Buying gold

Is Buying Gold An Investment?

Is Buying Gold An Investment?

If you are looking for something to invest in other than the conventional retirement assets then why don’t you consider buying gold. Investing in gold is something unusual because unlike stocks and mutual funds, it is a tangible asset. This means that including gold in your retirement plan, particularly the IRA account, gives you the advantages that you need. By doing so, you will enjoy the investment which is not influenced by any major disturbances in the economy except time. Without a doubt, the value of your gold increase as time passes by. The best achievement that you can have for your IRA account is buying gold and investing it there.

Is buying gold purchasing a commodity, or a currency?

Most people have considered gold as a commodity more willingly than a currency. This is for the reason that gold has been styled into the best and most attractive pieces of jewellery and accessories. However, when you invest the gold in IRA, it is regarded as a monetary unit that can help generate a good amount of profit when retirement comes. Keep in mind that gold as pieces of jewellery and decorations cannot be included in an IRA account due to the fact they have their premium value. What is emphasized here are gold bullion and gold coin products. If you are unable to find gold for yourself and wants to invest it in your retirement plan, your best option is buying gold.

buying gold

When buying gold, time is key

Patience is very important when choosing the gold you want to invest especially when buying gold coins Even if all of them are gold, it is very important to have knowledge about their respective value since some might be more valuable than the other. Sometimes the value of coins and bullions are derived either from their type or age. The retirement portfolio can increase in value by including these types of gold. To maximize the way your account is generating money for you in the future, you should include gold in IRA now.

Buying gold does not any scientific method at all. Since you are investing, it is very important to know the gold that is available for purchase in the market and study if these are worthy. One act that you can do is to study the gold’s history briefly and how its value increase. You need to think twice though since gold has a limited supply which makes it very valuable. Remember that you are unable to buy the gold anytime, anywhere without any competition but you are able to sell the gold anytime, anywhere with the competition. Negative factors in the economy affect the price of gold but if it is included in an IRA account, the value of gold is untouchable.

Buying gold is easy, and you should be doing it

There has never been an easier way of buying gold than today. Individuals may purchase gold anytime, anywhere like jewellery shops or via online. By searching intensively to have the best gold dealers in the gold market, you will come across with the best and reputable ones. There are also helpful guides that are offered by these websites which are very helpful to your cause. Asking for advice from experienced investors and experts is the best thing to do once you invest your gold in your IRA plan. They can show you the right way on how to invest the gold in your retirement plan while showing you the best way of maximizing this asset.

trading commodities

What Is Commodities Trading?

What Is Commodities Trading?

commodities

Commodity trading refers to the act of purchasing and selling natural resources. In simpler terms, it means that the parties involved trade in non-manufactured items. These are items which are cultivated from the soil or which occur naturally in the environment.

In regards to commodities trade, two main types of goods are usually involved. These are, soft commodities and hard commodities. Soft commodities refer to agricultural produce for instance wheat, barley, and livestock. Hard commodities on their part refer to metals and energy. Examples include gold, silver, gas, and electricity.

To make it easier for understanding, commodity goods can further be classified in four categories. These include:

1. Metals

Include gold, silver, platinum, and copper among others. Gold and silver are in particular more frequently traded in comparison to the other metals.

2. Energy

Includes crude oil, gasoline, natural gas, and heating oil.

3. Agricultural crops

Include wheat, rye, oats, barley, corn, rice, beans, nuts, cocoa, coffee, tea, cotton, pyrethrum, and sugarcane among others.

4. Livestock and meat

Include cattle, chicken, pigs, beef, and lean hogs among others.

A market driven by demand.

Supply and demand is key with commodities trading

Away from its definition, commodities trading is a market that is by and large driven by demand and supply. The lesser a commodity is in supply, the higher the demand for it will go and similarly its price. The reverse is true for a case of increased supply.

