Invest in Silver To Protect Yourself Against Inflation

If you have been considering investing in silver as a hedge against inflation and uncertainty here are a couple of ways to do so.

In the 1960's our government phased out silver as money. Now our monetary system is purely a "fiat currency" which means that it is worth in theory at least what the government decides it is worth and that the government can make more of it at the stroke of a pen.
Silver and gold are considered a safe haven during inflationary periods such as we are having now.

There are a couple of ways you can add silver to your portfolio.
This first is to buy shares of physical silver through an exchange traded fund such as iShares Silver Trust. You can buy one share or a hundred, symbol SLV, through a discount broker and also in our Roth or Traditional IRA's. Your share of silver sits in a vault somewhere.

For those not comfortable with letting someone else hold their silver you can buy silver bullion outright from companies such as the American Precious Metals Exchange or APMEX. Shipping will eat up some of your investment on smaller orders but if you order larger quantities the flat rate shipping is a bargain. You can buy old US coins, which are up to 90% silver for a price close to the spot value of silver.
You can also buy APMEX or other manufacturers .999 silver bars and rounds (silver dollar size) for slightly more.

Other ways of buying silver are "junk" silver which may be sterling silver medallions, commemorative coins, etc. This can be a value but also more difficult to sell. Bags of silver coins and rolls as well as ten ounce bars are easy sell back to companies such as APMEX.
Silver is a good investment because it has value as an industrial metal as well as a precious metal. Silver is used in the production of film, x-ray film, mirrors, electronics, solder and more and the physical supply of silver left in the ground will only last around forty years at current mining rates according to figures from the US Geological Society.

Invest in Indian Stock Market (SENSEX or NIFTY)

With US stock market underperforming the global markets over the last few years, it is a good idea to diversify your investment internationally. Emerging markets have been turning in impressive returns over the recent past, especially the BRIC countries (Brazil, Russia, Indian and China). While they are not immune to US economic woes, their fundamentals remain strong into the foreseeable future. Indian economy is booming and here is how you can easily take advantage.

Buy Indian stock market tracking ETFs.
For instance, PowerShares India Portfolio ETF (PIN) or iPath MSCI India Index ETN offers an easy way to participate. You can buy and sell them just like you would any other stock.

Buy mutual funds focused on Indian companies.
For instance Matthews India Fund (MINDX), Eaton Vance Greater India (ETGIX), JP Morgan India (JIDAX) and the EM Capital India Gateway (EMINX). Note: the latter three funds charge front-end loads ranging from 5% to 5.75%. There are also closed-end funds like the India Fund (IFN).

Buy Indian stocks.
If you are able to research companies listed in other markets, you have couple of ways to buy their stocks. You can either open trading account in the market of your choice (your broker might support this already (Tip: pay attention to transaction fees) or you can look for ADRs of foreign companies which are listed in NYSE (such as INFY).

Buy US stocks that are diversified internationally.
There is nothing wrong with sticking with the US companies that you know and trust but keep in mind that companies that have business abroad would likely give you better return on investment due to better growth prospects and favorable currency exchange rates. Think of Coke, Pepsi, Procter & Gamble, Phillip Morris etc.

How to Invest In Gold As Protection Against Inflation

Gold is one way to protect yourself from inflation. There are a couple of ways to own gold. Here is how to get started.

Since January of 1975 is has been legal for US citizens to own gold. You may buy gold direct from a coin or precious metals dealer or invest in shares of physical gold that are held in trust in a vault for you.

The SPDR Gold Trust, symbol GLD is an exchange traded fund. In other words you can buy one share our a hundred from one trading fee through a discount broker. The price of one share of GLD is roughly equal to one tenth of one ounce of gold plus a small management fee.
Buying shares of GLD allows you to own gold without the hassles of storage, security and shipping.

Another way to buy gold is through a reputable precious metals dealer such as the American Precious Metals Exchange or APMEX. Through these dealers you can buy generic gold bullion at prices just above market spot price. You can find gold bars in sized from one tenth to one ounce and up as well as minted gold coins such as Canadian Maple Leafs which have a very pure gold content.

Other forms of gold ownership include buying coins that have numismatic or coin collecting value. Old US gold eagles can be worth up to several thousand dollars depending on condition and year of coinage.
Both forms of gold ownership have their own advantages.
Gold can be owned in an IRA in both physical form, stored by a trust company in a vault for you, or in the form of shares of a fund such as GLD.

Invest in Global Microfinance

Microfinance is the provision of small loans to the working poor in developing countries to help them start or expand small businesses that can improve their families’ living conditions. Borrowers use some of their profits to repay the loans. Ninety percent of this loan money is currently provided through public funding, but commercial investment is a growing trend. Right now, there are three ways for individuals to participate. You can invest directly in one of the fledgling microfinance funds, but almost all of them have a minimum investment of $50,000. You can invest online through Kiva.org. Here, you can loan as little as $25 directly to a borrower. The repayment rate is about 99.72 percent, but you do not earn interest. The newest option is to invest online through MicroPlace.com, an eBay company. Minimum investments are low. And with the support of its parent company, MicroPlace was able to jump the elaborate hoops required to become a licensed broker dealer through the Securities and Exchange Commission, so these investments do earn a return.

