Choosing Between Gold and Silver | Trading NRG

In recent years, many investors have added precious metals to their portfolio for various reasons including hedging in case of inflation or a sharp devaluation of the dollar against other leading currencies. Despite the strong relation between gold and silver, they haven?t performed the same. Moreover, silver and gold companies differ from one another in certain aspects. Let?s compare between silver and gold and between gold and silver companies to better understand the difference between these investments.

Gold vs. Silver ? First Round

The strong correlation between gold and silver is well known and straight forward: during the year, the linear correlation between the daily percent change of gold and silver ranged between 0.7 and 0.9, which is a very strong and positive relation.

Many believe that gold is leading this relation, because gold is a larger market than silver. A quick comparison between ETFs reveals that gold?s ETF, SPDR Gold Shares (NYSEMKT: GLD) has a much higher market cap than silver?s ETF, Shares Silver Trust (NYSEMKT: SLV): GLD?s market cap is nearly $73 billion compared to $10.5 billion for silver?s. Another comparison, between global reserves of gold and silver, shows that gold has a much higher market cap: the world official gold holding is nearly 35,000 tonnes, at a price of $1,700 per troy ounce, which comes to a market cap of $1,912 billion; global silver reserves are 530,000 tonnes, at a price of $33 per troy ounce, which comes to a market cap of $562 billion.

So we know these two metals have a strong relation and gold is most likely leading the charge in this relation. Despite these factors, during the year both precious metals have performed differently as gold rose by only 5.7% (year-to-end) while silver increased by nearly 11.3%. In the past year and a half, however, gold remained stable and slightly rose while silver tumbled down from its high levels during the first few months of 2011.

As I have showed in the past, the price of silver has a much higher standard deviation than the price of gold has. This means, the volatility of silver is much higher than that of gold.

Therefore, the price of gold seems a bit steadier than silver even though it has under-performed silver during the year.

Gold vs. Silver ? Second Round

Let?s examine two major precious metals companies: one mostly related to gold and another mostly to silver and compare their performances.

The chart below presents the average quarterly normalized prices of gold and silver (as of the second quarter of 2011) and the operating profitability of two major precious metals companies: Royal Gold (NASDAQ: RGLD) and Silver Wheaton (NYSE: SLW). These companies have different business models but are both big companies in the silver and gold industry, receptively.

In terms of operating profitability Silver Wheaton has consistently done much better than Royal Gold. Moreover, even though I didn?t add other gold producers to this comparison, such as Barrick Gold Corporation (NYSE: ABX), gold producers didn?t have a higher profitability than Silver Wheaton had.

During the year, shares of Silver Wheaton and Royal Gold have risen by very similar rates, although Silver Wheaton was more volatile than Royal Gold. Moreover, both precious metals stock have outperformed not only gold but also S&P500. The chart below presents the developments of the above-mentioned indexes.

In terms of dividends, Silver Wheaton is paying a relatively low divided: as of the past quarter the company paid $0.07 per share which comes to 0.8% annual yield; Royal Gold paid $0.2 per share, which comes to a 0.99% annual yield; Barrick? paid $0.2 per share, which is an annual yield of 2.39%.

Some final thoughts

In the comparison above between Silver Wheaton and Royal Gold we saw that Silver Wheaton has a higher profitability, pays less in terms of dividend yield. Nonetheless, both companies? stocks have increased by nearly the same rate (up to date). In this comparison between gold and silver there isn?t a clear cut answer which investment is better, it depends on the investor?s expectations, risk aversion and belief in the future progress of precious metals. I think for more conservative investors who wish to hedge against inflation and devalue of the USD, gold or gold companies might be a more suitable investment. Investors who wish to be riskier and be rewarded for it might lean toward silver and silver companies.

For further reading:

Disclaimer:?The author holds no positions in stocks mentioned and does not plan to initiate positions within 120 hours of the posting of this article. This article is to be used for educational, research and informational purposes only and does not constitute investment advice. There are no guarantees, expressed or implied, of future positive returns in regards to the subject matter contained herein. Understand the risks inherent in investing before making the decision to invest or consult an investment professional for more information. Reasonable due diligence has been performed in regards to the information in this article. However, the author expressly disclaims any liability for accidental omissions of information or errors in fact.

