By financen | September 30, 2019 - 6:06 pm - Posted in Gold, Investing

Gold has always been a valuable metal and a means for measuring wealth. In the past, gold found its way in the necks of Egyptian queens and the exchanging hands of merchants. It has always been a sign of wealth, and a valuable asset to own.

Nowadays, the price of gold is dependent on its weight, and it has recently seen an upwards increase in value after a period of stagnation. Popular investment news outlets have predicted that the price of gold will continue to rise with the inflating economy.

Defining Gold as a Metal

Gold is one of the metals in the periodic table whose founder is unknown. It is a chemical element that is mostly inert, which means that it doesn’t decay or tarnish. It alloys well with other metals, so it’s easy to transform into sheets or wires.

It’s a rare element that can only be found in mines and cannot be produced artificially. South Africa used to be the world’s largest gold supplier, but now China and Australia have taken on that role.

Gold has always been a precious metal to civilization, and it remains essential in various industries today. Gold’s relevance to the modern world contributes to its steady demand, and it’s unlikely that the price of gold will severely drop soon.

The Use of Gold Today

One of the most important industries that rely on gold’s inert property is the technology category. As gold doesn’t tarnish or corrode, it finds use as a capable conductor for solid-state electronic devices. This means that gold plays a role in speeding up the transfer of information within devices. As a result, you can find small amounts of gold in almost all electronics, including phones, laptops, and GPS units.

Perhaps the most popular use of gold is in the creation of jewelry. About 78% of the world’s gold finds its way to jewelry shops and metals myths around the globe. Gold has always been a staple for jewelry-making because it doesn’t tarnish and can withstand generations of use. Therefore, it can be passed on to generations as a precious heirloom.

It’s especially prevalent in countries like India, where superstitions connected to gold motivate the purchase of jewelry. The price of gold in India also tends to be lower, as there is a massive demand for the metal even in less affluent communities.

Apart from these, gold is also widely used in the dental and aerospace fields. A trend among all these industries is that they seek gold for its physical properties. The inertness of a robust and easily alloyed metal is a unique quality of gold, making it incredibly valuable.

Should You Invest in Gold

Nowadays, a large percentage of wealth portfolios comprise of stocks and bonds. The popularity of cryptocurrency has also contributed to a shift in online investments. However, some don’t trust the lack of security in intangible investments. Therefore, these individuals have turned to gold for a sense of asset security.

As gold doesn’t involve being in a shared bond and is virtually zero interest, it maintains popularity, especially among traditional investors. Although the price of gold fluctuates, there’s current potential in investing in gold as the economy seems favorable to its inflation.

Consequently, if you’ve been thinking about it, now’s a great time to invest in gold.

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By financen | September 19, 2019 - 3:38 pm - Posted in Investing, Investment

Many great investors over the years have touted the superiority of investing in real estate. Why is that? Real estate investing,  when well executed, can be an outstanding way to grow wealth. Ask any real estate success story like Steven Taylor Landlord and they tend to offer advice with similar themes. Here are three reasons apartment buildings make a good investment. 

Cash Flow

The ability to create positive cash flow is likely the primary reason most multi-family unit investors choose to purchase apartment buildings. Cash flow is essentially what is left over after rents have been collected and expenses have been paid.

When an apartment building is purchased, there are many ways to increase cash flow. The simplest way to accomplish this increase is to raise rents.

Another way to increase cash flow is by reducing expenses. A close examination of a property can often uncover places where money can be saved. There may be utilities being paid by the property owner that could be relegated to tenants. A reduction of expenses can also be accomplished by taking a look at service providers and what they charge. Oftentimes, there may be bettor vendors available charging lower rates for services like maintenance and landscaping.

Lack of Affordable Housing

The lack of affordable housing is a common occurrence across the United States. Apartments are the most affordable option for many who can’t or choose not to purchase a home.

Resistance to Fluctuations in the Economy

Apartment building investments tend to have a resistance to fluctuations in the economy. People always need the ability to put a roof over their head. 

In good times, affordability becomes an issue for many prospective home buyers as home values increase. In bad times, apartment rentals may be the only available option for people trying to keep household expenses down.

The key to successful apartment ownership is to identify a great high-demand location.

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Anyone who is considering purchasing property to start a rental business to beef up their assets should consider working with a real estate broker Spring TX. While there are plenty of great deals to be had, there are plenty of issues that can crop up that can turn an originally savvy investor into one that regrets ever setting their sites on the market. A broker can help ensure that investors get the best deals for their money and keep them from making common mistakes that turn their “gold” into “coal.”

Do Proper Research

There are many brokers out there. Some are self-taught, industry educated and highly experienced. No matter what type of broker one is interested in, it is important to choose one that meets expectations and works well with the vibe of the client. Some people find the right broker their first time searching, however, it often takes a few meetings with several prospects before a good match is made. Look further than credentials. Education, longevity, and industry reputation are huge factors that can make or break a deal.

