Lastly, get your soft cloth to dry it. Use circular motions to polish your golden jewelry!

3. OTHERS

a. White Vinegar

If white vinegar had a C.V., its skills would fill 1-2 pages. Yes! That is abundantly skilled this multi-purpose agent is. To clean your bling, mix a cup full of water with a half-cup of white vinegar and stir well. Put your silver pieces onto the mixture and leave it for 2 hours. Once the hours are up, remove the jewelry pieces then, rinse with cold water. Lastly, pat dry with a soft cloth.

Not bad for S$2.60 a pop (i.e., sold at FairPrice)!

b. Beer

A beer that costs you as low as S$3.10-4.50 (i.e., at FairPrice) can not only give you a fun time but also can give you back the shimmer of your jewelry! In a mug of beer, soak your jewelry overnight. On the next day, remove your jewelry and rinse it off in running water. Dry these up and be astonished on how shiny the pieces are!

Image Credits: Aleksey Gnilenkov via Flickr with Creative Commons License

c. Dish Soap

The dish soup sitting on your kitchen sink can also be used to bring back the shine from your jewelry pieces. This is a milder form of cleaning you sterling silver and it works well with your Pandora’s bracelet and charms. Simply add a few drops of the dish soap into a bowl of warm water and let your Pandora sit in it for a few minutes. Clean it with a soft bristle toothbrush if you like and pad them dry individually with a dry cloth. Make sure that if your charms is made of wood, leather or pearl, you should not use this method.

Sources: 1, 2, 3, 4, 5, 6 & 7

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