Tags: Gold price, Gold Producers, silver price

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Fiscal cliff talks move to Virginia family's home

WASHINGTON (Reuters) - President Barack Obama takes his "fiscal-cliff" campaign to the home of a family in Northern Virginia on Thursday to illustrate the impact of letting taxes go up on the middle class, as signs emerge that Republicans are contemplating a change in strategy in their battle with Democrats over deficit reduction.

With about three weeks remaining before steep tax hikes and budget cuts that comprise the so-called fiscal cliff are set to begin, the White House said Obama would visit the home of a family that responded to a presidential Twitter request for real-life stories about the burden of a tax increase on the middle class.

Northern Virginia is a suburban expanse across the Potomac River from the U.S. capital that includes some of the wealthiest counties in the United States as well as populous middle-class developments that have grown up over the past quarter century. Due to its proximity to the White House, the president often uses it as a setting for public relations efforts.

"A member of this family shared her story about how paying $2,200 more in taxes next year would impact them if Congress doesn't act," said a White House statement, which added that over 100,000 people responded to the Twitter request.

Obama and Democrats in Congress want the tax cuts set to expire at the end of the year to be extended for taxpayers with income below $250,000 a year, but not for the wealthiest 2 percent of Americans.

In exchange, the president has said he is willing to consider significant spending cuts that include unspecified changes to "entitlement" programs such as Medicare, the government health insurance plan for seniors.

Republicans are holding out for an extension of all the tax cuts, but have become increasingly divided over the past two weeks about whether they can prevail in the face of Obama's firm stance and Republican control of only the House of Representatives but not the U.S. Senate.

On Wednesday night, Republican Senator Bob Corker of Tennessee hinted on PBS' "Newshour" program that a change of strategy might be in the works.

"I think that there's a lot of thinking about the best way to actually cause the president to actually come forth with a real plan" for deficit reduction that might break the deadlock, he said, adding that "it just isn't" happening now.

"There's movement in a lot of directions," he said. "And so I do think Republicans are looking" at "what is the best way to get us in a place where we actually have the leverage."

(Editing by Peter Cooney)

Source: http://news.yahoo.com/obama-set-middle-class-family-visit-fiscal-cliff-110605243--business.html

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The Rare Straight Talking Real Estate Salesperson - Zillow Real ...

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Guatemalan police arrest software guru McAfee

In this image released by Guatemala's National Police on Wednesday Dec. 5, 2012, software company founder John McAfee is pictured after being arrested for entering the country illegally Wednesday Dec. 5, 2012 in Guatemala City. The anti-virus guru was detained at a hotel in an upscale Guatemala City neighborhood with the help of Interpol agents hours after he said he would seek asylum in the Central American country. (AP Photo/Guatemala's National Police)

In this image released by Guatemala's National Police on Wednesday Dec. 5, 2012, software company founder John McAfee is pictured after being arrested for entering the country illegally Wednesday Dec. 5, 2012 in Guatemala City. The anti-virus guru was detained at a hotel in an upscale Guatemala City neighborhood with the help of Interpol agents hours after he said he would seek asylum in the Central American country. (AP Photo/Guatemala's National Police)

In this image released by Guatemala's National Police on Wednesday Dec. 5, 2012, software company founder John McAfee sits after being arrested for entering the country illegally Wednesday Dec. 5, 2012 in Guatemala City. The anti-virus guru was detained at a hotel in an upscale Guatemala City neighborhood with the help of Interpol agents hours after he said he would seek asylum in the Central American country. (AP Photo/Guatemala's National Police)

Software company founder John McAfee poses for pictures after a press conference outside the Supreme Court in Guatemala City, Tuesday, Dec. 4, 2012. McAfee, 67, who has been identified as a "person of interest" in the killing of his neighbor in Belize, 52-year-old Gregory Faull, has surfaced in public for the first time in weeks, saying Tuesday that he plans to ask for asylum in Guatemala because he fears persecution in Belize. (AP Photo/Moises Castillo)

Software company founder John McAfee adjusts a microphone in preparation for an interview in Guatemala City, Tuesday, Dec. 4, 2012. McAfee, 67, has been identified as a "person of interest" in the killing of his neighbor in Belize, 52-year-old Gregory Faull. Police are urging McAfee to come in for questioning. The anti-virus company founder fled Belize and is seeking political asylum in Guatemala, according to his lawyer Telesforo Guerra. (AP Photo/Moises Castillo)

GUATEMALA CITY (AP) ? Software company founder John McAfee was arrested by Guatemalan police for entering the country illegally, ending his bizarre weekslong journey as a blogging fugitive claiming to be persecuted by authorities in Belize.

