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If you haven’t already considered investing in gold, then you might want to start thinking about it. Even for those who have little or no experience in investing and trading, this is fast becoming a popular option, and here’s why.

Uncomplicated

One of the main reasons why trading gold has become so popular is the fact that it is a relatively straightforward means of investment. Like the trading of most commodities, investors are able to make money on the basic premise of buying at a low price, and selling when the value is much higher. Online trading services, such as Bullion Vault also make it exceptionally easy to stay informed about the changes in such values. These sites provide their users with up-to-date live price information, as well as allowing them to trade in a range of different currencies.

Convenient

Buying gold via the internet is also one of the most convenient ways to manage your investments. You can both buy and sell gold from the comfort of your own home, as well as have the ability to trade twenty-four hours a day. Online trading services also offer will store the gold which you have purchased, so you do not need the facilities to do so yourself. Opening your online account is also usually a relatively quick process.

Perfect for Beginners

Aside from the straightforward premise for trading and the convenience, there is another reason why gold is often the preferred choice of investment for beginners. This is the fact that the value of gold is less likely to change drastically within a short space of time. Of course, this often means that you will need to be patient with your purchase, and wait a while before you are able to see a return a on your investment. However, for those who do not have time time or the knowledge to keep a close eye on the frequent changes of the stock markets, trading with gold can be an ideal investment solution.

I have finally updated my blog to a new template. It took me about 6 hours to change and customize the blog with the new template. First I backed up all my data in case anything goes wrong. Next, I had to customize the sidebars, main sections, footers, colors, etc and it was tedious. But I am glad it is all done now. There may be small customizations here and there, but at least the major ones are set.

The blog template is from i3Theme. It has 3-columns, widget-ready, and loads fast. I think it is clean and it keeps everything organize. Hopefully the readers will like the new blog template. Let me know what you think.

My RSS feeds is still http://feeds.feedburner.com/GrowingMoney

For the records, here is a snapshot of the old template.

One of the major problems with the old template was that the first post did not always display properly. Also when the browser window was not set to maximum size, the middle section of the blog tries to resize and fit the screen, however when the browser window was too small, the contents would not display properly. Also, the old blog template did not have a place for a tag line.

Fortunately, all the old issues are resolved with the new template. Here is a snapshot of the new template.

High Risks Can Equal High Returns

Some industries make their money in high risk areas, like the cash advance industry. The idea behind taking on borrowers who may not be able to get a loan elsewhere, either because of a poor credit score or insufficient assets, is to provide a high risk service in return for the possibility of a high return. Without this type of industry, those people who did not qualify for conventional lending would be shut out of the consumer lending arena. This can be particularly harsh on people who may be struggling with medical bills or household emergencies and have no where else to go.

However, lending to people who may not be able to pay the lender back, the payday lenders take on significant risks. They try to manage the risks by limiting the amounts that can be borrowed and by ascertaining that the person asking for the loan is gainfully employed. This is why it’s called a cash advance, instead of a loan in some cases, because they are advancing monies that will be subsequently paid back on the next paycheck cycle. In return for committing to that high-risk, short-term, loan the lender has to place a higher interest on the loan to secure a return on their investment. This high interest is computed to allow for people who may default on the repayment of their loans.

If there were no cash advances available, people who had problems with credit or few assets would not have a way to cover short-term emergency expenses. There is also the argument that these types of loans benefit people who have experienced a bankruptcy as they can still qualify for them, if they are employed. They also can help to rebuild a positive credit history if the paycheck loans are paid back on time.

The cash advance industry has evolved with the Internet and now can offer their services across the World Wide Web. It has become more secure, and more confidential, in the sense that you don’t have to walk into a brick-and-mortar outlet to apply for one. Payday loans continue to have a niche market and be popular with investors and business owners who see a way to meet a need while carefully managing the risks that this special group of people require.

This is a sponsored post.

Rate Cut Party Continues

Sep 19 – U.S. stocks rallied for the second straight day after the Federal Reserve’s surprise half-point rate cut.

The stock market has seen some wild swings recently, the sub prime market is almost devastated, and the real estate market is falling. With so much uncertainty, the best place to park your money is in cash. Cash is safe and liquid.

The stock market index has moved up and down in a huge range over the past few months. The Dow has closed with a spread of more than 100 points 32 times since June 1, 2007. Let’s take a look at the high volatility of the Dow from June 1 to September 11, 2007.

