Gold Price

Gold has been used throughout history as money and has been a relative standard for currency equivalents specific to economic regions or countries, until recent times. Many European countries implemented gold standards in the latter part of the 19th century until these were temporarily suspended in the financial crises involving World War I.^{[citation needed]} After World War II, the Bretton Woods systempegged the United States dollar to gold at a rate of US$35 per troy ounce. The system existed until the 1971 Nixon Shock, when the US unilaterally suspended the direct convertibility of the United States dollar to gold and made the transition to a fiat currency system. The last currency to be divorced from gold was the Swiss Franc in 2000.^{[citation needed]}

Since 1919 the most common benchmark for the price of gold has been the London gold fixing, a twice-daily telephone meeting of representatives from five bullion-trading firms of the London bullion market. Furthermore, gold is traded continuously throughout the world based on the intra-day spot price, derived from over-the-counter gold-trading markets around the world (code "XAU"). The following table sets forth the gold price versus various assets and key statistics on the basis of data taken with the frequency of five years

Gold as investment

Of all the precious metals, gold is the most popular as an investment.^[1] Investors generally buy gold as a hedge or harbor against economic, political, or social fiat currency crises (including investment market declines, burgeoning national debt, currency failure, inflation, war and social unrest). The gold market is subject to speculation as are other markets, especially through the use of futures contracts and derivatives. The history of the gold standard, the role of gold reserves in central banking, gold's low correlation with other commodity prices, and its pricing in relation to fiat currencies during the2007–2012 global financial crisis, suggest that gold behaves more like a currency than a commodity

Explain of Mutual Funds

One of the main advantages of mutual funds is that they give small investors access to professionally managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult (if not impossible) to create with a small amount of capital. Each shareholder participates proportionally in the gain or loss of the fund. Mutual fund units, or shares, are issued and can typically be purchased or redeemed as needed at the fund's current net asset value (NAV) per share, which is sometimes expressed as NAVPS.

Read more: http://www.investopedia.com/terms/m/mutualfund.asp#ixzz2A0zTM3TA

Definition of Mutual Fund

Definition of 'Mutual Fund'

An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus. 

Tips for investing in stocks

Everything you need to know about investing in stocks.

1. Stocks aren't just pieces of paper.

When you buy a share of stock, you are taking a share of ownership in a company. Collectively, the company is owned by all the shareholders, and each share represents a claim on assets and earnings.

2. There are many different kinds of stocks.

The most common ways to divide the market are by company size (measured by market capitalization), sector, and types of growth patterns. Investors may talk about large-cap vs. small-cap stocks, energy vs. technology stocks, or growth vs. value stocks, for example.

3. Stock prices track earnings.

Over the short term, the behavior of the market is based on enthusiasm, fear, rumors and news. Over the long term, though, it is mainly company earnings that determine whether a stock's price will go up, down or sideways.

4. Stocks are your best shot for getting a return over and above the pace of inflation.

Since the end of World War II, through many ups and downs, the average large stock has returned close to 10% a year -- well ahead of inflation, and the return of bonds, real estate and other savings vehicles. As a result, stocks are the best way to save money for long-term goals like retirement.

5. Individual stocks are not the market.

A good stock may go up even when the market is going down, while a stinker can go down even when the market is booming.

6. A great track record does not guarantee strong performance in the future.

Stock prices are based on projections of future earnings. A strong track record bodes well, but even the best companies can slip.

7. You can't tell how expensive a stock is by looking only at its price.

Because a stock's value depends on earnings, a $100 stock can be cheap if the company's earnings prospects are high enough, while a $2 stock can be expensive if earnings potential is dim.

8. Investors compare stock prices to other factors to assess value.

To get a sense of whether a stock is over- or undervalued, investors compare its price to revenue, earnings, cash flow, and other fundamental criteria. Comparing a company's performance expectations to those of its industry is also common -- firms operating in slow-growth industries are judged differently than those whose sectors are more robust.