The fate of the anti-virus guru remained unclear Thursday as Guatemalan authorities awaited word from their Foreign Ministry as to what they would do with McAfee and whether they intended to send him back to Belize, where he is a person of interest in the killing of a fellow ex-pat.

"We are awaiting instructions from the Foreign Ministry. It will be the foreign relations department that decides the process," Interior Minister Mauricio Lopez Bonilla said following McAfee's arrest Wednesday at a hotel in an upscale part of Guatemala City.

Earlier on Wednesday, McAfee said he had formally requested asylum in Guatemala after entering the country from Belize, where he says he fears for his safety because he has sensitive information about official corruption and refused to donate to local politicians.

Since refusing to turn himself in to authorities in Belize, the 67-year-old had been in hiding, blogging his movements and calling reporters, until reappearing in Guatemala to claim asylum. He has not said how he crossed the border into Guatemala.

His lawyer in Guatemala, Telesforo Guerra, warned Wednesday night that McAfee's life would be in danger if he is returned to Belize.

"He will be in danger if he is returned to Belize, where he has denounced authorities," Guerra said. "From the moment he asked for asylum he has to have the protection of the Guatemalan government."

Guerra said he would ask that a judge look at McAfee's case as soon as possible.

Police in Belize deny they are persecuting McAfee and say there is no warrant for his arrest. The country's prime minister has even questioned McAfee's mental state. Since there are no restrictions on his travels, it's unclear why McAfee would need any special status in order to stay in Guatemala.

McAfee went on the run last month after officials tried to question him about the killing of Gregory Viant Faull, who was shot to death in early November on the Belize island where both men lived.

McAfee had engaged in a series of clashes with neighbors and authorities over allegations he kept aggressive dogs, illegal weapons and drug paraphernalia in his beachfront home on a Belize island. McAfee acknowledges that his dogs were bothersome and that Faull had complained about them, but denies killing Faull.

Faull's home was a couple of houses down from McAfee's compound.

The Faull family has said through a representative that the murder of their loved one on Ambergris Caye has gotten lost in the media frenzy provoked by McAfee's manipulation of the media through phone calls, emails and blog posts detailing his life on the lam.

McAfee dropped out of sight in Belize after police said they were seeking him, although he grabbed global attention with regular phone calls with reporters and blog updates. He claimed to be wearing disguises and watching as police raided his house. It was unclear, however, how much of what McAfee ? a confessed practical joker ? said and wrote was true.

At one point, he even posted on his blog that he mounted an elaborate ruse in Mexico involving a double with a passport under his name.

He had earlier said he didn't plan to leave Belize but ultimately did because he thought "Sam" was in danger, referring to the young woman who has accompanied him since he went into hiding.

"I need a safe place where I can actually speak out," McAfee said on Tuesday after his arrival in Guatemala. "Now that I'm here I can speak freely. I can speak openly."

He said he fears he will be killed if he turns himself in for questioning in Belize.

"Belize does not have a good track record of providing safety when they ask to question you," he said.

McAfee, the creator of the McAfee antivirus program, has led an eccentric life since he sold his stake in the anti-virus software company that is named after him in the early 1990s and moved to Belize about three years ago to lower his taxes.

He told The New York Times in 2009 that he had lost all but $4 million of his $100 million fortune in the U.S. financial crisis. However, a story on the Gizmodo website quoted him as calling that claim "not very accurate at all." He has dabbled in yoga, ultra-light aircraft and producing herbal medications.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/3d281c11a96b4ad082fe88aa0db04305/Article_2012-12-06-LT-Guatemala-McAfee/id-203e7742cc7f4e55aa04027997ef9110

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To the moon? Firm hopes to sell $1.5 billion trips

This undated image made available by NASA and photographed by the Expedition 28 crew aboard the International Space Station, shows the moon, at center with the limb of Earth near the bottom transitioning into the orange-colored troposphere, the lowest and most dense portion of the Earth's atmosphere. A team of former NASA executives are launching a private venture to send people to the moon for $1.5 billion. The newly formed business is offering countries a two-person trip to the moon, either for research or national prestige. The venture was announced Wednesday, Dec. 6, 2012. (AP Photo/NASA)

