Are Diamonds a Good Investment?

There are few symbols that are so universally associated with wealth and luxury as diamonds. Throughout human history, diamonds have been coveted for their exceptionally beautiful and unique aesthetic properties. As with anything that is both beautiful and valuable, diamonds have proven to be a popular investment commodity. But are they a good investment? Should the burgeoning investor look to diamonds as a strong opening move in their investment career? Will this boost your investment portfolio in a meaningful way?

Why Diamonds?

Anyone can appreciate the fact that a diamond is an intrinsically beautiful object. Even if we cannot put into words precisely what it is about diamonds that we find so appealing, if you were to show the same diamond to a group of people, most would be able to agree on how ‘attractive’ it was. This is because the things that we find appealing about diamonds resonate with us on an intuitive level; it isn’t easy to put these things into words, but most of us agree on them.

From the perspective of an investor, this makes diamonds a reliable commodity to invest in. There is never any doubt that there will be a market for diamonds. Especially as they also have a number of industrial uses.

If you are considering making an investment, in diamonds or anything else, you should seek out a financial advisor, such as Trust Point to help you manage your investments wisely.

Strong and Durable

Diamonds are very resilient materials, hence their use in machines that cut the hardest materials. For example, diamonds are used to cut other diamonds as any other material quickly buckles under the task. Coupled with their small size, this durability makes diamonds a secure investment. There aren’t many commodities that you can invest in, and also physically hold yourself. With diamonds this is not only possible, it’s simple.

Use Them While You Have Them

Another aspect of diamonds that makes them unique as an investment commodity is that they can be put to use while you are in possession of them. For example, having a diamond set in a ring won’t cause it to depreciate in value, it will be worth just as much set in a ring as it would be sat in a bank vault.

An Investment You Can See

Most of the time, when someone makes an investment, it is in something abstract like a stock or a share. In the case of commodities, these investments are backed up by physical substances. But even in the case of commodities, these are usually things like oil, which are impractical to store and possess yourself. However, in the case of diamonds, you can see the thing you are investing in in front of you. Many investors find that having something tangible to show for their investments has a beneficial psychological effect. When you see the thing you are investing in, many people find that they are less likely to risk their investment.

Diamonds have long been a popular investment option, and they are still an excellent choice today. If you are looking for investment opportunities, consider diamonds.

7 Reasons Why Gold is Still a Good Investment

Since time immemorial, various generations have continued to hold on to gold for many reasons. Even as different promising investment portfolios such as cryptocurrencies emerge, below are a few rationales as to why you should still consider gold as a competent investment.

  • Gold is a stout store of value

In case you are seeking a long-term store of value, do not look further than gold. Unlike various fiat currencies which constantly depreciates in value, gold has for over the past 3000 years proved a reliable and stable means of preserving and passing down wealth from one generation to the next, with entirely negligible glitches if any.  A good example is the Sterling Pound, the currency has been around for nearly 1200 years and has lost nearly 97% of its value in its entire period of existence.

  • Unparalleled liquidity

Gold bears higher liquidity compared to most assets. It is a universally accepted mark of quality, with a variety of uses; in fact, there are about 15 uses of gold common to all regions of the globe. The precious metal can always be exchanged for fiat currency or traded against other goods and services anywhere in the world.

  • There is no specialized knowledge required to invest in gold

Unlike stokes, bond, cryptocurrencies, real-estates, among a series of other investments, gold requires no specialized skills. As an investor, all you need to do is simply buy and store your gold bullions. There are no tedious charts to compare all day long, or trading bots to trust with your investments.

  • Gold is a great way of diversifying your investment portfolio

As you lower the overall risk of your different investment portfolios, there is no better way to do it than through investing in gold, as aforementioned, it is a stable store of value and isn’t contrastingly hit by fluctuations in market value.

  • Gold is an excellent hedge against inflation

As inflation hits, different forms of investment valued in fiat currencies such as the Dollar usually depreciate in value. Gold has over the past several decades surged in value as the stock markets and fiat currencies plunged in merits in times of inflation crisis. Many wise investors, therefore, tend to hold much gold than any other forms of investments during high-inflation periods as it safeguards their purchasing power.

  • Gold enjoys a limited supply

What does limited supply of gold mean to you as an investor? With diminishing supply of gold comes greater demand for the commodity. This means that the price of the precious metal will constantly soar accruing lump sum profits over time. Statistics indicate that there has been declining production of new gold since the year 2000 coupled up with growing demand.