Take A Deeper Look

There are many properties that are diamonds in the rough. Flippers or people who are interested in renovating a property before selling it themselves or renting it out often look for properties that require little to no work. These properties are often a dime a dozen. Be prepared to research what is available in the market and to dig a little deeper than what meets the eye. Many potential gold mines are overlooked because assumptions are made instead of taking a deeper look with an inspection.

Just like with any investment, it is important to know what the pros and cons are before jumping into the water. Things may sound great from one perspective, but unless or until one has experienced the challenges firsthand, it best to look before leaping.

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Real Estate Investing

There are so many exciting and wonderful places around the world where everyone dreams to settle down for the rest of their lives. And, Dubai is among the top few of them. In fact, it’s among the best of places for property investors to invest their money and make great profits. If you talk about UAE, in general, the country offers a lot of sunshine throughout the year and has some pristine beaches, gigantic shopping malls, desert safaris, world’s tallest building Burj Khalifa, and the man-made Palm Jumeirah Island. All these attraction not just attract tourists year round but also offer great investment opportunities for the seasoned real estate investors.

If all that isn’t enough to convince you, here we have 5 compelling reasons as to why property investment in UAE is profitable. Let’s check out!

  1. Best Investment Returns Against Property Investments

The property prices in UAE are still very low and that presents a great opportunity to the investors to make for highly profitable deals. Dubai alone is home to so many fascinating places and offers some high-end amenities as well as business facilities. Modern villas investments are so lucrative in Dubai especially on Palm Jumeirah that they can’t even be comparable to those in cities like New York and London. Also, there’s a significant increase in tourists which leads to significant demand rental and residential properties. With increasing demand, the investments are surely going to offer greater returns as years go by.

  • Growing Tourism Makes For A Strong Economy
Growing Tourism Makes For A Strong Economy

With Expo 2020 just around the corner, there’s a large number of job seekers, businesses and entrepreneurs rushing to Dubai which presents a great opportunity to generate revenue from expected visitors.

During the Expo 2020, Dubai alone expects more than 20 million tourists to land here from different parts of the world. Besides, the ever increasing attractions in the city are a major source of bringing tourists here. Sources say that the contribution of tourism to GDP was around 8.4% making it almost 117.4 billion Dh being added to country’s economy. It will also help boost employment opportunities in the country with almost 369000 jobs expected by 2024 and more individuals coming to the country and settling there.

  • Free Zones For Foreigners
Free Zones For Foreigners

Foreign investors in Dubai can make the most of free zones where they do not need residency visa and you do not have to be a citizen of UAE. Such foreign investments were allowed since 1999 in the bid to boost UAE’s economy. With free zones in place, you can invest in UAE real estate with no need of permits or anything like that. There are many foreigners who invest in commercial and residential properties and then lease it out. It helps them get a great return on their investment.

  • Low Traffic
Low Traffic Real Estate

When people buy properties, whether for office or residence, they consider the flow of traffic in the area as well. UAE offers so many secluded areas where comfortable living experience can be enjoyed without having to get annoyed by all the buzz created by vehicles passing by. So, that makes one good reason for people to buy properties or rent them in UAE. And, with this increasing demand, investors certainly have a great opportunity to make profit with their real estate investments.

  • Housing Is In Demand
Real estate demand

Investments in the real estate sector, particularly in Dubai, in coming years would definitely present opportunities to turn fortunes because the country expects large influx of visitors. Furnished apartments available on shorter-term lease, inexpensive hotel apartments or commercial spaces make the best investments right now in UAE. In fact, they won’t see a decline in demand in coming years and the investment would remain safe and highly profitable.

So, all that means you can expect profitable trades and huge ROI should you invest in the real estate properties now. Better find luxury accommodations in Dubai with the help of an agency and start making profits with it.

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By financen | August 5, 2018 - 3:44 pm - Posted in Investing, Investment, Warren Buffet

I would like to share a great video with my viewers about Warren Buffet and his advice on how average people can invest and become rich. Enjoy the video and learn as much as possible to become rich.

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There are best investment strategies available in today’s market. Contributing is an advanced investment strategies starting with one year then on to the next. Those days are gone when people used to put their resources in a term store for a certain period of time before it multiplied to a certain amount.

The premium rates are continuously falling in the recent times and due to this, the investment strategies have moved more advanced. These days there are three different forms of investment strategies that can be utilized to improve your portfolio’s returns over a certain period of time.

High risk investing: This is one of the best advanced strategies in today’s market. It is quite important to stretch your investment portfolio so that non-customary sort of investments can be incorporated. Because of low ensured rates, speculators are taking risks at high danger investments.

investment strategies

Looking into securities: After the business inconveniences of 2007, 2008 and early 2009, many speculators have come back to the essentials of value contributing.  There are not just such organizations that are better promoted and can create enduring measures of money to pay those profits, yet they come up short given their administration in a specific industry or division. Nowadays, speculators are putting their resources in more robust organizations that pay wages as a major aspect of the value offerings.

