Gold Will Hedge Against Inflation

By Garrett Strong

Get in on the gold action now! Every investor should know that gold is a hedge against inflation. There has been a huge movement in the gold price, and there are several reasons for that.

To protect yourself from out of control government spending and sky high inflation your money needs to be in gold bullion, gold ingots, and gold bullion coins

The gold demand is rising steadily with no end in sight. Investors looking to put their money into hard assets increased the demand for gold in 2008 by 64 percent. Countries who have added to their gold piles include Russia, India, China, and others. The IMF recently made a sale of 200 tons of gold to India.

The amount of gold per capita on the planet is currently 23 grams. That does not even amount to a one ounce coin. The available mined gold on the planet amounts to about $3.7 trillion.

There is around--0,000 tons of gold above ground, and that number increases each year by 2,600 tons. That is an increase of about 2% per year, but that doesnt even come close to satisfying the demand.

The demand is 4,000 tons/year and rising exponentially. Gold has been selling for about the price of production prior to this price rise.

The gold and silver mine supplies have plummeted by 10% due to the low prices. If you add up all of the fundamentals, gold should be much, much higher.

Supply and demand have not played a part in these markets since price manipulation has been occurring. Even though the price of gold has risen to current levels of $1,140/oz, the inflation adjusted price puts gold at around $7,000/oz.

The answer is that there are a few factors that have caused this price suppression and they are still to blame. The central banks have been selling their gold supplies onto the open market in an attempt to suppress the price. It has worked, but central banks are running out of gold to sell.

Even though you can request physical delivery of the gold bullion on the COMEX, some investors have complained of receiving cash settlements or ETF shares instead. The COMEX does not have the gold they claim to have.

The way the default happens is that the COMEX will either give a cash settlement upon delivery, or shares of the GLD (exchange traded fund). Either way, you do not own the physical gold, which means that you are still holding paper. These paper investments have kept investors in dollars, which has fraudulently propped up the dollar.

These fraudulent investment vehicles will blow up, and they are just another bubble waiting to burst. Unless you know for certain that a paper investment has the gold that they claim, stay away from these investments. You should invest in American Gold Eagles, American Gold Coins, and gold bars.

With a crashing dollar, you will be sorry if you choose not to invest in hard assets. With the current price of gold at $1,140/oz, there is suddenly a reason to get out of dollars. $1,058 was the price of gold per ounce one month ago. You can see how far it has come. Gold will protect you and your wealth in this economy. Buy gold now to hedge against inflation! - 23210

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Foreign Currency Trading - Forex A Basic Explanation

By Arthur U. Fellon

The foreign exchange market, also called forex or FX, is trading one currency for another. It is one of the largest markets in the world and everyone from central banks to companies to individuals participates in it. Retail traders are now only a small portion of the entire forex market with speculators making up the biggest portion. The market itself is almost completely liquid and operates 24 hours a day. The chance to make money depends on the belief that the currency you buy will increase in value compared to the one you sold, allowing you to make a profit on the margin.

There are two main theories related to analyzing forex transactions. The 1st is fundamental analysis which looks at the economic conditions surrounding the value of a currency to determine if its price is fair. The 2nd main analysis method is technical analysis which depends on analyzing historic patterns of a currency to predict where it will go in the future.

Generally a smart forex trader will use both forms of analysis when operating in the currency markets. Interestingly the world renowned British financial magazine "The Economist" uses a scale of McDonald's hamburgers and their comparative pricing around the world , back to a standard reference point as to the relative value of foreign currencies vis- a-vis each other. The method has been more than criticized in the staid world of international finance yet the Economist's ledger seems to be remarkably accurate in its statical record and history.

It does not take much at all to cause panic and mayhem in the forex market. If anything it can be said that the whole process is not boring or mundane by any chance. A tropical storm such as Katrina can wreak great havoc and mayhem not only physically by its weather but also weather a storm on the dollar , Yen or British pound Sterling , their value and perceptions of future value. Economics it seems is always driven by the simple concepts of "supply and demand". The major change in the 21'st century in 2009 and on into the new millennium of 2010 is the absolute breakneck speed of communication. What used to take weeks and months to traverse the globe in terms of communication and information now takes but a flash of a second. Sometimes as with natural disasters such as earthquakes or political assassinations , world and thus fortune causing changes can come out of the blue , instantaneously .