  • Privacy and confidentiality

Finally, contemporarily, virtually any other forms of investments available do not provide top-tier privacy and confidentiality to investors. On a different note, gold is one type of investment where one can go anonymous. Any investor can choose to keep his or her gold assets private and oblivious to anyone’s knowledge apart from parties directly involved in gold transactions.

Overly, gold is the best means of protecting one’s purchasing power and hence the most reliable investment option in times of economic crisis. Additionally, its other advantages give it a long-term competitive edge against any other forms of investment.

3 Tips to Liquidating Client’s Investments into Crypto

Diversity is one of the most important tools for success. This also applies to investment. Most people are now being advised to liquefy their investments and assets. Many opportunities have come up such as bitcoin that is substantially surging in terms of value. The growth of bitcoin is exponential, indicating a high potential for cryptocurrency in the near future. Liquidity providers are now making it possible for clients to hedge off their financial risks. Varieties of strategies are being offered on a daily basis. Below are pointers you can exploit when liquidating clients’ investment into crypto:

  1. a) Use high-performance liquidity tools

One of the most important tips is to use a company that has high-performance liquidity tools such as http://www.global-liquidity.com/. The questions you should ask yourself are whether or not the company is reliable and whether it has been previously tested by other companies on its stability. You can go further and check reviews of the company that have been left by clients who have used it before. Reviews are always the honest opinions left by customers on whether or not they found the services of the said company to be satisfactory. A company with a good rating and excellent reviews often gives assurance of the level of performance offered. Working with one that is high performing is crucial, given that working with crypto is a dangerous affair and you may risk losing too much money. Downtimes and spikes are eradicated when working with high performing sites, so it is easy to keep up with the changes that are going on and manage to maximize profits.

  1. b) Use ultra-low latency execution

One of the major problems that investors deal with is low latency. It is not only extremely discouraging but makes them lose out on many opportunities that they could have otherwise used to succeed. To ascertain that your client gets the best, use a company with extremely low latency. The move will ascertain that the orders placed are filled up quickly. These companies always have the departments connected to all the brokerage houses as well as financial institutions in the world such as stock exchange markets. With fast executions, the clients will be able to get updates quickly and make executions on time. The companies can send all the flow of stock exchange globally, despite the volumes of the investors. Due to low latency, the trading is done in milliseconds, thus, guaranteeing the restriction of any slip-ups and giving reassurance on tighter spreads.

  1. c) Complete Transparency with Clients

Liquidity in investments opens new doors to mistrust. It is not tangible. Hence, clients have so much trust to build before they give you the majority of their investment. To build up a strong network, it is important to have complete transparency with your clients. Let them know of every move and even slip-ups that occur during trading.

Things You Should Know Before Investing Offshore

Offshore investing may be deemed as deposits or investments held in jurisdictions other than that of one’s residence. Such investments may be considerably more complicated than local investments due to a number of factors as highlighted below:

Risks Unique to Offshore Investing

  • Forex risk

This is the risk attributable to the variation in exchange rates in currencies. One’s foreign-denominated assets may enjoy capital gains but may result in losses when those prices are converted back to the domestic currency.

  • Information asymmetry on the part of the investor

This simply means that you, as a resident in your domestic country, may not know what exactly is going on in another country (in which you have acquired assets) and as such cannot make appropriate investment decisions with regards to these foreign countries.

National Policies affecting offshore Investing

Offshore Investment Allowance

This refers to the maximum allowable amount can have in offshore investments. Typically, most countries cap this amount so as to prevent criminal activities. This was a counter measure to gangs and outlaws who would move illegally-obtained money to other jurisdictions and effectively erase their paper trail. In order to stay within the law, it is advisable for one to consult their local bank, broker or some other credible source of information for this. The last thing you want is to be on the wrong side of the law!

Tax Implications

Offshore investments have quite a bearing on one’s tax obligations. Typically, an investor is liable to paying the following taxes:

  • Capital Gains Tax – this tax is levied on the profit an investor gets when they sell an investment
  • Income Tax – this tax is levied directly to one’s personal income
  • Estate Duty – also known as inheritance tax, this tax is levied on the estate of an individual who has passed away.
  • Withholding Tax – this tax is levied by some countries on interest or dividends paid to an investor who resides in another country

Locally – denominated investments typically have the simplest tax obligations when it comes to the aforementioned taxes. However, when investing offshore one may be liable to paying all these taxes both in one’s local country as well as the foreign country.

Firstly, one may want to consider making offshore investments in countries that may be described as low-tax and/or zero – tax jurisdictions. Such countries are known as tax havens. Examples of such jurisdictions would be Luxembourg, Bermuda, Chanel Islands, Dublin and Lichtenstein. Investment in other countries such as Britain, France and the US are subject to tax within those jurisdictions.

In addition to this, there are plenty more opportunities for tax planning when it comes to one’s foreign investments. One such opportunity would be the establishment of offshore trusts. In certain jurisdictions, foreign – denominated offshore trust investments can save one tax. For instance, a UK domiciled settlor may have an offshore trust operating as a tax shelter specifically if the offshore trust is established for the benefit of their grandchildren.

How much should one put into their offshore investments?

There is a wide variety of views on how much one should ideally invest. One method of determining the optimum amount one should invest is by coming up with an efficient frontier graph.  The efficient frontier is the set of optimal portfolios that offers the highest expected return for a given level of risk.

However, a simpler method of determining your optimal investment may be analyzing the impact of exchange rates on your living expenses. For instance, how will the fluctuations in the exchange rate affect the cost of gas? You may want to reduce/increase your offshore investments to hedge yourself against unfavorable exchange rate currency fluctuations.

5 Tips to Choosing a Cryptocurrency Trading Platform

Many people, as well as institutions are interested in the cryptocurrency and building their wealth. There are various types of trading platforms with different offers and finding the right cryptocurrency platform is very important. Before starting this trade ensure that you have the required knowledge about cryptocurrency trading. When looking for a trading platform, there are a few things to consider. They include;

  • Authenticity and fund security. Before depositing a large amount of money, do some research on the platform to ensure it is secure and that your money is safe. Some platforms have faced a number of problems such as hacking, fraud as well as bankruptcy leading to the loss of investor’s money. This money once lost cannot be recovered so ensure you choose a secure platform.

 

  • Transaction fees. Trading platforms make money from the transaction fee that you pay every time you trade. Different trading platforms have different transaction fees. There are platforms that offer discounted fees when a transaction is completed by its own token, others permit purchases free of the fee by charging the transaction fee on sales. Therefore, when choosing a trading platform, pick one that suits your needs and will help you avoid high transaction rates.

 

  • The simplicity of the trading platform. A complex trading platform that you cannot operate will lead to a number of problems that can even cause you to lose your money. Many platforms will let you open a demo account that will help you practice and familiarize yourself with the platform before investing your money. If you are investing for the first time, choose a trading platform that is easy to use.

 

  • The number of cryptocurrencies. There are about 1300 cryptocurrencies on the market such as bitcoin, there and altcoins, and before choosing the one you want to invest in, you should carry out a lot of research and see how many currencies the platform deals with. Many trading platforms will offer just a handful of options. However, these options are found on most platforms and hence are said to be peer to peer. Look at the market and study the trends before investing in a currency. Ensure that the trading platform supports all the cryptocurrencies you want to deal with.

 

  • Mode of purchase. This varies from one trading platform to the next. These methods of purchase, as well as withdrawing, include credit cards and debit cards, PayPal or bank transfers while others only use cryptocurrency for purchase. Some platforms accept fiat currency to allow you enter the market if you do not have any cryptocurrency. Also, take note of how long the platform takes to process the transactions. Find a payment method that will help you save your money.

Before investing your hard-earned money ensure that you carry out thorough research. You can seek advice from experienced traders on the trading platform to invest in. There are a number of good cryptocurrency trading platforms such as the Arcane Bear that can help you steer your trading in the right direction.

 

5 Tips To Trading On The Stock Market With Trade Direct 365

Trading on the stock market is one of the best ways to grow your money over time. If you are new to trading, however, putting your money on stocks can seem intimidating and overwhelming at first. For you to succeed you need to trade with the best. TradeDirect365 is the leading contract for difference (CFD) provider in Australia. At TradeDirect365, you are guaranteed of low trading costs on an excellent platform.

Let’s look at 5 tips to trading on the stock market with TradeDirect365.

  1. Expert Knowledge

Knowledge is an essential component in the contract for difference markets. Many inexperienced traders have lost significant sums of money because they assumed that they can trade by chance and be successful.

To succeed in CFD trading, you will need to invest your time to learn the market. TradeDirect365 will provide you with expert knowledge and dependable support. With professional, friendly support during trade desk hours, free live chats from Monday to Friday 9 am to 5 pm, you will increase your knowledge and boost your chances of profiting on the stock market. TradeDirect365 also provides free educational resources and easy to follow ‘how to’ videos.

  1. Easy To Use Platforms

To boost your confidence when trading on the stock market, you need a fast, reliable and easy to use platform. TradeDirect365 has made things simpler for you with the two easy to use platforms. The CloudTrade platform allows you to trade from anywhere in the world while the MT4 platform will give you the best forex exchange and index spreads. You will also have access to over 400 Australian stock exchange shares, and a one-click demo with $ 10,000 virtual funds absolutely free.

