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With gold breaking the $1,000 barrier, silver riding at a ten-year high and precious metals up across the board, the question has to be asked – is it now time to sell platinum?

Between 1992 and 1999, platinum languished around the 0 per ounce mark but with the advent of the new millennium, platinum commenced its inexorable rise, initially due to demand in the electronics sector we all wanted to get in on the internet bubble which in turn fuelled PC and laptop demand, and as that bubble burst in 2001, so did the price of platinum. Economic performance was looking scary and from the 0 level in the beginning of 2001, platinum peaked at almost ,200 in 2008 but fell back to 0 by the end of the year - after Obama’s election and the 0 billion stimulus plan from the US alone was promised.

This led to the drop in platinum prices seen in the early days of 2009 - such a capital injection from the taxpayer was rare and taxpayers around the world were finding more an more money being pumped into the global economy. He initial reaction of metal speculators, particularly those looking at platinum and precious metals as a safe haven in the very harsh economy, suddenly saw some light at the end of the tunnel – demand for platinum dropped and dropped like the proverbial rock.

Since this platinum crash, the spot price has steadily recovered to where it is now (September 2009) trading at around the $1,250 mark – a far cry from the dizzying heights of $2,200 but nevertheless a remarkable recovery from the low of $800.

The burning issue is whether the price is going to recover further – and that really depends on your view as to whether the economy is going to turn the corner and recovery commences or not. It will depend on stock and bond market peformance - if they recover, the professional investor will drop his precious metal holdings and liquidate to invest in order to take advantage of the market recovery. A close eye needs to be kept on earnings and profit performances and especially whether they are coming at the level of, or better than analyst expectations.

A good guide is the hedge fund market – where many have laid the blame for the current economic malaise. For the year to date, the KDY-index has returned in excess of 17% from the basket of hedge funds it tracks – that’s good news for those looking for super-bonuses and for those looking for recovery.

It is very bad news for those looking for future platinum value increases and signals that the time to sell has definitely arrived – for further proof, look at how the value of platinum has hit a plateau and is rebounding off the ,200 price ceiling – speculators and traders simply don’t know which way they should be going and are waiting and watching to see what will happen next – the current round of earnings results in Wall Street are primarily positive.

Platinum is not going higher – sell.

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Although the raw data of the Financial Statement has some useful information, much more can be understood about the value of a share by applying a variety of tools to the financial data.

Earnings per Share
The overall earnings of a company is not in itself a useful indicator of a stock’s worth. Low earnings coupled with low outstanding shares can be more valuable than high earnings with a high number of outstanding shares. Earnings per share is much more useful information than earnings by itself. Earnings per share (EPS) is calculated by dividing the net earnings by the number of outstanding shares. For example: ABC company had net earnings of $1 million and 100,000 outstanding shares for an EPS of 10 (1,000,000 / 100,000 = 10). This information is useful for comparing two companies in a certain industry but should not be the deciding factor when choosing stocks.

Price to Earning Ratio
The Price to Earning Ratio (P/E) shows the relationship between stock price and company earnings. It is calculated by dividing the share price by the Earnings per Share. In our example above of ABC company the EPS is 10 so if it has a price per share of $50 the P/E is 5 (50 / 10 = 5). The P/E tells you how much investors are willing to pay for that particular company’s earnings. P/E’s can be read in a variety of ways. A high P/E could mean that the company is overpriced or it could mean that investors expect the company to continue to grow and generate profits. A low P/E could mean that investors are wary of the company or it could indicate a company that most investors have overlooked.

Either way, further analysis is needed to determine the true value of a particular stock.

Price to Sales Ratio
When a company has no earnings, there are other tools available to help investors judge its worth. New companies in particular often have no earnings, but that does not mean they are bad investments. The Price to Sales ratio (P/S) is a useful tool for judging new companies. It is calculated by dividing the market cap (share price times number of outstanding shares) by total revenues. An alternate method is to divide current share price by sales per share. P/S indicates the value the market places on sales. The lower the P/S the better the value.  

Price to Book Ratio
Book value is determined by subtracting liabilities from assets. The value of a growing company will always be more than book value because of the potential for future revenue. The price to book ratio (P/B) is the value the market places on the book value of the company. It is calculated by dividing the current price per share by the book value per share (book value / number of outstanding shares). Companies with a low P/B are good value and are often sought after by long term investors who see the potential of such companies.