Commerce in products and currency trading is as old as mankind itself. Yet nothing is for nothing and there is no such thing as a free lunch , or in this case your personal fortune or family fortunes. It may be easy for many novices , or even those boasting at their local coffee shop -reports prominent economist M.L. Labovitch to appear to have great expertise and have hit the money wealth jackpot machine. Yet it is the consistency that counts. Once may be a fluke - yet has that experiment been repeated a number of times over a good period of time with the same results. Is it the "Midas Touch " of gold and great riches or just plain dumb luck when it comes to their chances at the roulette table of trades in international currencies and financial instruments. - 23210

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Proposal Writing Done Effectively: Utilizing Sample Business Proposals

By Andrew Robertson

There's not a business on the planet that couldn't use a new customer. Particularly in the moody economics of this day and age, learn-as-you-go business proposals simply aren't going to cut it. Forget about improvising and pick up a sample business proposal and use it as a template to create a great business proposal to secure new customers.

One of the most overlooked and simple tasks to help your efforts is pre-writing. Being your first draft, there's no reason to worry about what your customers are going to think -- they're not going to see this draft, so calm down and try to enjoy yourself. By pre-writing you can determine exactly what you're going to pitch, including your goals and any important qualities you have that make you more qualified than anyone else.

Try organizing your thoughts. Break down any goals you may have into simple steps and take notes on what is needed to make each step safely. Be certain to write each of these steps in such a way as to lead the reader to the inevitable goal you stated during your pre-writing.

Now, write a cover letter to place at the top of your proposal. It should be short, so use only two to three paragraphs and simply state the major points of your proposal, i.e. "Our company will assist your business by delivering x, y, and z services. We serve X number of businesses in the region." Though there is nothing wrong with elaborating, keep it simple so you don't overwhelm your actual business proposal.

Next, the hard part: actually write your business proposal. Proposals are usually split into five pieces: the executive summary which states what you do and who you are, a statement of work dictating what services you plan to give your client, a list of steps to achieve your goal, a list of reasons why you are better than the next guy, and last but not least the legalese terms of your contract and payment arrangements.

Don't let yourself freak out over mistakes, as this is still your first draft and will probably be prone to more than a few goofups. Imagine your client sitting with you right now. What could you tell them that would cause them to invest in your ideas?|

Since this is the first draft, quality is not overly crucial at this stage. Realistically, the only thing you need to worry about here is finishing your proposal and fitting your information into the well defined structure of a proposal. If there's anything you want to change -- spelling, grammar, anything else -- it can be done later.

Think about your contract terms and pricing. Look into similar companies to your own and see what they charge. If you have to find out you're overcharging people, it's best to do so when you're in front of a computer screen by yourself rather than when you're sitting down to discuss business with your client.

When you have finished your first draft, you can begin the rewriting stage. Get a friend to read through your proposal so you can find any typo trouble or glaring errors. If there was anything you wanted to change or fix or if you wanted to add another section, do that now before continuing to the final stages.

When you believe you've got your proposal in a finished state, try a little role-playing to head off troublesome customers. Why not try putting on your customer's shoes for a little while? Consider how they'll see your proposal. Is there anything that might hang them up? Brainstorm as many reasons for the client not to buy from you as possible, and then create counterarguments to squash their anxiety.

Building a business proposal on your own might seem like hard work, and it is -- but if you find a sample business proposal to use as a template, the pieces will fall into place faster than you might think. Use the above suggestions and you'll be able to churn out intriguing business proposals that will lead clients to you over the long haul. - 23210

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Writing business proposals can be intimidating -- why not download a sample proposal as an example? Not only will they give you a better idea of what is acceptable and what isn't, but they can also be guides to improve your own writing. To guarantee it is genuine, find your sample business proposal at a legitimate web resource.

Trading Crude Oil Futures (Part I)

By Ahmad Hassam

One thing should be clear to you. Energy markets will be a major focal point in the global financial makers and the global economy for many years to come. The key to understanding energy trading is to understand oil, natural gas, gasoline and heating oil futures.

NYMEX trades futures and options contracts for crude oil, natural gas, heating oil, gasoline, coal, electricity and propane. NYMEX is also home to trading in metals. Trading in energy futures is centralized at the New York Mercantile Exchange (NYMEX), the world's largest physical commodity futures exchange.

For smaller traders NYMEX offers e-mini contracts for oil and natural gas that also trades on the GLOBEX network of the Chicago Mercantile Exchange (CME). Trading in NYMEX is conducted in two divisions: 1) The NYMEX Division and 2) The COMEX Division.

The relationship between energy and interest rates is very important to understand. This relationship ties together the two most important aspects of the global economy: energy (the fuel for growth) and the interest rates (the catalyst that powers borrowed money to do things). Next to interest rates, energy and especially oil is the center of the universe not only for the industry but also for the financial markets.

As a trader, you should know this fact that oil price rise often tends to slow down the economy and lower retail sales as well as consumer confidence with lower traffic on the highways. Sometimes the rise in oil prices leads to the increase in interest rates through the bond market and the actions of central banks and the other times the opposite happens. Rise in oil prices if often inflationary.

