Tag Archives: Investment

Are Immediate Results From Penny Stocks Really Possible?

pennystocksOne of the major reasons why a huge percentage of Americans remain skeptical about stocks investment is the amount of time and effort that it takes for their money to grow. An average person would naturally want to get the most out of every penny they take out from their budget.

While big stocks are known to take months and even years to show results, penny stocks can already double or triple the invested money in a matter of days, or sometimes, even as instant as 24 hours! This is the secret of some people who have managed to significantly grow their little investment. This could be anyone of us, too, if we start looking into penny stocks market now.

Before that, let’s try to establish how these penny stocks work and how they differ from the more popular New York Stock Exchange.

To start off, buying penny stocks works the same way as the NYSE, which means you can buy your penny stocks shares over-the-counter, as well. This makes it really convenient even for the first-time investor. However, compared to NYSE penny stocks literally required few pennies as initial share, which the minimum requirement ranging from $1 – $10. It’s easy to assume anyone of us now have this amount to start investing. Start creating your own online trading account to participate in penny stocks exchange. The only thing left to do, after securing few bucks for your first penny stocks investment is to wait for a new company that goes public. Majority of these companies even offer their shares lower than a dollar. However, it is crucial to carefully evaluate the company you are investing on to make sure that the money does not go to waste. As a first timer in this investment scheme, we want nothing but positive results.

An important aspect in the evaluation process is to check whether the company is regulated by SEC or any other business regulating body in your country. If you get lucky with your company of choice, its share can easily explore making your initial investment three or more times bigger than it already is. If you are not yet certain on how to pick the most promising company, you may commission a broker to help you with this process.

Stock market in general has earned a mixed reception from the people, especially from Americans, who have seen how many investors fell off the track due to the poor performance of their stock shares. Even with the American economy fully recovered now, we still cannot discount the risks involved with stocks investments. It’s just that penny stocks has lesser risk, and bigger promises.

Falling Gold Price May Affect The Banks Adversely

 The falling price of the precious yellow metal is likely to cause a mixed impression upon the masses. The survey, made immediately after the gold price hit its lowest recently, reveals mixed opinions from the renowned jewelers from across the country. As per the well-known gold jewelers, the lowest price of gold may encourage the smaller of mediocre jewelers to deposit more gold with them that they can use further when the prices would go up once again.

jewelry

The situation is favorable for the people as well who are largely interested in making money through investment in gold. However, the jewelers are supposed to be the most benefited people in this situation where gold is losing its price in the International market.

As a matter of fact the cost of the rented gold is open-ended where the cost is fixed while the jewelers sell them to their customers either in the form of jewelries or in the form of gold bar. This reduces the inventory risk for the jewelers as well. This lowered risk also works as a cushion against any situation caused by the reduction of the price. As the demand of gold jewelry is likely to raise in the time to come, so the interest of the banks is likely to go down further as well.

In such a situation, the banks would have to take the policy of ‘wait and watch’. The banks that are nominated by the Reserve bank of India (RBI) would be in a situation to take the commodity risk to face the loss. At the present moment, when the price of gold is going down, the market would not be in favor of the banks. However, the situation would certainly improve and then the banks would play a vital role again.

 

 

Aluminium Industry Expects Structural Change

The aluminium industry is expecting a neutral to mildly positive change in the next three to five years. The industry will witness a significant change in the structure and this change will be the result of depressed prices and cost pressures in this field.

Based on Fitch Ratings, some aluminium producers are expected to sink, while and some new companies might emerge, especially in Middle East.

The key reasons behind these radical changes are the depressed aluminium prices, rising electricity input costs and changes in the pricing mechanism for alumina. Aluminium smelting is an energy demanding activity and producers require site smelters in low energy cost regions, such as the Middle East or in places like Iceland and Siberian
Russia (also called energy islands).

Due to the high cost of energy and low smelting returns, producers are being forced to close down their smelters. The announcement of Rio Tinto in October 2011 that it would close or sell 13 aluminium and alumina assets, is just one example.

The second factor is the push for a higher proportion of alumina to be sold on a spot/index basis, rather than on contracts. Alumina has been priced as a fairly narrow percentage (generally in the range of 11.5%-13.5%) of the more liquid and transparent aluminium prices.

It is an argument that the contract system did not reflect the true value of alumina but rather that of the end product. If alumina will price as a product in its own right, it is likely to result in more volatile, but structurally higher future prices and margins.

All these details point to the closing and shedding of Western producers and an increase in Middle Eastern producers who have a strong position in terms of energy cost. These new manufacturers may face operational risk from their lack of integration into feedstock but at the same time these new companies will add operational diversity to the industry.