Dividend Yield
Some investors are looking for shares that can maximize dividend income. Dividend yield is useful for determining the percentage return a company pays in the form of dividends. It is calculated by dividing the annual dividend per share by the stock’s price per share. Usually it is the older, well-established companies that pay a higher percentage, and these companies also usually have a more consistent dividend history than younger companies.

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Whereas stocks give investors part ownership of a company, bonds are loans made by investors to corporations or governments. Rather than benefiting from company profits the way that stock holders do, bond holders receive a fixed rate of return - a percentage of the bond’s original offering price. The return is called the ‘coupon rate’. Bonds have a maturity date at which time the principal amount is returned. Bonds can be issued for any period of time - some take up to 30 years to mature.

Bonds always carry the risk that the principal amount may not be paid back. Companies with higher credit worthiness are more likely to be safe investments but their coupon rate will be lower than companies with lower credit ratings. Credit ratings are provided by firms such as Standard and Poor and Moody’s Investor Service. Credit ratings range from a high AAA to a low D.

US government bonds are considered to be the safest type of bonds. Blue chip corporations (those with established performance records that span over many decades) are also very safe bond investments. Smaller corporations have a greater risk of defaulting on their bonds, but bond-holders are preferential creditors and will get compensated before stock holders in the event that the business goes bankrupt.

Bonds can be bought and sold on the open market. Their value fluctuates according to the level of interest rates in the general economy. For example, if you hold a $1000 bond that pays 5% per year in interest you can sell the bond at higher than face value as long as interest rates are below 5%. If they rise above 5%, your bond can still be sold but usually at less than face value. This is because investors are able to get a higher interest rate than what your bond pays so in order to offset the difference your bond has to be sold at a lower cost.

Most bonds are traded in the Over-The-Counter (OTC) market which is made up of banks and security firms. Some corporate bonds are also listed on share exchanges and may be bought through stock brokers. New issues of bonds are usually sold in $5000 increments while bonds bought and sold after the initial issues are quoted in increments of $100. A bond that is listed at 96 is selling for $96 per $100 face value.

Shares or Bonds

When deciding whether to invest in stocks or bonds, the risks versus the potentials have to be weighed. stocks have much greater potential to increase in value but they are also more subject to market fluctuations. Investment grade bonds (those with a rating of BBB or better) carry less risk but offer a relatively low yield.

Most investors agree that for the short term, bonds offer greater security and return. The situation changes, however, when time spans of longer than 10 years are considered. The stock market has consistently outperformed bond investments by a large factor. This is because companies continue to increase in value and any short term fluctuations in the share market are smoothed out over time.

Bonds still have their place in most portfolios, however. They provide a stable investment which helps to cushion against stock market fluctuation. A mixture of investments including stocks from various industries, bonds and other fixed-income investments is the way to provide maximum growth while securing your investment funds for the future.

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Is it possible to trade trend to make money. The brief solution is yeah, yet there are several things to think about prior to quitting your regular job.

You must first determine how you define a ” making a living”. Some people might be happy making ,000 a year but others will want to make millions of dollars.

Another consideration is how much of your money you should invest. You will make more money, if you invest more money. Therefore, the more you will make every year.

All investments involve risk, so you have to be willing to lose it all. Try to make money, although everybody can’t.

Another thing to think about is how much time you want to take tracking trends and figuring out how to find good entry and exit points. If you are new, you might have to go to seminars, read books, speak with fellow investors, or locate other information sources. You’re more likely to succeed if you know more, as with anything.

Recent software has enabled those with minimal experience to follow the trends and make good trading decisions. However, the software takes money to purchase and time to figure out. There’s one more thing for you to think about.

You won’t have to quit your day job in order to start trading the money that you want to invest. Monitoring every hour is not needed as this isn’t day-trading.

When following trends, we may hold a position for months to years. The position on the standard is apprehended for 3 to 6 months.

Trading successfully takes time but you need not sit 24 hours a day in front of a computer screen. It is possible to monitor your trades i  under an hour a day; many that are quite successful do just that.

So, it does not interrupt their job or spare time activities. Trades can be made pretty much anywhere with today’s technology.

In your lifetime, the activity that will provide you the most stimulation is definitely not Trend Trading. As a matter of fact, the most successful investors don’t bring their feelings into it. It may be nerve-wracking to keep track of peaks and valleys everyday.

You can identify the length of time to hold a position without selling it. It’s okay if you still need your day job. Trend trading is not a full time job.

For more please see www.etftrendtrading.com and trend trading.