9. A smart portfolio positioned for long-term growth includes strong stocks from different industries.

As a general rule, it's best to hold stocks from several different industries. That way, if one area of the economy goes into the dumps, you have something to fall back on.

10. It's smarter to buy and hold good stocks than to engage in rapid-fire trading.

The cost of trading has dropped dramatically -- it's easy to find commissions for less than $10 a trade. But there are other costs to trading -- including mark-ups by brokers and higher taxes for short-term trades -- that stack the odds against traders. What's more, active trading requires paying close attention to stock-price fluctuations. That's not so easy to do if you've got a full-time job elsewhere. And it's especially difficult if you are a risk-averse person, in which case the shock of quickly losing a substantial amount of your own money may prove extremely nerve-wracking.

The 8 New Rules of Money by Robert Kiyosaki

THE STOCK MARKET IS DEAD

I see dead people. The dead people are baby-boomers who are counting on the stock market to provide a safe, long-term retirement. Many are going to live a long life, but live in poverty simply because the stock market is dying.

In my book, Rich Dad’s Prophecy published in 2002, I wrote about the biggest stock market crash in history, a crash that is coming around 2016. Obviously my prediction was a long-term guess but the year 2016 seems to be right on target. 

After Rich Dad’s Prophecy was published, I was severely criticized by journalists from publications such as The Wall Street Journal, Money Magazine, and Smart Money. Yahoo Finance dropped me as a contributing writer, simply because I caused too much of a ruckus with their advertisers. It was a gamble stating my prediction, but sometimes a person must say what they must say… even if unpopular. 

Today, I am not alone. Bill Gross, the respected Co-founder of the largest bond fund in the world, PIMCO (Pacific Investment Management Company), is now saying the same thing. On Tuesday, July 29, 2012, he stated that consistent annual returns are a thing of the past. He said, “The cult of equity is dying. Like a once-bright aspen turning subtle shades of yellow then red in the Colorado fall, investors’ impressions of ‘stocks for the long run’ or any run have mellowed as well.” 

He also said the stock market operates as a Ponzi scheme, showing returns that have no bearing on reality. For those of you who have followed me, you know I have been saying the same thing for years. 

A Ponzi scheme keeps investors happy as long as there is fresh new money entering the market. New investors buy stocks that old investors are selling. The eventual panic and collapse will occur sometime around 2016, when there are no new investor blood transfusions for older dying baby-boomers. It will not be pretty. 

Financial planners will always say, “Invest for the long-term.” John Bogle, founder of the Vanguard Funds and another investment professional I respect, continues with the “invest for the long-term” mantra, in spite of what Bill Gross says. 

The question is, who should you listen to? 

My advice is always the same. If you are going to be an investor, first invest in financial education. If you are going to invest in the stock market, take “technical investment” courses. Learn how to make money regardless if the stock market is going up or down. Learn to invest with insurance, such as “stops” and “options.” You still have time to take classes, simulate or practice trading with small amounts of money and prepare for the biggest market crash in history. 

If I am correct and the stock market begins to collapse around 2016, many professional investors will make a “killing.” Unfortunately, those being killed will baby-boomers, amateurs and the uneducated. 

This is why I see dead people. Don’t be one of them. 

Thank you for supporting COR. 

Robert Kiyosaki 

A beginner's guide to investing in gold

Gold has been sought after for its unique blend of near indestructibility, beauty, rarity and because of its status as a means of exchange and universal currency par excellence for centuries.
Empires and nations have sought to possess gold as a medium of international exchange, as a store of wealth and in order to increase and preserve power. Individuals have used gold as a store of wealth and as insurance against the fluctuations and depreciation of paper money and to protect against other macroeconomic and geopolitical risks.

Throughout history, perhaps no other asset in the world has had the universal appeal of gold and this appeal has increased in recent times due to the very significant macroeconomic, geopolitical, monetary and systemic risk facing our modern global financial system and economy.
Successful investing is about the diversification and management of risk. In layman's terms this means not having all your eggs in one basket. We know from history that markets can and do crash and if you are not properly diversified your nest egg can be severely affected.