WHAT IS COUNTERPARTY RISK AND WHY DOES IT MATTER TO ME?

Counterparty risk is a term often used in financial circles but is also a term that many investors do not understand. Here we will examine just what counter-party risk is, and how it may affect you and your investments. COUNTERPARTY RISK: According to Investopedia, counterparty risk is defined as “The risk to each party of a contract that the counterparty will not live up to its contractual obligations. Counterparty risk is a risk to both parties and should be considered when evaluating a contract.” According... Continue Reading

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Billionaires Dumping Stocks- What Does It Mean For Your Portfolio?

Let’s face it. Markets are driven not by the small retail investor, but rather by the big fish-the large banks, financial institutions and people or groups with enough capital to make a dent. These larger market players often attempt to hide or mask their intentions, as retail investors will often try to catch a ride on their coattails. That being said, there have been some interesting developments as of late. Several big market players, guys with names like Warren Buffet and Berkshire Hathaway, John Paulson... Continue Reading

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Gold Hits Two Week High As Geopolitical Landscape Deteriorates

Gold prices hit a two week high yesterday as a mixture of fresh buying along with short-covering drove prices back above the psychologically key $1300 level. Although gold has breached this level to the downside on a few occasions in recent weeks, each and every time buyers have stepped in to scoop up the yellow metal. This is not surprising to us, as we feel the likelihood of gold prices seeing any significant drops given the current state of global affairs is unlikely. So-what exactly... Continue Reading

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The Gold/Silver Ratio

When it comes to investing in gold, silver or other precious metals, we believe that such purchases should be looked at as long-term investments. We believe that precious metals may be beneficial for their potential to hedge inflation, protect purchasing power and also potentially offer a degree of protection from geopolitical risks and economic concerns. That being said, we believe that gold and precious metals should be accumulated over time, and not “traded” in an attempt to time the market. There is, however, a tool... Continue Reading

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Is Now The Time to Buy Gold

Is now the time to buy gold? It seems that everywhere we look these days there is conflict. The world is currently seeing strained U.S. /Russian ties, North Korean tensions, Israel and Hamas at war, and civil war in Iraq to name a few. We are living in very uncertain times, and one has to wonder just how much investors are willing to tolerate before running for the hills. Stocks have been trending higher for years now-years…. Stocks also appear to be very overbought at... Continue Reading

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First Quarter Demand for Gold Remains Robust

The most recent World Gold Council Gold Demand Trends Report has shown that demand for gold is picking up right where it left off in 2013. Q1 demand for gold was 1074 tons, which was nearly unchanged on a year-over-year basis. According to the report, quarterly average demand trends remain intact according to data established over the last five years. Let’s take a closer look at some specific segments of this demand to see what is driving gold: JEWELRY DEMAND Jewelry is the most significant... Continue Reading

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Buying Gold and Seeing the Forest Through the Trees

The gold market has certainly seen some ups and downs in recent years. After topping out near $2000 per ounce back in 2011, the metal has worked lower the last few years and has bounced off of the $1200 area several times. In fact, gold has been trading in a sideways range for some time now-about the last year. We feel that it is extremely important for one to look at the bigger picture when looking at precious metals investments, and we want to try... Continue Reading

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Why Add Gold To An IRA?

Five simple reasons to consider: There are many reasons one could consider adding gold or precious metals to their IRA account or retirement portfolio. Here we will outline what we feel are some of the biggest reasons one should consider an allocation into gold or precious metals, and why we feel such an allocation can potentially play a vital role in safeguarding one’s savings and wealth. 1. Portfolio Diversification-Gold and precious metals can allow an investor to further diversify their portfolio. By adding precious metals... Continue Reading

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