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Penny stocks are low-priced stocks - usually with a value of less than $5 - of small companies. These stocks are traded on the Over-The-Counter-Bulletin-Board (OTCBB) and the Pink Sheets. Both these trading venues do not have the same kind of minimum requirements of exchanges such as Nasdaq or the NYSE set by the Securities and Exchange Commission. Companies which issue penny stocks may be new businesses or close to bankruptcy. A new issue of stocks could be a way to inject quick capital to try to save the business.

All of these factors - low price, lack of standards, and lack of stability - make penny shares one of the riskiest investments around. It is true that if a company succeeds the payoff will be great, but the vast majority of penny stocks end in bankruptcy. Other reasons why penny stocks are risky include…

- Lack of information about the company. Companies listed in the Pink Sheets or the OTCBB do not have to issue financial statements. Most companies also have little reportable history.

- Low liquidity. Penny shares are infrequently traded, so finding a buyer may be difficult. The price may have to     lowered substantially to interest someone in buying the stock.

- Potential fraud. Due to their unregulated nature, penny stocks are often used by con artists who sell them through     spam email or off-shore brokers.

So penny stocks are risky but are there any benefits to them?

Not all penny stocks are frauds or companies facing bankruptcy. Some represent hard-working businesses that are struggling to meet the requirements to get listed on Nasdaq or the NYSE. Investing in these companies offers real growth potential - you have the opportunity to get in at the ground floor and ride all the way to the top.

The difficulty is finding which companies have this growth potential. Getting this information requires a lot of research and unless you are willing to take the time to personally investigate a company, you may again be the victim of fraud.  Some companies specialize in offering ‘inside information’ about companies selling penny stock, but they may simply be fronts for pushing a particular stock on unsuspecting investors.

There are two ways to play the penny stocks - do research or play craps. The low cost of these stocks means that you will not lose a lot money if the company goes under, and as long as you are prepared to lose this money penny shares can be an interesting and fun addition to any portfolio. It must be stressed, however, that penny stocks should only make up a small portion of any portfolio. The odds are that most penny stocks will end up in a total loss.

If you would like to buy penny stocks you need to find a broker that will place an order for you. Many brokers will not cover them because of the difficulties in tracking them, but some online brokers specialize in penny stocks. Regulations require brokers to receive written confirmation from the client concerning the transaction. The broker is also required to give the client a document outlining the risks of speculating with penny stocks.

Finally, the broker must disclose the current market price of the stock and the amount of compensation the firm receives for the trade. Monthly statements must be sent to the client detailing market value of each penny stock in the account.

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Stock indexes are a statistical average of a particular share exchange or sector. Indexes are composed of stocks which have something in common - they are all part of the same exchange; they are part of the same industry; or they represent companies of a certain size or location.

There are many different share indexes, the most common in the United States being the Dow Jones Industrial Average, the NYSE Composite index, and the S&P 500 Composite stock Price Index. share indexes give an overall perspective about the economic health of a particular industry or stock exchange.

There are several different ways to calculate indexes. An index based solely on the price of shares is called a ‘price weighted index’. This type of index does not take into consideration the importance of any particular stock or the size of the company. An index which is ‘market value weighted’, on the other hand, takes into account the size of the companies. That way, price shifts of small companies have less influence than those of larger companies. Another type of index is the ‘market-share weighted’ index.  This type of index is based on the number of shares rather than their total value.

Index Funds

As well as giving an overall grade to a particular economy, indexes can also be an investment instrument. Mutual funds based on indexes are known as ‘passively managed mutual funds’ and have been shown to consistently outperform managed funds. Mutual funds based on an index simply duplicate the holdings where the index is based on. Thus if the Dow Jones rises by 1% the fund based on the Dow Jones also rises by the same amount. This has the advantage of lower costs for research and transactions - savings that can be passed on to the investor who participates in these funds.

The Big Indexes

The Dow Jones Industrial Average is one of the best-known indexes in the United States. It follows the share movements of 30 of the most influential companies in America including General Electric, Coca Cola and General Motors. It is a ‘price-weighted average’ index - thus giving more influence to more expensive stocks. Some analysts feel that the price-weighting does not give an accurate picture of share market movements and that 30 companies are not enough to form an accurate assessment.

The S&P 500 Index is based on 500 United States corporations. These companies are carefully chosen to represent a broad slice of economic activity. It is second in influence after the Dow Jones and is felt to be an accurate predictor of the state of the United States economy.