This undated image made available by NASA and photographed by the Expedition 28 crew aboard the International Space Station, shows the moon, at center with the limb of Earth near the bottom transitioning into the orange-colored troposphere, the lowest and most dense portion of the Earth's atmosphere. A team of former NASA executives are launching a private venture to send people to the moon for $1.5 billion. The newly formed business is offering countries a two-person trip to the moon, either for research or national prestige. The venture was announced Wednesday, Dec. 6, 2012. (AP Photo/NASA)

WASHINGTON (AP) ? Attention wealthy nations and billionaires: A team of former NASA executives will fly you to the moon in an out-of-this-world commercial venture combining the wizardry of Apollo and the marketing of Apple.

For a mere $1.5 billion, the business is offering countries the chance to send two people to the moon and back, either for research or national prestige. And if you are an individual with that kind of money to spare, you too can go the moon for a couple days.

Some space experts, though, are skeptical of the firm's financial ability to get to the moon. The venture called Golden Spike Co. was announced Thursday.

Dozens of private space companies have started up recently, but few if any will make it ? just like in other fields ? said Harvard astronomer Jonathan McDowell, who tracks launches worldwide.

"This is unlikely to be the one that will pan out," McDowell said.

NASA's last trip to the moon launched 40 years ago Friday. The United States is the only country that has landed people there, beating the Soviet Union in a space race to the moon that transfixed the world. But once the race ended, there has been only sporadic interest in the moon.

President Barack Obama cancelled NASA's planned return to the moon, saying America had already been there. On Wednesday, a National Academy of Sciences said the nation's space agency has no clear goal or direction for future human exploration.

But the ex-NASA officials behind Golden Spike do. It's that old moon again.

The firm has talked to other countries, which are showing interest, said former NASA associate administrator Alan Stern, Golden Spike's president. Stern said he's looking at countries like South Africa, South Korea, and Japan. One very rich individual ? he won't give a name ? has also been talking with them, but the company's main market is foreign nations, he said.

"It's not about being first. It's about joining the club," Stern said. "We're kind of cleaning up what NASA did in the 1960s. We're going to make a commodity of it in the 2020s."

The selling point: "the sex appeal of flying your own astronauts," Stern said.

Many countries did pony up millions of dollars to fly their astronauts on the Russian space station Mir and American space shuttles in the 1990s, but a billion dollar price tag seems a bit steep, Harvard's McDowell said.

NASA chief spokesman David Weaver said the new company "is further evidence of the timeliness and wisdom of the Obama administration's overall space policy" which tries to foster commercial space companies.

Getting to the moon would involve several steps: Two astronauts would launch to Earth orbit, connect with another engine that would send them to lunar orbit. Around the moon, the crew would link up with a lunar orbiter and take a moon landing ship down to the surface.

The company will buy existing rockets and capsules for the launches, Stern said, only needing to develop new spacesuits and a lunar lander.

Stern said he's aiming for a first launch before the end of the decade and then up 15 or 20 launches total. Just getting to the first launch will cost the company between $7 billion and $8 billion, he said.

Besides the ticket price, Stern said there are other revenue sources, such as NASCAR-like advertising, football stadium-like naming rights, and Olympic style video rights.

It may be technically feasible, but it's harder to see how it is financially doable, said former NASA associate administrator Scott Pace, space policy director at George Washington University. Just dealing with the issue of risk and the required test launches is inordinately expensive, he said.

Company board chairman Gerry Griffin, an Apollo flight director who once headed the Johnson Space Center, said that's a correct assessment: "I don't think there's any technological stumble here. It's going to be financial."

The company is full of space veterans; American University space policy professor Howard McCurdy called them "heavy hitters" in the field. Advisers include space shuttle veterans, Hollywood directors, former House Speaker Newt Gingrich, former U.N. Ambassador Bill Richardson and engineer-author Homer Hickam.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/b2f0ca3a594644ee9e50a8ec4ce2d6de/Article_2012-12-06-Private%20Space-Moon/id-36e583c6211b4849a68cba1063e99f15

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A Positive Attitude Makes All the Difference | Self Improvement Tips ...

