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

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. 

One of the more exciting things to happen around the Banks.com neighborhood is the recent acquisition of MyStockFund.com. This is actually a really cool way to get started with investing.

For many beginners, it can be daunting to open an investment account. And there are many online investing brokers that can help you ease into the process. MyStockFund, though, has some features that I really like — features that make stock investing a little easier:

• Fractional investing. This is when you buy portions of a share, rather than a whole share. So, if a share costs $80, and you only have $40 to invest, you would get half a share. If you had $100 to invest, you would get 1.25 shares. This method is very helpful in conjunction with dollar cost averaging or a “buy and hold” strategy.
• Low commissions. It is possible to make trades for as little as 99 cents. There are also investing plans with special pricing, and a promotion going on right now to allow you to waive the subscription fee on one of the accounts.
• No minimum balance. Some online investing services require you to hold a minimum balance. When getting started, this can be difficult. Most beginning investors don’t have $2,000 to $5,000 just laying around to get started with.
• Investment amounts start as low as $10. Many times, an investment account will require at least a $50 minimum per investment. MyStockFund makes it easy to get started with a $10 minimum.
• Dividend reinvestment. Once of the most investment strategies is to reinvest dividends. You can get free dividend reinvestment on MyStockFund. It is also possible to set up your investment account so that dividends are automatically reinvested.
• IRAs. Not every online investing Web site offers retirement account options. You can open an IRA and start saving for retirement — or beef up your retirement savings — with help from MyStockFund.

Bottom line: While it may not be the best option for all investors, MyStockFund is a great service for beginning investors. And, really, day traders can still benefit by setting up an account and taking advantage of the low commissions.

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.

Tags: stock investing blog, stock investing news, online investing, fractional investing,
retirement accounts, investment account, investing plan