Outside of the United States the most influential index is the FTSE 100 Index.  This is based on 100 of the largest companies listed on the London stock Exchange. It is an indicator of the British economy and is one of the biggest indexes in Europe. Other important non-US indexes are the CAC 40 from France and the Nikkei 225 from Japan.

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The investor has many tools at hand when making decisions about which shares to buy. One of the most useful of these is fundamental analysis - examining key ratios which show the worth of a share and how a company is performing.

The goal of fundamental analysis is to determine how much money a company is making and what kind of earnings can be expected in the future. Although future earnings are always subject to interpretation, a good earning history creates confidence among investors. stock prices increase and dividends may also be paid out.  

Companies are required to report earnings on a regular basis and stock market analysts examine these figures to determine if a company is meeting its expected growth. If not, there is usually a downturn in the share’s price.  

There are many tools available to help determine a company’s earnings and its value on the stock market. Most of them rely on the financial statements provided by the company. Further fundamental analysis can be done to reveal details about the value of a company including its competitive advantages and the ratio of ownership between management and outside investors.

Financial Statements
Every publicly traded company must publish regular financial statements. These statements are available in printed form or on the Internet. All statements must include an income statement, a balance sheet, an auditor’s report, a statement of cash flow, a description of the business activities and the expected revenue for the coming year.

Auditor’s Report
The auditor’s report is one of the most important sections of the financial statement. The auditor is an independent Certified Public Accountant firm which examines the company’s financial activities to determine if the financial statement is an accurate description of the earnings. The auditor’s report contains the opinion of the auditor concerning the accuracy of the financial statement. A financial statement without an independent auditor’s report is essentially worthless because it could contain misleading or inaccurate information. An auditor’s report, although not a guarantee of accuracy, at least provides credibility to the financial statement.

Balance Sheet
Another important section of the financial statement is the balance sheet. This is a ’snapshot’ as it were, of the financial condition of the company at a single point in time. The balance sheet shows the relationship between assets (cash, property and equipment), liabilities (debt) and equity (retained earnings and stock).

Income Statement
The income statement shows information about the revenue, net income, and earnings per share over a period of time. The top line of the income statement shows the amount of income generated by sales, underneath which the costs incurred in doing business are deducted. The bottom line show the net income (or loss) and the income per share.

Cash Flow
The statement of cash flow is similar to the income statement - it provides a picture of a company’s performance over time. The cash flow statement, however, does not use accounting procedures such as depreciation - it is simply an indicator of how a company handles income and expenses. A statement of cash flow shows incoming and outgoing cash from sales, investments, and financing. It is a good indicator about how the company is run on a day-to-day basis, how it handles creditors and from where it receives growth capital.

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Could we make out anything about rising prices?

No, not really. Inflation is about as decided as dying & taxations. It’s merely part of life-time. The economic system shall always have great & tough cycles. Many times will be gratifying for occupation & you can produce more for bad. Few years will be poor & you would be simply hardly living on.

Also indemnity & inflation shelter helps keep stride with the exaggerated tolls of wellness care servings. Simply stated, inflation entails that wares or servicing shall cost more such in the time to come than they cause today. Many Another prices raise slow, some develop speedier than others. But insurance policy and inflation security is expensive at present & tolls should almost for sure boost in the forthcoming months.

When you are considering the leverage of long term care indemnity for your-self or a household member, it is extremely significant to reckon intimately at how rising prices could impact your future day. Without inflation protective covering in your long-lasting care insurance policy, you could witness yourself with welfares that commit merely a small component of the actual costs of your forthcoming long-range care.

If the proper time ever occurs when you necessitate attention in your family or in a long-term care facility, you require to hold trusted that the insurance policy would compensate most of your disbursals. If you buy  an insurance policy without rising prices protective cover and use it twenty years from present, you would necessitate to bear the remainder ‘tween what the policy gives, which is settled on prices years originally, and the up-to-date cost of aid. That is since the insurance policy benefits shall not have continued up with the developing prices of functions.

The essential thing is to not only pull round but learn how to expand. You involve to prepare yourself about inflation protection and hold counsel from professionals and determine how to work up riches so that unstable times can ne’er again hold a holding on your standard of living.

The last few years have seen the emergence of a new generation savings accounts that offer unprecedented flexibility and competitive interest rates to investors - online savings account products.

What exactly are online savings accounts? Put simply, they are savings accounts with high interest rates that can only be managed online with no direct branch access. This saves the banks a lot of money in staffing costs and other overheads, so they can offer competitive interest rates and increased flexibility. In this article we focus on the chief benefits of online savings accounts.