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Venture Out On Your Own With A Home Based Business | Jim ...

Mistakes Are Costing You! Learn To Stop?Making ALL 189 Of Them!

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While a home based business might be very appealing, it is also intimidating to some people. But, how do you begin? How will your business work? You probably have lots of questions. There is some very helpful information presented in this article that will help you make the right decisions in your online business.

Protect your business?s financial security by setting aside money in an emergency fund. This will be very helpful when unexpected expenses come up and will help you keep the business running smoothly. However, be careful not to use your emergency funds unless it is truly an emergency. Replenish the fund as soon as you can.

If you have a online business, record all of your business driving. Being a business owner means changes to your tax status. This allows eligibility for deducting mileage and gas associated with your work. If you happen to drive a lot for your business, this can really add up to a substantial tax break at the end up the year.

TIP! Give as many contact options as possible and reply as soon as you can. Always retain a statement of whom continued to purchase your goods or services after seeking answers and keep a log of the conversation when possible.

Be sure to stay positive. Although it?s good to congratulate yourself for the triumphs of yesterday, you should not live for the past. What is coming tomorrow or next week is what you need to focus on. This can help you prepare for things that will happen in the future. If you stay focused on the future, you will increase your chances of being prepared for whatever may come your way.

A user-friendly and attractive website that sells your product is an essential part of of your home business enterprise. This is a key opportunity for you to expand your target audience and maximize sales. If you need to get your website set up quick, you can hire a professional.

TIP! If you plan to establish a home business, you should seek the support of family and friends. Running a home business is very time consuming, and can be both difficult and stressful.

Have business cards made up. You can even find some good business cards for free or cheap online. Be sure to include key information like your full name, phone number and company name. Adding your website and email are good ideas as well. This helps make it easy for customers and prospects to contact you.

Create a detailed work from home business plan. This plan may change significantly over time, and you may even decide to disregard it altogether. The importance of a business plan is that it sets up a great starting point and lists out everything you need to accomplish. Frequently update the details of your plan as your business evolves.

Select a name that has real meaning. Because your brand name serves as an ambassador to your products, you should make sure that your name is recognizable in order to assist your customers in relating to you. You might have an interesting or quirky story that is the reason behind your business name or brand. A back story will give your brand a personality and will let your brand be recognizable to your customers, which will help build a good customer base.

TIP! Plan a work schedule and stick to it. Don?t over-schedule yourself for working though.

If your home business is a sole proprietorship, you want to make certain that you remain in control of all financial decisions. Spouses or family members may desire to assist with the business; however, purchases for businesses must be closely monitored to ensure the ability to be used as a tax write off.

A great tip for your home business is to keep tabs on the prices that your competition sets. As such you will always have an edge on the competition.

Expenses such as taking clients out to lunch can be deducted on tax returns. The costs of these meetings are legitimate, tax-deductible business expenses. However, make sure that these meetings are with potential or paying clients. If not, they aren?t tax-deductible.

TIP! If you can, try and increase your income by establishing membership fees. In many cases, your site could easily implement a membership subscription that could increase your profits.

Locate your customers and communicate with them. You may be able to attract new customers online, but this is no substitute for face-to-face interaction. Organize events that are in their areas.

Before you begin marketing and selling products, you should set your price point based off market research. Look at your competition?s prices and price your products within the same range or more competitively if possible. If you offer a comparison between yourself and the competition, however, highlight your good points rather than their bad points.

When you have a home based business, it is very helpful to have a supportive peer group. You can find others to enlarge your own network. Even if the others in your network do business in other fields, you all share the dreams, motivation and concerns that come along with owning your own business.

TIP! Seek strength in numbers by joining an online forum comprised of members that are home business owners just like you. There are countless forums and websites dedicated to the owners of home businesses, and the information and support that can be gained there can be invaluable.

As was mentioned earlier in this article, a home business enterprise can be both appealing and intimidating. Hopefully you have gleaned some good information and advice from the tips shared in this article. Put that advice into action, and watch as things begin to work more smoothly for your home based business.

Are you ready to have success in the home based business industry and build it on autopilot? Click below to register for free today. See how it works here. Also check out our team benefits here

Source: http://leucabiz.com/blog/venture-out-on-your-own-with-a-home-based-business/

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