There are many factors which play out to influence the forces of demand and supply. One of these is the weather. Negative weather conditions such as prolonged droughts or hurricanes can lead to poor crop performance and poor harvest. This in turn translates into scarcity of agricultural commodities leading to an increased demand for them and hiked prices.

Aside from weather, other factors such as politics and economic changes can also control demand and supply.

A lucrative online trade

Although the internet has traditionally been a platform for stock trading, more and more investors are now taking to the net to sell commodity goods. Unpredictable stock markets have forced many an investor to try their luck in commodity trade.

Additionally, the online commodity market is also attractive to its low cost of operation. The cost of premises and other physical operation costs are done away with when you operate online. Furthermore, we can also unanimously agree that online trading exposes you to a wider market than you would ordinarily have.

Online commodity exchange has served to make things easier for many manufacturers. Thanks to ease of accessing sellers through the internet, they can now easily purchase raw materials and use them to maximize their productions. Examples of sites which have made commodity exchange possible are ICE, CME and NYMEX.

How commodity trading occurs

Commodity traders are commonly motivated by a single goal, to make the maximum possible profits from their sale of commodity goods. That being, most commodity traders would want to time their sales to coincide with periods of increased demand. Sellers are not alone, buyers too want to make the most out of their money. They wish to buy high quality goods but at the cheapest price possible.

Because of the conflicting yet somewhat similarly interests of the two parties involved, there has been need that a compromise be reached. This has in particular led to a form of trading known as futures. This has been a common trading method across the commodity exchange platforms.

What are futures?

Futures refers to a written contract between a seller and a buyer. In this contract, one agrees to buy or sell a given quantity of goods on a future date at a predetermined price. This kind of contract is especially popular with airline companies which have to continuously purchase fuel in large quantities. They are likely to enter such an agreement with a supply to help safeguard them against volatile fuel prices.

Futures can further be divided into two categories namely hedgers and speculators. Hedgers are the players who actively influence the prices such as suppliers and manufacturers. Speculators on the other hand may not be actively committed or involved.

Investing

How to invest in the NASDAQ

How to invest in the NASDAQ

how to invest

Over the years one of the most intriguing factors about online investments has been choosing companies to invest in and the ones not to. NASDAQ stands for National Association of Securities Dealers Automated Quotations which was established in 1971 where it offered an easier way for traders to buy and sell stocks through computers. So far the company brags of over 3,000 traded companies on its platform and more so, works with people from all parts of the world. It’s very easy to invest in the NASDAQ with a discount brokerage like Questrade or a Robo-Advisor like Wealthsimple. But, keep in mind you are not actually purchasing the NASDAQ when you purchase an individual stock ON the NASDAQ. If you aren’t comfortable with self-directed investing, we highly suggest Wealthsimple. You can check out a great Wealthsimple review here.

So it could be you are new to the trade and would like to get a feel of the stock exchange but still debating on if to take the dive or not. There are various guidelines on how to pick companies to invest in. Most of the time, brokerage companies make it easier but considering the fees and the expenses that come with it, it would safer to know how the trade works. Therefore, having a few tips could save you a lot of money in the long run. So these are the facts you need to look out for every company regardless on if its on NASDAQ or not.

1. Revenue Performance

When investing in public companies there are companies that seem to be doing well but are really not doing that well and those that seem to be doing poorly, but their historical performance suggests otherwise. Therefore, the first step is to assess if a company’s revenue is growing or not. If at least for the last quarter the company has not been growing you may want to take a pass. However, you also need to look at its historical performance, if there are indicators that it would plunge only further just move on to other companies. Also if the profits have been on an upward trend, that’s a good sign.

2. Companies’ Earnings Per Share

Earnings Per Share are the profits earned by a company after all its taxes and expenses have been deducted which is meant to be split among its shareholders. Therefore, the higher the EPS the better the chances of making profits with the company and the lower the EPS the slimmer the chances of earning much from it. But for experts it is often said that a company that is temporarily suffering losses a person could buy shares at that price and wait for the company’s performance to improve and then sell them back.