Flexibility

Many standard high rate savings account products place all kinds of restrictions on what you can do with your money. Many demand minimum deposits, limit access to your funds and require frequent deposits. Typically online savings accounts are very flexible and many have no restrictions or penalties on accessing your funds when you want.

High interest rates

The other big benefits of online savings accounts is high interest rates and this is a good place to start when comparing products. In current times most of the banks are competing to boost their deposits so you will have lots of options to choose from.

Security

All reputable online savings accounts will be FDIC insured. It should be displayed clearly on the application or promotional page for the account on the banks website but you can do a check on the FDIC website to double check your investment is totally secure.

One concern with anything financial online is online fraud. Online banking access from all the major banks use first class encryption and security measures to ensure your information can’t be intercepted on route between your computer and the bank. You will need to ensure you keep your details such as log-in ID and passwords safe as always.

Convenience

High street banking is quickly becoming a thing of the past. A good online savings account will allow you to everything you need from the comfort of your home at any hour of the day. If possible the accounts should make it possible to make free transfers in and out of the account to any other bank account of your choice. Do a good comparison of what is on offer to find a savings account online that meets your requirements.

Saving goals

Online savings accounts, or indeed any saving accounts, offer the distinct advantage of keeping your savings separate from the rest of your finances. Ideally, you should deposit what you want to save each week or month and leave your money grow. Keeping your savings in a seperate online account helps to avoid the temptation of spending the money first.

So it can be seen that online savings accounts are a new departure in banking that offer distinct advantages over standard savings accounts. Here are some of things to look out for when choosing the right account for you. Be careful of any fees such as fees for set up, monthly account fees, transfers and so on. Also, many online savings accounts do not cater for ATM withdrawals, so you may not have immediate access to funds.

However, online savings accounts are designed for investing, and with high interest rates and good flexibility their benefits far outweigh their drawbacks.

Article by Richard of the Click4Group - the group run a network of finance comparison sites comparing products including Direct Saver account.

When it comes to savings and investments the name of the game is getting a good return on your money. There are countless savings and investment options out there, but if you are looking for a secure place to put your money with a reasonable rate of return, a high yield savings account is probably the choice for you.

The main advantage of high interest savings account products, as opposed to standard checking accounts, is that they offer a considerably higher Annual Percentage Yield (APY), so your investment will grow much faster.

High yield savings accounts are ideal for people who have set themselves long-term savings goals, such as saving for the deposit on a new home, a car or even retirement. In addition, the longer you can leave your money in the account and the more you can invest, the more you will see it grow.

However, high interest savings accounts do not come without a price, and that price is flexibility. Often the highest rates on offer may come with restrictions or conditions.

Here are some of the most common restrictions you will find on high yield savings accounts:

* You may be required to make an minimum initial investment and/or lodge a certain amount to the account every month;
* You may have to keep the balance over a certain figure over a certain length of time;
* Limited withdrawals or withdrawal penalties on account.

Not all high interest accounts impose all these conditions; some have almost no restrictions while others have only a few. Also be aware that if you break the terms and conditions you may not be paid interest on your investment or you may have to pay fees or charges.

So it is essential that you have a clear idea of what you need before settling on a high yield savings account. If you need a lot of flexibility with your account that is fine. You may have to settle for a lower interest rate, but it should still be better than a standard checking account.

Ideally, you will be in a position to deposit an initial lump sum, deposit more each month and leave your investment untouched for at least a couple of years. This way you can avail of the best offers and really watch your money grow.

When reviewing the offers on the marketplace it can be seen the best offers are typically found online. Many of the big high street banks offer the best rates with their online high interest accounts while maintaining a good deal of flexibility.

This is a competitive market in recent times so you should be able to find a good product for you. Look for a good high yield savings account that suits you that charges no transaction fees or set-up charges. You shouldn’t need to have your everyday banking account with the bank you choose to save with. You should be able to transfer from any account into your savings account, online and free of charge. Finally, ensure that your deposits are FDIC insured.

Don’t get caught out by intro rates that only last a few months and then drop off to a rate well below the market leading rates. Some accounts have tiered interest rates so you earn more as your balance increases.

This knowledge will put you in good shape for researching the offers available to you. Take some time to explore the options to find the right high yield savings account for you.

Tips from Richard at the Click4Group network.com.au which compares products including St.George savings to help consumers make an informed decision.