Date Change
9/11/2007 180.54
9/7/2007 -249.97
9/5/2007 -143.39
8/31/2007 119.01
8/29/2007 247.44
8/28/2007 -280.28
8/24/2007 142.99
8/22/2007 145.27
8/17/2007 233.3
8/15/2007 -167.45
8/14/2007 -207.61
8/9/2007 -387.18
8/8/2007 153.56
8/6/2007 286.87
8/3/2007 -281.42
8/2/2007 100.96
8/1/2007 150.38
7/31/2007 -146.32
7/27/2007 -208.1
7/26/2007 -312.22
7/24/2007 -226.47
7/20/2007 -149.33
7/12/2007 283.86
7/10/2007 -148.27
7/2/2007 126.81
6/22/2007 -185.58
6/20/2007 -146
6/13/2007 187.34
6/12/2007 -129.95
6/8/2007 157.66
6/7/2007 -198.94
6/6/2007 -129.79

The Dow Index has rallied as much as 286.87 points on August 6, 2007. A few days later, on August 9, 2007, the market dropped by as much as 387.18 points. That is a spread of 647.05 points in three days. Imagine you are holding a company that trends with the Dow but on a wider scale. You will be seeing some wild movements and it may be difficult to stomach such volatility, especially if much of your money is in there.

I think it’s a good time to have more cash on hand and wait on the sidelines until this “mess” clears up. It will be also be a good opportunity to pick up some stocks for a cheaper price.

I have sold most of my stock positions in August and my money is mostly in cash. I will take this time and opportunity to do some research on companies. I look for solid companies that have a solid track record and great long term growth prospects but the shares are currently oversold. The deeply depressed stock price allows me to buy shares of the company for a discount and gives me a comfort of security. I feel the risk level is very low and at the same time there is great opportunity for reward. This strategy has always worked out well for me. Whenever I buy stocks with little downside to it, I do not have to fear of a big drop and if I’m patient enough, I usually end up reaping huge gains.

One great example is my purchase with the big pharma company, Pfizer. I bought shares of PFE at $21.25 on 12/5/2006. It was a time when shares of PFE were being dropped left and right, but the company was doing well. Around that time PFE also increased dividends. I held my shares of PFE for a little over a year and sold them earlier this year, at $24.85 on 3/6/2007. My gains came in at a nice 17% plus about a 4% dividend, so the total is roughly a 21% gain. Also, because I held my shares for at least one year, I would pay only 15% on long term capital gains tax on the investment.

Another market I like to invest in is the real estate market. The real estate market has risen for the past several years and has finally gone into a down trend. With the sub prime market crushed and home prices depreciating, a good place to park your money would be in cash.

I’m waiting patiently for a good opportunity to enter the real estate market. If I can buy at the right place and at the right time, I can end up with a property that will appreciate greatly over time.

I like being in cash positions because it allows me to be financially flexible. I can move my money in any market at any time. If I think the stock market is the place to go, I can immediately buy shares of stocks. If I think the real estate market has a good entry point, I can immediately shift my money to the real estate for a deposit or down payment. The liquidity is an important factor; it can make or break a deal.

Let’s look at a scenario where liquidity can help or hurt you. Imagine you see a very nice house for a bargain. The owner is trying to sell the house quick and asks you for a deposit. Your money is tied up and you tell the owner you need some time to free up your money. The owner cannot wait and sells the house to another person who can immediately put down the deposit. You have just lost a great investment opportunity.

Liquidity is important. Untied money allows you to pick up bargains quickly and move freely from one market to another to take advantage of opportunities. Cash is king.

Oil Sets $80 Record

Sep 12 – Crude oil prices temporarily topped $80 in New York for the first time on record after a sharp drawdown in U.S. inventories sparked supply concerns.

Wall St. Smells A Rate Cut

Sep 11 – Rate cut hopes plus strong corporate news equaled a rise in stock prices on Tuesday, the sixth anniversary of the Sept. 11 attacks.The blue-chip Dow rose 180 points to 13,308. The broader S&P 500 rose 19 points to 1,471. The tech-based Nasdaq tacked on 38 points to 2,597.

Techs Edge Higher Ahead of Bernanke

Aug. 30 – Technology stocks nudged higher, but the rest of the market languished as traders await a key Friday speech from Federal Reserve chairman Ben Bernanke. The Dow lost 50 points to 13,238. The S&P 500 dipped 6 points 1,457. The Nasdaq rose 2 points to 2,565.

Stocks Rally 2%; Apple Shines

Aug 29 – U.S. stocks enjoyed broad-based gains on Wednesday as investors went on a shopping spree and speculation about a product announcement from Apple boosted tech stocks.The Dow rallied 247 points to 13,289. The S&P 500 rose 31 points to 1,463. The Nasdaq gained 62 points to 2,563. Crude oil prices settled well above $73 a barrel.

Renewable Fuels Becoming Reality

Aug 27 – Earlier this month, the Ford’s Fusion 999 hybrid reached 207mph on the track, lending support to the view that renewable fuels are here to stay.The Bush Administration’s “20 in 10″ renewable fuel research initiative is yielding fruit in the private sector. The Department of Energy is working with many of the major car companies for the “20 in 10″ initiative introduced in this year’s state of the union address. President Bush says he wants to see U.S. oil consumption decrease by 20% in the next 10 years, back to about 1996 levels.