3. Surprise Earnings

For every company there are analysts who will forecast positive earnings or negative earnings. For instance analysts may forecast that Company X would experience a 2% growth in revenue and Company Z could experience a -1% loss in its growth. The surprise would be if Company Z actually experiences a 1% growth while company X experiences only a 1% growth in its income. The company that has a positive growth for over 3-4 quarters would be safer to invest in compared to the others.

4. Growth in Company’s Earnings

Financial analysts often project a company’s performance over an year’s period to over a 5-year period. So a investment forecaster could project an 11% growth in a company’s earnings for over 5-year period or a 1% growth over the 5-year duration. It is mostly advised to invest in companies with at least over 8% growth in earnings in the 5-year term. Such a decision would ensure that even if you invested $1,000 in the company for a period of five years you will earn at least $80 profit compared to making a $10 loss from the forecasts.

5. Earnings in the Industry

Every company that operates in a particular industry can be used as a benchmark based on price-earnings or not. Therefore, if your company is in the real estate industry it would be good and vital to compare its price-earnings in the industry. If the company has a higher price-earnings when compared to its competitors then you would have a good deal going for you.

In conclusion

In other words, there’s a lot that goes into investing in the stock market and sometimes, it is safer to understand how the stock market works first before placing any money on it. However, if you feel you need to invest in shares you could start with money you feel you wouldn’t be afraid of losing. Most of the time, analysts advice starting with $100 and see how well it does. If possible use the returns on the initial amount to invest more in the company.

The NASDAQ

NASDAQ Stock Exchange

NASDAQ Stock Exchange

NASDAQ

It is not strange today to hear the news talk about the stock market. However, it is usually strange to a lot of people to hear economic terms used by the business news anchors when they talk about the stock market. In these modern times, a day doesn’t pass without bumping into something that touches on investing or the stock market. Therefore, the term stock market is actually familiar to a lot of people. The big question is ‘Do you understand how the stock market works? Do you know what a stock exchange is?’

What is the NASDAQ?

First, let us clear the air, NASDAQ is not a space station. In fact, its concerns are very far from dealing with space issues. It is a stock exchange located in New York and it is second largest after the NYSE. A stock exchange is a regulated market where shares of securities are sold and bought. In this case, a security is a financial instrument which can be purchased and sold in stock market. Example of securities include:

1) Stocks

When you buy stocks, it means you have ownership in that particular publicly traded company. Each stock represents a fraction of ownership; therefore, the more shares you have the larger the ownership you have. There are different classes of shares:

– Common stocks

If you buy common stocks, then you will have the privilege of voting on issues of composition of the board of the company and the corporate policies of the corporation. One thing that you have to always remember before buying this type of shares, is that, in case of liquidation, common stock holders are usually not given any payment. Therefore, you should consider this risk before purchasing common stocks.

– Preferred stocks

If you buy this kind of shares, you will only have ownership rights but will not have the privilege to vote on issues affecting the corporation. However, this type of stock is advantageous because dividends are usually paid to preferred stock holders before the common stock holders. In the case of convertible preferred shares, you can convert them to common shares of that particular corporation.

2) Bonds;

When you buy bond, it means that the government or a corporation owes you. There are 2 main types of bonds:

– Corporate bond
– Government bond

If you buy bonds you are set to receive interest payments at a regular interval. The interest is known as a ‘coupon’ and are normally paid until that particular bond matures. You should also be aware that if you own bonds you are usually given priority over the shareholders.

3) Options;

When you buy options, you are granted the rights to buy or sell an asset. This means that you can buy or sell the underlying asset at a given price and on a given date.

What are biggest companies on the NASDAQ?

NASDAQ started operations in 1971 as the first stock market which operated electronically. The electronic trading attracted big companies to the NASDAQ.