Go to the MicroPlace website, and choose a region and county to invest in. You can select from Southeast Asia, South Asia, Latin America, Eurasia and Africa. Countries will continue to be added as participation by both lenders and investors grows.

Read the summaries of the funds offered for investment in your chosen country. Or you can look at all of the offerings. The summaries include the fund’s mission and terms of investment--annual interest rate, maturity, last date to invest and name of the security issuer.

Click on pictures of individual borrowers, and read their stories. This will show you how your money will actually be put to work.

Click on the fund’s name for more information. There’s a lot here, including more about the mission, the fund issuer and recent borrowers. Scroll down to find facts such as the borrower repayment rate, total loan portfolio, number of active borrowers, average loan per borrower and percentage of women borrowers. There are links to lenders’ websites and financial reports, as well as to a PDF of the fund’s prospectus.

Choose an amount and click the ‘Invest’ button. The minimum initial investment is $100. Subsequent investments can be as low as $50. In developing nations, these amounts can make a difference to someone who’s trying to improve her life.

Invest in Collectibles

The term "collectible" is used in investing to mean any object that does not have a cash flow determining its market value, instead moving up or down in price based wholly on what buyers are willing to pay for it. Traditional collectibles include art, fine wines and rare books, but today, people also invest in a broad range of pop culture items such as toys, games, collectible cards and sports memorabilia.

Get involved in an area of collectibles trading that you're personally interested in. If you're a connoisseur of fine wines, the wine trade might be right for you. If you're an avid baseball fan, getting involved in the trade and sale of baseball cards and memorabilia makes a better choice.

Head to your local hobby shop as well as your bookstore to arm yourself with some reading to do for homework. You'll have to learn all you can about how to invest in the particular collectibles you're interested in, as well as what's currently hot (and cold) in the marketplace.

Make absolutely certain you have a thorough understanding of how to assess a particular collectible's value before you start to buy and sell. Be able to distinguish release dates, condition (poor, fine, good, near-mint, mint), any characteristic markings and indicators of a collectible's rarity.

Know what buyers are looking for. Have an idea of the condition the collectible must be in to fetch a good sale price. Remember that collectibles in poorer condition are valued significantly lower than comparable items in near-mint or mint condition.

Join online discussion forums to link to other enthusiasts in your line of collectibles trading. It's not a bad idea just to lurk and listen to what folks are talking about and what they're looking for. Remember: it's not what collectors have, but what they wish they had.

Keep your eyes open at garage sales and swap meets. Both can be excellent sources of valuable collectibles, frequently at bargain prices.

Learn how to restore collectibles in poorer condition to near-mint or mint condition. You'll find a wealth of information online, depending on the particular collectibles you're interested in. Do a cost analysis to see if it's worth your time (and money) to invest in increasing a collectible's value.

Observe good online auction etiquette at all times if you're planning to sell your collectibles using a popular website such as eBay. Make sure that you disclose every known flaw your item has, and include a photograph. If you get flagged by other users for failing to tell all you know about your item (even if it was an honest mistake), you'll have a much harder time selling your merchandise.

Invest in Brazil's Stock Market

With US stock market underperforming the global markets over the last few years, it is a good idea to diversify your investment internationally. Emerging markets have been turning in impressive returns over the recent past, especially the BRIC countries (Brazil, Russia, Indian and China). While they are not immune to US economic woes, their fundamentals remain strong into the foreseeable future. Brazil’s economy is booming and here is how you can easily take advantage.

Buy Brazil stock market tracking ETFs.
For instance, iShares MSCI Brazil (EWZ) offers an easy way to participate. You can buy and sell them just like you would any other stock.

Buy mutual funds focused on Brazil companies.
For instance Fidelity’s Latin American Fund (FLATX).

Buy Brazil stocks.
If you are able to research companies listed in other markets, you have couple of ways to buy their stocks. You can either open trading account in the market of your choice (your broker might support this already (Tip: pay attention to transaction fees) or you can look for ADRs of foreign companies which are listed in NYSE (such as PBR, BTM).

Buy US stocks that are diversified internationally.
There is nothing wrong with sticking with the US companies that you know and trust but keep in mind that companies that have business abroad would likely give you better return on investment due to better growth prospects and favorable currency exchange rates. Think of Coke, Pepsi, Procter & Gamble, Phillip Morris etc.

Invest for Your Children's College

One of the biggest expenses you'll face is paying for your children's college. College is expensive enough if you have one child, but having more than one can be extraordinarily expensive. One way to help pay for your children's college is to invest smartly now so that you'll have the finances you need when they graduate high school.

Choose an aggressive mutual fund, preferably one that shows consistent returns of 12 percent or more in interest. These will often produce the best long-term financial gains for your investment.

