TV, radio, and Internet ads do not give objective investment advice. They are trying to sell you something. Step back, be objective, and evaluate your own needs and investing priorities
An investment in gold or another precious metal can be alluring.
“This is a no brainer,” you say. “I mean gold is one of the safest investments of all time.”
It might make sense for you. But you need to ask the right questions. And do some research.
Let’s take a trip down memory lane. History can be instructive.
The year is 1980. The economy is in the crapper. The 1970s were a tough slog, economically speaking. The glory days of America feel like they are over. Families are hurting. Panicked about the U.S. economy and the future of the U.S. dollar, people invest in gold. They “conservatively” buy it at $682 per ounce. They are told it’s a smart move and history shows it has performed incredibly well over the preceding decade.
But within two years of 1980 the value of an ounce of gold fell to a mere $310. Yep. Less than HALF of what investors paid. Two decades later, by 2001, the market value was just $256. Investors had to wait until 2007 to just break even on the $682 they paid.
The point illustrated here with gold also applies to other precious metals. Before you invest in any, consider the following:
• TV, radio, and Internet ads are ADS. They are not giving you objective investment advice, even if you think it is coming from a trusted personality. They are trying to sell you something. Step back, be objective, and evaluate your own needs and investing priorities.
• Don’t put your eggs in one basket. Any investment should be part of an overall strategy, which includes diversified assets such as stocks, bonds, real estate, etc.
• How long can you wait to break even?
• Consult an investing professional who can provide objective advice.
• Consider the different ways you can invest in gold (or other metals): gold stocks (e.g. shares of a company that mines gold), funds, bullion, bullion coins, and collectible coins. Understand the different risks and benefits of each.
• Make sure you’re dealing with a licensed broker and reputable dealer. FINRA, the Financial Industry Regulatory Authority, has a useful tool for that.
• Consider additional costs, such as insurance or storage.
• If you don’t take delivery of the metal yourself, make sure it actually exists. Federal and state regulators have taken action against a number of scam dealers, including one just recently against Gold Distributors Inc. Use an independent appraisal of the gold to make sure the seller’s price isn’t inflated.
• If a sales pitch minimizes the risk or urges you to act immediately, it’s a red flag.
• Always keep investing simple. Unnecessary complexity represents unnecessary risk.
Precious metal investments can be useful components of your portfolio. They can help you diversify and they can help hedge against inflation. Just play it smart.
More information about investment in metals can be found here.
SEBI found that Adel Landmark was collecting money from investors through various schemes withtout obtaining registration certificate from SEBI
Market regulator Securities and Exchange Board of India (SEBI) directed Adel Landmarks Ltd (formerly known as Era Landmarks Ltd) and its directors to shut down its collective investment scheme (CIS). SEBI also directed the company not to collect, any money from investors under its existing CIS schemes, lauch new schemes and divert funds collected from investors.
SEBI found that Adel Landmarks was engaged in fund mobilising activity from the public, by floating ‘collective investment schemes’ without obtaining certificate of registration from SEBI.
SEBI received several complaints about Adel Landmarks regarding the scheme launched by the company for pre-booking of plots in 'Cosmocity', Gurgaon. SEBI found that Adel Landmarks had mobilized crores of rupees from investors and failed to refund the same within the stipulated time.
SEBI said, “It appers that activity of fund mobilization by Adel Landmark under the 'scheme' with a resultant promise of returns when considered in light of peculiar characteristics and features of such scheme, satisfies all
four conditions specified in Section 11AA (2) of the SEBI Act.
Hence as per SEBI Act, 1992 and CIS Regulation, SEBI has directed Adel Landmark and its directors; Sumit Bharana, Arvind Kumar Birla, Manisha Bharana, Rakesh Kumar Gupta, Rashmi Bharana and its former directors;
• Not to collect any fresh money from investors under its existing scheme;
• Not to launch any new schemes or plans;
• To immediately submit the full inventory of the assets owned by company;
• Not to dispose of any of the properties or the assets of the existing scheme;
• Not to divert any funds raised from public at large;
• To furnish all the information sought by SEBI within 15 days from the date.
With excise duty cuts providing some succour, auto sales in May rose 13.2% to 16.98 lakh units, says SIAM
Domestic passenger car sales grew 3.08% to 1.49 lakh units in May compared with 1.44 lakh units in same month last year.
According to the data released by the Society of Indian Automobile Manufacturers (SIAM), except for passenger carriers in medium and heavy commercial vehicles (M&HCVs) and good carriers in light commercial vehicles (LCVs) categories, all other segments witnessed growth during May 2014.
"With excise duty cuts providing some succour to auto industry, there are early signs of improvement in HCV sales. Even passenger vehicle sales are up for the first time in more than 15 months," SIAM said in a statement.
According to the industry body, total sale of vehicles across categories registered a growth of 13.22% to 16.98 lakh units in May compared with 15 lakh units in May 2013.
Two-wheeler registered 16.3% higher sales to 14.03 lakh units from 12.06 lakh units same period previous year. Scooter sale continued to lead the industry in May with a jump of 34.5% in sales to 3.58 lakh units from 2.66 units, while motorcycle sales grew 11.71% to 9.84 lakh units from 8.81 lakh units, same month last year.
Total sales of commercial vehicles were down 15.28% to 46,986 units from 55,458 units in May 2013, SIAM said.
Here are the details on vehicle production, sales and export in May...