Some people consider the Peak Oil idea as controversial but this concept is increasingly plausible given the state of the global oil industry. Oil production in countries like Venezuela, Iran and Nigeria has peaked and is going down. Non OPEC sources of oil like North Sea and Mexico are also showing sign of declining production. There has been no major oil well discovery for the last few decades.

Many oil wells have gone dry. US was a major producer of oil in the beginning of the 20th century but over time, depleted all its oil reservoirs. The last oil well went dry in Texas in the early part of'70s. Oil production in countries like Venezuela, Iran and Nigeria has peaked and is going down. Non OPEC sources of oil like North Sea and Mexico are also showing sign of declining production. There has been no major oil well discovery for the last few decades. Some people consider the Peak Oil idea as controversial but this concept is increasingly plausible given the state of the global oil industry. The peak oil concept is very important for you to know. This means that now in the next few decades, we will be witnessing an uptrend in the oil prices as the global demand increases and the supply is unable to catch up with the global demand of oil. When oil prices reach above $100 per barrel, it becomes too expensive for the industry as well as the private consumer. With this price level, chances are that more and more investment will go into the alternative energy industry. Now you should keep these facts in the background of your mind as a trader. In any case, most of the experts now agree that in the next 10-20 years, the oil production will peak and after that it will start declining.

Now this means that in the short run, following oil prices can be a highly profitable strategy. Your aim as a trader is to make quick profits by trading the price fluctuations in the oil market. So the important facts that you need to keep in the back of your mind while trading oil is: 1) Demand fluctuates but supply of oil is finite. 2) The world runs on oil and any threat to the supply of oil often leads to rising prices. As an oil trader your primary goal is to consider the effects of events on the supply of oil and correlate this effect with your charts. - 23210

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Mr. Ahmad Hassam is a Harvard University Graduate. Trade Dow Futures . Learn Commodity Trading !

Facts About First Spouse Gold Coins

By Geoffrey Goodwin

If you are a collector of coins, you will be pleased to know that 24 karat first spouse gold coins are now being released. This program is scheduled to run through 2016. So far, only nine spouses have been released to the public.

This is a great way to invest in gold, because gold quality is of the highest standard possible in these pieces. They are also great for coin collectors because of rising gold prices. Due to the prices being so high for manufacturing gold pieces, the prices of the coins themselves have risen in value. This makes every coin in the set a sure bet for making a profit. Even the unpopular prints of the coins have risen in value.

These coins can also be collected by people who find the historical significance of the printing interesting. Many of the first spouses had integral parts in running the White House when they lived there. The coins depict this involvement that they had. One presidential spouse was her husband's private secretary during her stay in the White House. She was very involved in the affairs of her husband. This led to her importance becoming almost as great as his presidency. For this reason, a picture of her assisting her husband with clerical operations is presented on the backside of the coin. On the front is an elegant rendition of what she looked like in her time.

These coins are great for collecting because there is a limit of 40, 000 on each one being made. This will give them value in the future when these pieces are harder to come by. They are also made of the highest quality gold. They are a great addition to the printing of the Presidential Dollars already in motion. A good collection can be created by using both types of coins as the center point of a collection.

Not many people are willing to pay such high prices to obtain these coins. Their prices are adjusted to the ongoing gold prices too. The amount of coins being sold are far less than the established limits. This will likely lead to a very limited supply of each one in the future. This can make even the unpopular versions valuable in the future.

The first spouse gold coins have only been printed with nine different people on them so far. Those who have already been honored with this printing include Thomas Jefferson, Martha Washington, Abigail Adams, Martin Van Buren, Andrew Jackson, Louisa Adams, Elizabeth Monroe, Dolley Madison, and Anna Harrison. These coin designs are also being used on national bronze medals that are authorized only by Congress. They are given to people and places that have had very large roles in shaping our system of government.

Each one has all the information that describes the nature of the coin's printing on them. You can find the type of gold that is used, the face value of the coin itself, the amount of gold used along with common inscriptions such as "United States of America" and "In God We Trust." The coins also have inscriptions of "Liberty" and "E Pluribus Unum." These additions are focused exclusively on the first spouses. The first spouses are portrayed in a light that shows how important their roles were in forming their husband's presidency.

Many, if not all of the women portrayed, had significant and important roles in producing the success of their husbands. Most of them gave direct support in the office affairs. One, Elizabeth Monroe, is portrayed on the coin commemorating the reopening of the White House after it was burned down by the British. She played a key role in refurbishing the new White House. - 23210

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If you enjoyed this article, then find out more information on the Martha Washington First Spouse Coin and the Dolley Madison First Spouse Coin from the United States Mint.