First, you should understand that different companies have different market capitalization. The companies with the largest market capitalization are the largest companies on NASDAQ. Market capitalization is the number of outstanding shares by the current share price. Here are the top 5 biggest companies on the NASDAQ in terms of market capitalization

Apple;-It launched its IPO on December 1989 and each share was $22 and the IPO generated the highest capital ever since the IPO of General Motors which was released back in 1959.
Google; – It launched its IPO on December 2004 and each share traded at $85
Microsoft; – It launched its IPO on March 1986 and each share traded at $21
Amazon; – It launched its IPO on May 1997 and each share traded at $18 and later closed at $23
Facebook; – Its IPO was launched recently in 2012 and each share traded at $38

What is special about NASDAQ?

Throughout its development, NASDAQ has been special in a lot of ways. First, it had unique kind of infrastructure which allowed it to trade electronically. At first, it only offered electronic quotation but the trades were not electronic. However, it was later able to trade shares of the listed corporations online.

Another special aspect of the NASDAQ stock exchange is its ability to extend its activities to other continents. You have probably heard of globalization and NASDAQ is the epitome of internationalization. This is because it was the first American stock exchange to form an intercontinental linkage of the stock market. In fact, this linkage with London Stock Exchange was the first of its kind in the whole world. It also extended its operations to Europe by purchasing EASDAQ in 2001.

The best thing about the NASDAQ is that it appointed a woman by the name Adena Friedman as the CEO. She was the first woman to head a major stock exchange in the United States.

Conclusion

The information above gives you an idea of what a stock exchange is and gives you an insight into the nature and operations of the NASDAQ. Therefore, if you are willing to invest in the stock market, you are equipped with the basic tools that will allow you to make sound decisions. You should keep in mind that investing in the stock exchange has its own risks and rewards; therefore, you should do enough research on the companies you wish to invest in. Good luck!

The NASDAQ

History of the NASDAQ

History of the NASDAQ

NASDAQ

The world’s stock markets as we probably are aware sprung into reality in the nineteenth and twentieth centuries. The New York Stock Exchange was made in 1817 and dominated the world economy for about three centuries until the point when the NASDAQ was created.Through the NASDAQ, the stocks being obtained and sold are sent to the merchants as a PC program much like the TSE Index. This encourages the merchants to make use of ongoing statements for enhanced purchasing as well as offering appraisals. Stocks traded on the NASDAQ are done on the web, which implies there is no physical exchanging of stocks.

The National Association of Securities Financial and Dealers Regulatory Authority made the NASDAQ in 1971. Its creation was planned to empower traders on a straightforward framework that was the first to be modernized. The NASDAQ initiated operations on February 8,1971. The trading term Nasdaq moreover fuses the Nasdaq Composite, a rundown of more than 3000 stocks recorded on the NASDAQ exchange.

Development of Technology and its Effect on the NASDAQ

On account of its set-up, the Nasdaq is the worldwide electronic commercial center for the exchange of securities and the benchmark list for innovation stocks. The automated framework in the NASDAQ was first conceptualized of its style and it was much quicker and more efficient than other exchanges. Most brokers found the more established framework wasteful, and the NASDAQ was intended to change that.

Its coordinators couldn’t have envisioned the advances in development we have today. However, they finished an exceptional movement in making a system that would progress with development. The improvement has made the NASDAQ a standard exchang in a significant number of the world’s business segments today. Its proficiency was further exacerbated by the way that various tech mammoths recorded with the NASDAQ in their underlying days.

Organizations Listed on the NASDAQ Exchange

Its innovation-based model makes the NASDAQ composite the most loved of the current exhcnages. Because of this, it isn’t surprising that the world biggest tech organizations are recorded on the NASDAQ composite. These organizations include Apple, Google, Oracle, Amazon, Microsoft, Amgen, and Intel. Be that as it may, they are only a small amount of the more than 3000 stocks trading on the exchange.