Explore the possibility of a diverse portfolio. Something many parents should consider is spreading their investments over a large group of securities, including stocks, bonds, mutual funds and even forex (foreign exchange) trading. This is often the best way to earn enough income on your investment to cover a good chunk of the costs associated of college.

Invest in the Coverdell Education Savings Account. While the accounts are limited to only $2,000 per year in tax-free contributions, over the long term, this can easily cover the cost of an education at many great colleges.

Invest early, ideally as soon as your children are born, or even before. This gives your investments the benefit of long-term performance, which often has higher yields, even for low-risk investments like mutual funds or CDs (certificates of deposit).

Invest in a 529 Education Savings Account, which, much like the Coverdell account, permits owners to invest in their children's education in a tax-free account. A 529 doesn't have a maximum contribution limit, which makes it easier for account holders to invest however much they want, whenever they want.

Invest for the Short Term

When you invest in the short term, you goal is to earn maximum interest in the shortest amount of time possible. Many of those who seek to invest in the short term are willing to take big risks with some of their capital, but others simply are trying their hand at earning what they can in a hurry. Often very volatile, but never lacking excitement, short-term investments can be a great way to get what you want right now.

Expect to set aside more capital up front than you would if you were investing in the long term. This offsets the abbreviated time you are permitting your investment to mature. This is truer for lower risk investments like high-rated stocks or 1-year CDs (certificates of deposit).

Find mutual funds with yields over 12 percent. These funds, while risky as short-term investments, are most often able to ensure a higher rate of return and might offer you a better chance to meet your immediate goals.

Invest in short-term bonds. Several short-term bonds can be invested in for a only a year or two. Yields on such bonds are often around 3 percent, however, so in order to see higher yields, you'll need to secure more startup capital.

Invest in real estate. This is far more difficult than simple investing, because you'll need to procure a lot more starting capital, but increasing a home's value and rapidly reselling it (called "flipping") can produce prodigious returns.

Consider investing in a loan participation fund. Loan participation funds offer a tremendous rate of return, but they are among the most volatile. A loan participation fund is basically defined as any investment you make in a company that is trying to use the funds to repay a previous debt. The threat of a default is high, but most investors recover 75 percent or more of their investment when a debtor defaults.

Invest for the Long Term

Investing is one of the best and most important ways you can save money for the future. When you invest for the long term, you are giving your money the time it needs to work for you behind the scenes until you're ready to start cashing in on your accomplishments. Many financial experts also believe long-term investing is a much safer way to increase your gains than short-term investing.

Invest in bonds. Bonds are largely considered one of the safest forms of investment, and they take 20 years or more to mature. The interest rates for bonds are much lower than what you would get from mutual funds or stable stocks, but you can still make solid gains on your investments with them.

Choose mutual funds with a higher yield. High-yield mutual funds often perform better in the long term, with rates of return commonly above 10 percent.

Invest in stocks from stable companies that show continual growth from year to year. Many of the world's larger companies, like AT&T, Microsoft and Texaco, have continually displayed a dependable rate of return from year to year, even if there are times when the stocks suffer setbacks.

Invest in an IRA. IRAs (individual retirement accounts) have terrific tax incentives and enable owners to invest in their futures at an early age. There are often penalties for withdrawing on an IRA prior to maturation, but each type of IRA has different restrictions.

Save your money in a savings account with a high interest rate. Some banks offer savings accounts with interest rates of over 4 percent, making it possible to safely earn interest on your investment without losing money.

Invest for Retirement

Your retirement should be a time of comfort and relaxation, not stress and anxiety over finances. Even if you are only just out of high school, it's a good idea to invest for retirement to get a head start and increase the amount of financial stability you'll see when the time comes for you to leave the work force. There are plenty of ways to invest for retirement, too, leaving you with lots of options.

Invest in an IRA (individual retirement account). IRAs carry a number of terrific incentives, like tax breaks or protection against bankruptcy. More importantly, you can invest in your IRA from year to year and begin to draw on it without penalty once you have reached the age of 59 1/2 years of age.

Invest in steady, dependable stocks, and leave those investments alone. Some companies, like Ford or even AT&T, have been around for decades, and they show consistent, steady growth from year to year, making them great opportunities for investments. Leaving your investments alone ensures you are giving the stocks the time they need to perform to their fullest potential.

Contribute annually or more frequently to a mutual fund. Mutual funds are among the safest long-term investment opportunities, with yields above 10 percent common. In most cases, you are able to withdraw on your mutual fund without penalty, and you can contribute to it as often as you'd like.

Buy either U.S. Treasury bonds or Agency Bonds. Treasury bonds are guaranteed, but have lower interest rates. Agency bonds (those issued by a government agency other than the Treasury) are not guaranteed, but almost always have a higher interest rate.

Nurture your 401k plan throughout your working years. While the 401k shouldn't be your only source of financial stability in the future, 401ks are a terrific way to ensure you have some financial freedom once you leave the workforce. You can even have multiple 401ks: one through your employer and one you can open yourself.