  1. Lower Trading Costs

Trading on the stock market should make your money grow. However, paying huge commissions can slow down your progress. Ensure that you trade on a platform where you spend less money on fees. This will give your investment a better chance to grow. At TradeDirect365, you will get lower trading costs on a quality platform.TradeDirect365 has low margin requirements, and you are guaranteed stop loss orders at no charge unless the stop is prompted.

  1. Industry Leading CFD Provider

Working with an international market leader will ensure you get value for money, competitive prices, tight spreads, and fast execution. The advanced technology and the professional services offered by TradeDirect365 is unparalleled. The founder himself is a professional trader, thus he understands what is truly important to you as a trader on the stock market.

  1. Protection Of Capital

Your money is very important to you. Therefore ensure that you protect your capital investment from loss with a solid risk management plan. TradeDirect365 ensures that your capital is preserved and protected. The pricing is straightforward with no hidden charges. This enables you to save more on costs for each trade giving you better chances of success.

Conclusion

These 5 important tips will come in handy when trading on the stock market with TradeDirect365.Need to start trading on the stock market with TradeDirect365? Open your CFD trading account today and experience the trade direct 365 difference for yourself.

Do You Really Know What There Is to Know about Cryptocurrency?

Cryptocurrency was fashioned off the groundbreaking work of Satoshi Nakamoto, a.k.a. the founder of Bitcoin. To this day, nobody knows for sure whether it is a legitimate individual, a consortium of cryptocurrency brainiacs, or an AI program that created the world’s first mainstream blockchain currency.

The raison d’être for Bitcoin’s creation was simple: Bitcoin totally disrupts existing fiduciary money systems and creates a new system of payment that is decentralised and runs on a peer-to-peer network. Anonymity, cost savings, and frictionless transactions are hallmarks of Bitcoin. While this definition is certainly impressive, it does not do justice to the genius of this cryptocurrency.

The entire blockchain system runs on cryptography – independent of central bank intervention, manipulation, controls, or oversight. Since it is fully decentralised, every node on the blockchain network has control over the network. It cannot be hacked since there is no central database or server for hackers to attack. Whenever any imperfection is spotted, the community corrects it and traces the source of the problem.

Wilkins Finance expert, Hamish Montgomery Jr summed it up with an accurate cryptocurrency definition. According to Montgomery, ‘Cryptocurrency is a digital asset that is transferable between 2 or more parties over an electronic network…The identities of the sender/buyer and the receiver/sailor are kept anonymous.’ The entire definition extols the virtues of the digital currency market.

Are There Unlimited Bitcoin in Circulation?

Here’s the clincher: Nobody has control over the Bitcoin blockchain network. When maximum production is reached on the logarithmic function, a total of 21 million Bitcoin will be in circulation. Presently, there are around 17 million BTC circulating. In order to function effectively, there must be ‘consensus’ within the Bitcoin community. This is nonnegotiable. The value of Bitcoin has whipsawed wildly in the last year. In fact, it traded close to $20,000 until December 17, 2017, before giving up approximately 50% of its value to its current trading level.

Nonetheless, Bitcoin remains the dominant digital currency by trading volume and market capitalisation in the world. And that’s no mean feat. Consider for a moment that there are some 1,569 cryptocurrencies in the world. That does not take into consideration the impending ICOs that are waiting to go public. Presently, there are an estimated 9,500 markets hosting these digital currencies. The dominant player in the arena – Bitcoin accounts for $151.786 billion of all value in the system. That amounts to 43.7% of the total market capitalisation of all 1,569 cryptocurrencies (valued at $347.285 billion) *

If so Much Money Is Invested in Bitcoin, Why Are There Are 1500+ Other Crypto Currencies?

True to form, Bitcoin makes up 43% of all investments in cryptocurrency. Viewed in perspective, this is mind-boggling. There are many other major players in the industry, including Ethereum, Ripple, Bitcoin Cash, Litecoin, Cardano, NEO and Stellar to name but a few. The total market share of these 8 digital currencies makes up approximately $278 billion of the $347 billion market cap of all digital currencies. That’s a staggering 80% top-heavy in the top 8 digital currencies. The other 1500+ digital currencies are fighting for their share of the remaining 20%. At its zenith, market capitalisation was approaching $900 billion – it appears that we are a long way from that benchmark – but you never know…

*The market capitalisation figures in cryptocurrency are subject to change at a moment’s notice. This highly volatile market can rise or fall dramatically within hours. However, the percentages tend to hold true – Bitcoin is the dominant player in the cryptocurrency market.