Make constant contributions: Experiences and knowledge from the past has taught us that we would be better off today on the off chance that we had contributed all that we claimed at the utter bottom of the business amendment. The problem is that we are not that much prepared to focus when that bottom will happen.

InvestingTo avert from this situation, standard investment commitments, whether it is part a protuberance whole throughout the span of a 12 month period or to contribute a preset sum with each paycheck. By contributing cash all the time, even the traditional financial specialists are able to pay a normal cost for their investments. In the long run, they will have paid considerable short of what on the off chance that they had attempted to time the business sector with less incessant investment commitments.

When the time comes when you have to contribute on your own, you can utilize a rebate online intermediary. Most expenses will go down with any firm when you do the research on your own, even with the reduced representatives. When you have just started, you will want to put your money in stocks instead of the contributing procedure itself. In general, choosing the best investment strategies as per your requirements will help in building up your wealth.

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As the New Year begins, expectations in the M&A are high. There was an overall decline in activity in 2016 as compared to 2015. To most of the deal makers, it is due to the uncertainties that come with political environment. However, as the year unveils, stabilization in the new administration will dictate the market, with predictions of favors in the Mergers and Acquisition markets.

2017 Expectations in the Merger market.

2016 showed a drop in activity by a 25% decline in activity and reduction in deals. According to M. Bolsinger from Dechert; there are a lot of expectations from the new administration; running from changes in tax policies, interest rates, to other macroeconomic drivers. It is until the changes stabilize that great deals in M&A will crop. Bolsinger is also optimistic on the available opportunities in the financial sector based on the president’s elect promise to replace Dodd-Frank. From his perspective, there is uncertainty of performance in the environment and healthcare sectors.

It is also expected that M&A importance will be of significance in 2017. The US$1.7tn is the amount of money reported to be lying idle in the financial sectors, which is expected to be put in the M&A market for a significant whopping change. Also, there is the need to invest in the organic growth around the world. According to J, Packee, Baird, most investors concentrate on the inorganic investment. It is reported that dry powder stood at US$800bn in Q3 which would have been invested in the sector.

Stock Market

The first quarter of 2017 is expected to show an increasing trend in the deal activity due to the sudden drop of uncertainties from the pre-election period. According to Eurazzo, who works for an international investment company in Paris, the drop in uncertainties can be seen from the trends in the US stock market.

In addition, higher expectations in the M&A deal sector is linked to the emphasis on quality of deals in 2016 which slowed down activities. It is however expected to be different in the first and second quarters of 2017, since there is more confidence in the inventory deal as high quality deals venture the market.

Expectations in the private equity activity in 2017

It is reported that private equity activity in 2016 in North America remained strong, which is in contrast with the drop in the corporate M&A. In the first, second and third quarters of 2016, there were 781 private equity deals valued at US1bn, which is just five fewer from 786 deals in 2015. The technology, industrial and chemicals, and the business services sectors are the top three sectors that largely contributed to the private equity deals in 2016.

According to West Monroe, the last seven years have recorded such a high competition in the private equity deals. This is due to the emphasis in quality deals, speed and valuation, and availability of active strategic buyers. Also, the financial sponsors have made the private equity business easy and convenient. This is because, private equity firms assemble portfolio companies and then roll up add-ons to those companies.

However, according to Bolsinger, the high competition is due to: fewer and fewer large-cap deals; and availability of very acquisitive strategies that sit on a lot of cash while still fostering big threats to the private equities.

Eurazzo sees the long term deals between a business owner and a private equity firm much more sufficient than the short term deals. This is due to the fact that businesses take long to be more productive.

The driving force of the increase in the inbound deal value by 21% in mid-market M&A.

The inbound deal value went up by 21% to US$22.9bn in Q1-Q3 in 2016 especially from the Asia based acquirers. The Asian countries engage in M&A for various reasons such as acquiring better technology or to expand their market share.

The success of great deals in M&A is the buying of beneficial brands and investing back to the countries’ businesses to enhance them. Also, a strict state control helps in improving M&A deals as evident from the China State Council.

The challenges facing the M&A deals.

Cultural differences makes it difficult for some investors to invest and succeed in foreign areas. This is due to political and cultural differences, as well as communication barriers. However, buying a well-established business can conquer the challenges.

The expansion of private debt for M&A activity.

In 2016, the closed end private debt fund had more than US$131bn, which is the highest amount recorded ever. The increased debts according to Monroe is due to the low interest rates. Also, investors have turned up in large numbers to seek for direct lending, which proves to be more convenient rather than the traditional way of banking market.

Source: Firmex.com

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