Money & Investing - Banks.com

With the volatility in the US stock market — and in other investments — many are wondering if something more tangible would make a better investment. Gold prices have been trending higher overall since last summer, and that is leading many to use gold as a safe haven investment. And some are making this transfer easy, through e-gold. Indeed, that is the subject of this reader question:

I have been hearing about e-gold from a friend of mine. Should I invest in e-gold?

E-gold is a way of transferring gold, via the Internet, between different owners. Users can transfer gold ownership — the metal itself is stored elsewhere. This is an interesting way to invest in something tangible. And for some people it can work. But you need to be very careful.

E-gold is subject to a high number of scams. These are often known as high yield investment programs (HYIPs), and they are actually very similar to pyramid schemes. The idea is for you to invest, and the refer friends, and then get even more.

Additionally, you should be wary of unsolicited emails, offering such “investment opportunities” as alluvial gold and other similar programs. (Note: Any unsolicited emails offering “great investment opportunities” should be ignored — no matter the market or investment.)

E-gold can work for some people. But it is still a risk. And you should never invest in e-gold — or anything else — merely because a friend asked you to. And certainly not if there is a “referral program” involved for an individual investment.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions.

Tags: e-gold, invest e-gold, investing blog, investment opportunities,
HYIPs, investments, investment scams

Right now, the stock market is enjoying some good news. As oil prices fall in commodities trading, US stocks gain as optimism ensues. (Of course, whether the oil prices will stay down long term is another question. The slide could be helped by profit taking.)

Today’s stock market news continues a general trend, over the past couple of months, toward recovery amongst equities in general. And one group that has been seeing some upward movement is in growth stocks. The Street reports on how the stock market has promoted growth stocks:

The equity markets have risen markedly over the past month, and whether there is enough steam to carry the growth style of funds higher is in doubt, given the less then encouraging economic news of late.

Of course, one can’t be too sure that the stock market — along with growth stocks — will keep going. Economic news, though better than most expected, is not necessarily signaling that the US will avoid a recession. And that could mean that growth stocks see a drop in the coming months.

What are growth stocks?

Growth stocks are those that have the potential to grow — and grow quickly. They are usually small cap stocks, and they are often in emerging technology sectors (though not always). They are generally very inexpensive, and they have the ability to make you a lot of money if you get in before they really take off.

On the other hand, growth stocks are also risky. They can just as easily tank, and this can leave you with large losses if you are not careful.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions.

Tags: stock market, stock market news, investing blog, growth stocks,
economy, investments, recession

There are always a lot of investing ideas, tips and advice floating around out there. Today I thought I’d take a look at some of what’s going on in the investing world, from forex trading to real estate trends to commodities.

Forex trading

One of the investing products that has been growing in popularity lately is the forex exchange traded fund. ETFs can be traded on the stock exchange, and forex ETFs allow you to diversify into currencies without actually getting involved in forex trading.

Now, addressing the lack of forex ETFs for emerging market currencies, there are some new currency funds for countries like India and Brazil. And interesting thought.

Real estate investing

In the hardest-hit markets, it may be a great time to buy. As home prices move lower, investors are swooping in. This means that in some real estate markets, signs of life are starting to appear. If you are looking to make a real estate investment, and you can secure the funding, it may be a good time to go for it. Just make sure that you carefully consider the area you are looking into. You want to buy in real estate markets that, though hard hit, are more likely to recover.

Commodities investing

Oil prices are heading down right now, but how long will they stay down? Worries over how emerging markets will be able to keep up with prices have oil prices steadying. But will they fall further? Or will they make a turnaround and head back up? If you think they’ll be heading back up, maybe now might be a good time to buy — you know, while they are retreating.

For an interesting look at oil prices and how they are related to gold prices, check out this post on Power Wealth.

Finally, if you are looking for a list of good online discount brokers that can help you get started in investing, Blueprint for Financial Prosperity has a great review of some of the best.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss.