During the last few months we have frequently urged our readers to look out for pull-backs in the gold and silver spot prices and then take the opportunity to increase their exposure to these metals with any spare cash that they may have. Of course we appreciate that it is a rare occurrence for the [...]
We have been asked by a number of our readers to explain the VIX Index after our article on future gold direction as a result of this week’s stock market turmoil so here goes.
The methodology uses the implied volatilities of the options of a range of the components of the S&P 500 calculated from both calls and puts on a daily basis.
An Investment Trust is a company with a stock exchange quote that invests its shareholders money in a portfolio of shares in other companies.
In effect, they are collective investment funds with a fixed capital and a fixed number of issued shares that are traded on a stock exchange.
As they have a fixed capital they are known as ´closed end´ trusts to distinguish them from Mutual Funds/Unit Trusts.
If you believe that gold and other precious metals will continue their current bull run for a good while yet but have limited funds to invest then mutual funds specializing in this market could be the answer.
Limited money to invest limits the spread of risk
It is not practical to share limited available cash between a number of companies in this or any other sector of the stock market in order to lessen the chances of a catastrophe occurring to one of your few stock picks.
To the serious and single-minded investor Gold, Platinum and Silver jewelry items are unlikely to come near the top of the potentially profitable opportunities that he or she will research.
It is reasonable to propose, that before venturing into this market, a tremendous amount of investigation should be carried out and knowledge assimilated that is not relevant to other investment vehicles.
ETFs are Exchange Traded Funds which consist of a group of securities, commodities or derivatives that are traded as shares on a stock exchange.
Stock market indexes, for example the S&P 500 or the FTSE, commodities such as oil or gold, or a specific market sector such as aviation, energy or utilities can all be traded as ETFs