Expected to be the main electronic securities exchange, the NASDAQ has kept on assuming that part in a consistently changing online stock world. With innovation changing each day, the NASDAQ’s essential capacity may well be additionally reclassified as the worldwide markets acclimate to the evolving condition.

NASDAQ makes stock trading better in general by permitting numerous market contributors as well as traders, brokers and others to trade. At present, most of the new stocks are being traded on NASDAQ and this also involves retail, infrastructure, economic areas, media, technology and more.

Functioning of NASDAQ

NASDAQ is a programmed coordination that deals in stocks. On the spot quotes are made available for securities because NASDAQ does not need to rely on a trading floor, which is the traditional way of dealing with stock pricing. NASDAQ is also integrated into the over-the-counter stock market. As a result of this, when trading and selling stocks, a client’s stockbroker can go through the quotes and feed stock quote information for the selected stock into the computer. The computer finds the best price on the stock and the business transaction is completed.

Stock Indexes

The Differences Between The NASDAQ and NYSE

The Differences Between The NASDAQ and NYSE

NASDAQ and NYSE

You can learn to invest pretty easily these days because there are so many resources available to you on the internet. You will learn about many different things as you invest, and you may be confused about why the NASDAQ and NYSE are different. You may think that these indexes seem the same, but you will find that the stock indexes are a bit different.

What Is The NYSE?

The New York Stock Exchange is the place where you see people ring the bell, and they do most of the recording for financial shows from the floor of this exchange. When the stock market crashed in 1929, it was this market that fell first. It is right on Wall Street, and it is the place where people used to come to make a name for themselves as investors. There are many stocks traded on this exchange, but it is not the only exchange in the world. The NYSE is the most notable exchange in the world, and technological advancements have evolved them from a floor trading based index to much more than that.

The NYSE is the place where most blue chip stocks are traded. You will not necessarily find tech companies here because they have an exchange that is meant just for them. There are quite a few different stocks that trade on the NYSE that you may be familiar with such as Chrysler, GE, and General Motors. You will find Ford on this exchange, and you will be quite happy with the progression in your investments on the NYSE as it mostly consists of proven companies that issue healthy dividends. People who are investing in the stock market may start here, but it is not their only option.

What Is The NASDAQ?

There are a lot of stocks on the NASDAQ, but it is mostly technical stocks such as Facebook and Google. The NASDAQ is a very large exchange that is issued many new stocks every year.. There are many people who will use the NASDAQ instead of the NYSE because they want to invest in tech, but there are others who invest in both because they have broad diversification.

Diversity Of Investments

The diversity of your investments is perhaps the most important thing when looking at your portfolio. If you invest all your money in one stock, you could lose it all at any time. Even if the stock just falls a little bit, you will lose too much money.

Your investments may span across both the NYSE and the NASDAQ, but you must ensure that you have taken a long and close look at the NASDAQ because all the new tech companies you see coming out with their IPOs are there. Facebook is there, and Google is in the same place. Snap is the company that owns Snapchat, and they have their stock on the NASDAQ.

Technology Rules

Technology is the ruler of almost all stocks in the modern day, and many people are moving on to things such as technology and clean energy. You may find a few clean energy companies that will help you earn money, and you will begin to learn quite a lot about which companies make the most money.

The NASDAQ Is Growing Quickly

The NASDAQ has been growing steadily over the past decade, and it has taken on the most companies of all the stock indexes, and companies are turning to the NASDAQ because they believe that it is the simplest place to issue their IPOs. Someone who is interested in investing in IPOs will find more happening on the NASDAQ than anywhere else.

How Do You Invest In The NASDAQ?

You can invest in the NASDAQ with help from a brokerage of some kind. The brokers that you work with will help you make your trades, and they will show you how to make more money by helping you out with stocks and investments that have the most potential through their trading tools and screeners. You may choose any brokerage firm you like, and you may make your investments online or over the phone(be aware of phone charges these days).