Investing Questions and Answers

What is a better investment gold or silver?




Answers: Silver i think is seriously undervalued at the moment. So i would say stock up on silver. Gold is closing to its peak. i cant see it going past $1000 mark really this year.
Whatever the market in real live trading data show but my money is on gold.

Swam... get off the investing tips.
silver

take the road least taken
Historically, the price ratio of gold to silver sits at 16 to 1. For example, if Gold is trading at $160, silver will be around $10. This ratio has been pretty consistent through the years.

Currently, gold is around $900 and silver is around $17. The ratio is set around 53 to 1.

It appears to me that silver has a lot more room to run than gold. I personally don't believe gold will get anywhere near what analysts predict.

I would not invest in either precious metal. I am not a fan of investing in precious metals.
that depends, I prefer Gold for longer term.

Shorter term doesn't really matter
Neither are good long term investments. They may be good trades. Copper, platinum, silver are doing best now. But over a long time, they return only about 5 percent. Look at a 20 year chart of gold and you will see this is correct. Gold generally keeps up with inflation, and during times of economic turmoil it tends to rise. However, when it comes back down, as do most precious metals, it comes down very fast and that is painful.

Invest in companies ... good companies with good management, and a fair share of international business.
both are bad investment.

to day Gold is shining because of OPEC - when they starve Gold will fall miserably.

Indians and Chinese are investing in Gold (citizen investment)
OPEC invest in Gold (as a country - as a whole)
You can open an free Marketiva forex \gold\fund\indexs online trading account , with $5 reward and $20000 virtrual fund for practice .Just click the following link to open an account.
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Shall I know the current market rates and future prices of GOLD for the coming months of 2008?




Answers: Gold should move up over the course of the year, I think 1000 is not out of the question IMO.
Check in the Wall Street Journal or U.S. Inducies on the computer.

What is simple and compound interest? How do you find it?




Answers: *Simple interest is computed by multiplying an initial investment times both the applicable interest rate and the period of time for which the money is borrowed or lent.
Assume you invest 1,000 at 6% simple interest for 3 years. You would earn $180 interest. (1,000*1.06*3)

*Compound interest includes interest not only on the initial investment but also on the accumulated interest in previous periods.
Assume we will save $1,000 for 3 years and earn 6% interest compounded annually.
What is the balance in our account at the end of three years?
Answer: $1,191.02 (SEE BELOW ON HOW I FOUND THIS ANSWER)

Each amount is added to the previous year: Like so...
1,000 * 6%= $60 (now add $60 to 1,000)
1,060 * 6%= $63.60 (add that to 1,060)
1,123.60 * 6%= 67.42 (add this amount to 1,123.60 to get your answer of $1,191.02)
it is an arthimetic formulae.
final out put (result or answer) differs based on value attributed to each factor.

for financial analysis -- calculating interest accrued first method (invention) is simple interest formala -
for micro analysis of financial performance (to find out return on investment at micro level) more components have been added to basic formula -- that is -- compound interest.

you can use excell spread sheet - use the formula and indicate value for each component - see the result - junst in few minutes you will be getting mind boggling answers -- for scientific (arthmetic also a science) curiasity - you can add components in the formula and the see the results of return on investment to the extent of seconds/minutes/ hours/days/ month/quarterly/ halfyearly/ annually like this.

you may think working like this is a mad man job - it is not so - work is like Galilio thesis.

if you get 6% return on simple interest p.a. - just apply compund interest formula for knowing the return on daily basis - the result will give you just a shock -
use excell spread sheet - just work for 10 minutes -
you will get a new opening in your financial business -

unless you try yourself - you cannot enjoy the wonders of Maths - mother of all sciences - that helps everything in walk of life.

imagine (dream) a case study --

Case (1) :
A Bank gets desposit on yearly /(6 months & one day)181 days / (3 months & 1 day - 91 days / (2 months & one day) 61 days / (one month & one day) 31 days / 16 days

Case (2) - A Saving Bank Account - where limitation of withdrawl is imposed

Case (3) - Current Account -
Transactions unlimited - means - amy amount can be deposed and any amount can be with drawn

Case (4)
A conservative Bank allocate large portion of sum for non-operation (generally called idle money - fire bucket, non interest earning cash reserves, etc.,) to meet emergency.

Case (4) A Bank (who work with caution) - keep large
in Gilt market - debt instrument (100% guaranteed by Fed.Bank (Central Bank) - that is more than statutory requirements.

Case (5)

A lazzy bank hold large deposit as non-performing asset (NPA)

Case (6) A prive Bank or a finaciar don't keep cash reserve at all - or don't put any money in debt instrument - but deploy entire sum in Financial Business (it is only for fancy imagination) and rotate the money for interst pay out on daily basis or weekly basis. (there are people who do this business)

Case (7) - A departmental Stores (like WallMart or neighbour-hood groceries Stores etc., ) don't invest on invetories at all - they get one week/15 days/monthly credits - and sell the goods on Cash delivery basis.


NOW APPLY THE ABOVE INTTEREST FORMULAE

NOW YOU CHOOSE YOUR BUSINESS LINE :

your best choice will be a Departmental stores which gives you safe and excellent return

do you know why WALLMART shines better than any one else.

ENJOY MATHS AND GET SUCCESS IN CORPORATE RESTRUING.
A simple is what you normally do with a bread and a knife except you can only slice once at a given margin rate.

A compound is what you normally do with a slicer machine and a bread which allow you to make numerous slice within a given time span.

The more the slice, the more multiple is your interest. By having the number of slice, you are multiplying depending on the percentage.

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