May 2009

  • Numismatic Value Versus Bullion Value: A Word of Advice for Perspective Collectors and Investors

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    There are many people who collect coins and bullion together, but for the most part, at least in my experiences, collectors tend to choose one or the other.  Collecting coins and precious metals for numismatic value means that people are collecting and stacking them because they hold more than just intrinsic metal value; they have a collectible demand and value as well.  Those that just collect or invest in precious metal bullion alone are doing so not because the units of bullion have more than their intrinsic bullion value, but because they hold their value as precious metals.

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  • Silver and Green Energy

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    Obama's ambitious plan to help stem America's dependence on foreign oil and create more sustainable energy sources helps silver's case as a great investment opportunity for the next decade.  Silver has already gained 25% over the past month but will likely decline in value as the summer wears on.  But if you're looking for a great long-term investment option, silver is a great choice due to its ties with green energy technology.

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  • Questions About the Future as Silver is Poised to Hit $16 An Ounce

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    Unlike many investments, silver has actually done better in May than any other month for the past 22 years.  This leaves many people the impression that it's highly overbought at this point.  Others have just jumped into the game and are getting their hands on some fairly high priced white metal.  Whichever group you belong to, the biggest question you're likely asking yourself is, "Will silver continue its climb upward or get pared off on some profit taking?"

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  • Silver Supply Versus Demand in 2009

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    The price of silver has recently shot up as investors are flocking to precious metals as a hedge against inflation and poor economic performance, especially in the stock market.  The price of silver was in the low $11's at the beginning of the year and has climbed nearly 25 % to reach well into the $14's this week.  It's no surprise that silver tends to mirror gold's performance, which is tied to so many factors that it's often hard to discern the future direction of movement until underlying factors are unraveled.  But silver's growth potential may yet be untapped if the economic crisis that is being experienced worldwide sticks around for the rest of the year.

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  • Monarch Precious Metals: A Closer Look

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    The Monarch Precious Metals Company is a Phoenix, Oregon based silver minting company that has recently come on the scene offering some old products with new unique twists.  The have been around for only about a year, but demand for their products has begun to increase as premiums for their bullion are beginning to appear on websites like EBay and many others.

    The company allows investors to purchase silver bars ranging from 2 troy ounces to 50 troy ounces on their website.  The current premiums are between $2.50 per ounce for the smaller bars and only $0.90 per ounce over spot for the larger ones. 

    One of the reasons I prefer Monarch Precious Metal's bars is because they are poured into the traditional "loaf" style that all but disappeared from view a couple of decades ago.  In a time where numismatic interest and premiums often overshadow the silver bullion value of a product, Monarch Precious Metals has done a great job refocusing the bullion collectors and reminding them that there are bullion products out there for those of us who are not as interested in the numismatic aspect of collecting and investing.

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  • The RSI and Why It Matters

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    One of the fist things you will learn in any finance class is that the RSI, or Relative Strength Index is your friend when it comes to evaluating the stock market on the whole.  The RSI is a ratio, or comparison between the high closing value of "x" number of days and the low closing value of "x" number of days of the stock market or particular stock or index.  The RSI attempts to determine when and identify where an overbought or oversold condition exists, or more simply, when the stock market has been over inflated or is under inflated.  This information is useful to investors because it allows them a small glimpse into the mechanics of a market and can be used for just one week or compared over a large amount of time like a year or longer.

     

    While the RSI is a handy tool when it is used as a stock analysis package, it should be remembered that if a stock or index's value suddenly shifts up or down, it's tough to really use the RSI on its own to analyze the values until the measurements are allowed some time to average out over time.  That's why it's best to use the RSI as a trading tool, not an all out deciding factor.

     

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  • Fuel for the Recovery: A Closer Look at Sector-Driven Economic Growth

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    With the possible bottom of the economic crisis upon us, many economists and investors are wondering which sector or sectors will carry the US out of the recession and leap to the forefront of an economic recovery.  Guessing correctly could pay off big in the next few years and possibly for a decade or two to come.  Here's a past look at what sectors have really driven the US economy out of slowdowns and recessions in the past.

     

    In the 1950's, President Eisenhower decided to start work on a project that is still going on today, the building of the highway infrastructure.  This infrastructure has helped immensely in carrying goods and people from place to place more efficiently and effectively.  It's become a national treasure and priceless US asset.  The US highway system also paved the way (no pun intended) for the US auto industry to flourish.  People were now able to travel more cheaply and easily by car, and the idea of every family owning an automobile was born.  Unfortunately, this massive buildup of fossil-fuel burning technology also fueled the rise of the influence of oil, which is still felt today.

     

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