First there was DoublingStocks .com and now a new site PromoStockPicks.com promises to make investors rich from their stock picks. (It makes us wonder if it’s the same people that created the stock trading robot.) The sales pitch is actually convincing and so are the testimonials; unfortunately, it’s all one big blatant lie.

“The following must be read in its entirety before purchasing and/or using any information contained on PromoStockPicks.com”

We don’t have to say it in our own words because they do a good job telling you in their “disclaimers”. So go read it and save yourself $47. If that’s too much work, here’s an excerpt from the Information Warning and Investing/Trading Stocks section of the Disclaimer.
Read the rest of this entry »

Gold prices have hit an all time high; so, many investors are starting to take notice of silver and its low trailing price as compared to gold. Depending on the source of data, it is hard not to get excited from reading the articles by experts giving out historical price data of how silver at one point reached a high of $50USD in 1980. Compared to today’s price of $16.89/oz, silver is just plain cheap if adjusted for inflation, but before you start loading up silver, let’s take a step back in time.

There is one piece of information that many of these writers seem to leave out when they talk about the highest price ever of silver that was touched briefly in 1980. The real story behind it will also explain the quick tumble soon after.

Do the Hunt Brothers attempting to corner the silver market ring a bell? Nelson and William Hunt were the heirs of H.L. Hunt, the oil tycoon and were one of the wealthiest families in America at the time. They started buying silver as a hedge against inflation in the early 1970s and continued for nearly a decade.
Read the rest of this entry »

It is a known fact that franchise owners usually have a better chance of success as a business operator than an independent start up owner. The likelihood of success can be attributed to a proven and tested business model, existing market brand, support and training from the franchisor. The question is, are there advantages to investing in the public stocks of franchises?

Comparing the actual ownership and operation of a franchise to owning the stocks is like comparing apples to oranges. In terms of just an investment hypothetical, there are some clear advantages. We will take McDonald’s Corporation (NYSE:MCD) as an example.

The start up capital requirement for owning a McDonald’s franchise ranges from $500K-$1.6M. It would take a number of years to break even and turn a profit on the money invested. Since it is a franchise business, there are royalty payments to be paid and the time expenditure of running a business can be hefty.
Read the rest of this entry »

Investing in a Direct Participating Program (DPP) like oil/gas drilling is out of reach for most small investors based on the accredited investor requirements. The rules and regulations imposed by the government may appear to favor wealthy investors over the less funded investors. Fortunately, there is a way for individuals to invest in partnerships similar to a DPP, but without having to be an accredited investor.

“Publicly traded partnerships (PTPs), often known as master limited partnerships (MLPs), are limited partnerships which are traded on public exchanges. A share in a PTP is called a “unit,” and PTP shareholders are known as “unitholders.” PTPs can be found on the New York, American, and NASDAQ exchanges, as well as many regional exchanges.” – National Association of Publicly Traded Partnerships

PTPs/MLPs are a unique class of investments and currently contain a small group of tradable securities numbering a little over 80 companies. Few investors even know about them except for maybe the high profile or new issues like The Blackstone Group L.P. (NYSE:BX).
Read the rest of this entry »

Our U.S. economy for the past seven years can be summed up in two words, “It Sucks”. Hard earned money is being sucked from the American consumers because of higher costs for goods and services. There is only one thing that should be on an investor’s mind and that is capital preservation.

Many so called experts and analysts did not think gold would be where it’s at today, or oil reaching $100 a barrel or how weak the U.S. dollar would become. Today, smart investors are laughing all the way to the bank because they were dismissed as fools a few years ago.

Savvy investors foresaw the dire economic situation and hedged their portfolios with oil, currency and gold investments. By doing so, in a balanced portfolio they have offset any losses in their stock portfolios. Their buying power is not affected because of the profits from the oil and gold investments. They are also paying less taxes this year.
Read the rest of this entry »

Socially responsible investors select investments based on a company’s contributions for the social good. Businesses that are involved in things like alcohol, tobacco, and weapons manufacturing are often avoided for companies that are good to the environment, practicing workplace diversity and increasing product quality and safety.

Morally responsible investing on the other hand, takes the “social good” aspect to new extremes as in faith based funds –mixing in an investor’s morals and religious beliefs. One such example is The Timothy Plan, a collection of mutual funds built on the basis of Christian ideology and principles.

“The Timothy Plan® family of funds are based on the biblical stewardship principles of I Timothy 5:8, 22. The Timothy Plan mutual funds screen out companies that are involved either directly or indirectly in abortion, pörnography, anti-family entertainment, alternative lifestyles, as well as those directly involved in the production of alcohol, tobacco or gambling.”

Read the rest of this entry »

Diamonds may be a woman’s best friend, but treat them as lucrative investments and they can become your best friend as well –no matter what gender you are. Specifically, we are talking about colored diamonds. While colorless diamonds are rare gemstones, only 1 in 10,000 diamonds are colored and come in different shades like yellow, pink, blue or red.

The international colored diamond market may not be well understood or appreciated by the average investor. So much so, that Diamond Circle Capital Plc of the UK delayed its plans to raise about $400m for the world’s first publicly traded diamond fund last summer. They saw a potential there, however, may have postponed amidst a poor investor reception or lack of interest.

Alternative investors can look at this as an opportunity to be one step ahead of the mainstream crowd and build their own colored diamond portfolio. There are plenty of reasons why these diamonds make a good investment.
Read the rest of this entry »

If you are looking for a way to participate in the rising silver and gold markets without risking your hard earned money, there is a solution. Everbank has a product called MarketSafe Certificate of Deposit. There is no risk and you literally have nothing to lose.

“-market-driven returns combined with the financial security of traditional CDs. Your returns will be based on potential market gains of gold or silver while your deposited principal remains 100% safe.”

How it works: the returns above your deposited principal will be based on the spot price of gold or silver from the reference indexes. If the market performs well, you will receive upon maturity a market upside payment and 100% of your deposited principal. If it declines, you will receive 100% of your principal back.
Read the rest of this entry »