Sunday, December 1, 2013

What investment vehicle typically yields the highest percentage income? and Gold Bars in Golden Bullion Shop

What investment vehicle typically yields the highest percentage income?



Not necessarily the highest overall RETURNS, but the highest cash flow as compared to the price of the investment.

Ex. Real estate rent, dividends from dividend-paying stocks, interest from bonds, etc.
No I'm not talking about P/E Ratio...I am talking about cash flow returns.

Growth stocks would definitely not be the answer because they do not pay dividends. Hence zero cash flow returns.


Investment best answer:

Answer by Zetsu
I think that you are asking about P/E Ratio, Price to Earnings, which means for each share that is invested in a company, how much did each share own.

The answer to this would be any sort of growth stock, like large cap growth or small cap growth, as these have the highest P/E Ratio but low Dividend Yields.

It's tough to compare a rental property because there are many factors that go into it.


Investment

Gold Bars in Golden Bullion Shop
Investment

Image by epSos.de
Free picture about the beautiful gold bars in the bullion shop of a bank. This free image can be used for free under the creative commons license with the attribution of epSos.de as the original author of this picture. The image was created and used for this article of epSos.de first: epsos.de/10-Facts-about-the-value-and-price-of-gold

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Of all the precious metals , gold is the most popular as an investment. The investors usually buy gold as a hedge or safe haven against any economic crisis, political, social, or fiat money (including investment market decline, increasing the national debt , currency failure, inflation, war and social unrest). The gold market is also subject to speculation as commodities , in particular through the use of forward contracts and derivative . History of the gold standard , the role of gold reserves in central banking , the correlation of low gold prices of commodities other, and the determination of the price compared to fiat currencies during the financial crisis of 2007-2010 , suggest that gold has features into money .

Gold has been used throughout history as money and has been a relative standard for currency equation specific economic area or country. Many European countries implemented gold standards in the latter part of the 19th century until these were dismantled in the Financial Crises involving WWI . After World War II , the Bretton Woods system pegged the United States dollar to gold at a rate of $ 35 per troy ounce. This system exists to Nixon Shock , 1971, when the U.S. unilaterally suspended the convertibility of the U.S. dollar further with gold and make a transfer to the system fiat currency . Last currency divorced from gold was the Swiss Franc in 2000.

In March 2008, the gold price exceeded U.S. $ 1,000,achieving a nominal high of U.S. $ 1,004.38. In real terms , actual value was still below the U.S. $ 599 peak in 1981 (equivalent to $ 1,417 in value of the U.S. dollar in 2008). After stab March 2008, the price of gold fell to a kekurangangold U.S. $ 712.30 per ounce in November. price of gold will soon extend the hardness towards the top with a temporarily break the limitations of U.S. $ 1,000 again in late February 2009 but fell back modestly later in the quarter.

After fluctuating back close to U.S. $ 1,000.00 mark in mid-September 2009, the international gold market peaked to U.S. $ 1,023.30. Hargaan then moderately declined again in late September 2009, fell back to U.S. $ 991.70 for the week ending September 25, 2009.

Then in 2009, a record intra-day spot price in March 2008 of U.S. $ 1,033.90 was broken many times in October, when the price of gold entered parabolic in advanced stage new heights when a reverse stab to $ 1,226 starting price of an impact on the level of mid-October. On September 17, 2010, gold prices closed at a new nominal high $ 1,281.73 on NYMEX.

Investment gold is a special form of gold that is used as an investment tool as such securities . It is all about gold coins and ingots ( bars ) that are not purchased from collectors , numismatic reasons, but as an investment , ie, to save paper money .

Gold has been used as a form of money since at least 560 BC until the end of the Bretton Woods monetary system in 1971 . It was used for the keeping of the value of both individuals and states throughout this era (from the beginning of the Bretton Woods system in 1945 , then was limited to the states).

By the end of the Bretton Woods system fundamentally gold has lost its role as a form of tender . But it is still considered a bearer of values, especially in times of crisis.


Central banks still retain large gold reserves . International Monetary Fund is working on a change in the presentation of gold reserves by central banks (to date, and showed them the gold that was "lent" to traders for interest and was not physically in the bank). The new methodology should be in the world during the spring of 2007 , when it will be given to a broad comments.

Gold and other precious metals are assets , both tangible and liquid (easily traded) as opposed to real property that are tangible but not liquid.

Taking into account its high density and value preservation and transfer of gold is very simple. Gold rust. In the past it was also very easy to verify that the coin had declared the density of gold due to Archimedes . Today, however some metals heavier than gold, but it is cheaper. While some think that gold is something exceptional by virtue of its cultural values ​​and use as money, others consider gold as a commodity similar to copper or lead .

Gold is traded on commodity markets , hence also affects the price. By default, the physical gold prices traded by the so-called "realtime spot" (the spot price of the commodity exchange) or by fixing the future (stop price announced by the London Bullion Market Association). The price is usually accrue to the Premium (trading margin - margin), which for serious traders only amounts to a few percent, and any production costs (especially for small ingots, coins, jewelry, etc.).

Price of physical gold is only one (stock price), the difference is only Premium and manufacturing margins, which fundamentally depends on the quantity of order.



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