It was originally introduced in the year 1979 in competition to other bullion coin, which was rare and expensive. But the gold coins minted during the period from 1979 to 1981 have only .999 essence of pure gold in them, unlike the latest Maple leaf gold coin of .9999 essence purity. The coins are privileged and have proudly gained legal royal status in the country. The real value of these coins is much more than its supposed market value. The Maple Leaf gold coin are the true mark of symbolism and therefore very unique.

In the year 1994, gold coins worth $2 dollar per coin market value were minted. Majority of these coins were used in jewelry making. But it was not a successful venture and therefore stopped.

Some special features of the Maple leaf gold coin are as follows:

The maple leaf gold coins are popular all over the world; the distinct trademark maple leaf design is recognized for its unparalleled purity.

The first coins, which have 99.99% purity of gold, therefore these coins are worth preserving.

The gold ornaments made from these almost 100% gold metal is really worth their money and more.

Gives maximum value for liquidity and maintenance.

The Canadian government guarantees the purity and worth of these wondrous yellow metal coins.

The coin is embodied with the maple leaf on one side and the picture of Queen Elizabeth 11 adorns the other side.

The Canadian prides reflects the glory of its country, which is famous for its independent spirit, freedom of expression, secure and stable policies.

The market value of maple leaf is priced on the current value in market. This spot price for gold (which is changing in nature) is reported in all main news bulletins, national television network, radio and even online news portals.

However, the denomination of the coin does not affect its quality. Every American Eagle gold coin is made from pure gold and has to be produced within the USA . The gold coins do contain an alloy of silver and copper, however, but that is to ensure that the coin is more resistant to wear and tear. The U.S Mint as well as the Congress authorizes all the American Eagle gold coins.

The market value of these coins will depend upon the authenticity of the gold coins. According to the recent statistics, the set of values of the American Eagle gold coins that an individual could buy as in January, 2006, are as follows:

Face Value: $5, Market Value: $75

Face Value: $10, Market Value: $150

Face Value: $25, Market Value: $300

Face Value: $50, Market Value: $600

The price of gold, however, depends upon its market value which fluctuates a lot. Thus, it may be that you might get a price that is lower than the ones mentioned above. Remember that the price of your American Eagle gold coin depends upon the value of gold at a particular time.

Now it is obvious that you want to know how the American Eagle gold coin looks. The obverse side of the gold coin has the figure of Lady Liberty with her torch in the right hand and the olive branch in the left. You can get a glimpse of the Capital building in the left side of the statue. The reverse side of the coin bears the famous image of a male eagle carrying an olive branch to its nest where there is a female eagle with its young. This side of the American Eagle gold coin was designed by Miley Busiek and the other side was designed by Augustus Saint-Gaudens.

We have the record of a very rare Eagle coin that was bought by a coin collector for an astonishing $5 million. This rare $10 gold coin was manufactured way back in 1804. This was a very special coin meant to be a gift for the then American president Andrew Jackson. The coin mentioned above is a rare piece and cannot be considered as being one of the American Eagle gold coins manufactured in 1986.

In 1963 after the assassination of the president John F.Kennedy the coin was changed. It was mainly because the price of silver shot up in 1962 to1963. Because of this acceleration in the value of silver, the coins of 1963 had more silver content than the coins that came out after that year.

In the beginning of 1963 the half dollar coins were being hoarded by a lot of people. The reason why the people were hoarding the coin was because of both economic and the sentimental reasons. People were hoarding the coins, as it was a reminder of the late president John F Kennedy who was really loved and respected by the masses. On the economic front people were hoarding the coin as it was one of the most valuable coin that was being circulated in US at that time.

At present the value of this half dollar coin is worth $4.8141724190. This value is the value of the silver that is contained in the coin. In order to determine this value the dealer will have to go through the following process. First of all they will find out the current prices of silver as well as copper. As the rates are provided in ounces the dealer will convert the weight of silver and copper of the coin in ounces. To find out the value all the dealer has to multiply the weight in ounces of the metals with the present value of copper and silver.

In order to get at the value of the coin the dealer can also melt the coin. Once the coin is melted the dealer will have to follow the same procedure as mentioned above. Once the dealer gets the value of both copper and silver all he has to do is to add up both the values in order to get the value of the coin of 1963.

Compound interest is the theory pf adding accumulated interest or earning back to the principal.  Other terms used interchangeably with compound interest rates include annual percentage rate, effective annual rate, and effective interest rate.  Compound interest generally prevails in finance and economics.  It is worth mentioning that there was time in human civilization when compound interest was considered as the worst type of usury.  Compound interest was extremely condemned by Roman law in addition to common laws of other countries.

The word “yield” signifies a rate of return that is derived from compounding, reinvestment, or varying market value of a security.  Two factors have great effect on compounding: the periodic interest rate; and the frequency with which the interest is compounded.  The frequency of compounding is generally annual, semi-annual, quarterly, monthly, or daily.  The periodic interest rate is simply the interest to be charged for each period.  A nominal interest rate is an annual rate that has not been “adjusted” for compounding.  For example, if Mr. Li invested in real estate in Hong Kong in January of 2008 with an initial capital of $10,000 that pays a yearly interest rate of 4% that is compounded quarterly then the table below shows the value of his property at a given quarter

The yearly interest rate is 4%, which also represents your nominal rate since it has not been adjusted.  To obtain the periodic rate for quarterly compounding, divide 4 (interest) by 4 (number of quarters in a year) and you get 1 or the quarterly ROI.

When an interest is earned by an investor it is converted into a capital.  The process of compound interest entails reinvestment of capital; the dollar earned for each quarter is reinvested.  On March 2008 Mr. Li earned $100 which was added to his initial investment making his new capital for June 2008 $10,100 and so on.

Checking how often interest is compounded is a smart thing to do before deciding to invest in any real property.  Obviously, the more frequent it compounds, the faster you reach your financial goals.  These are basic information you have to know if you seriously intend to maximize the full potentials of your investment.  Also, it can save you with so much troubles and headaches in the future.

The most basic computation in evaluating the rate of return for a real property investment is the simple interest. Calculation of simple interest consists of 3 elements: principal, rate, and time. The principal is the initial amount of investment. The rate, also referred to as rate on investment (ROI), is the interest rate of your investment at a given period of time.

Let me give you an example, Ms. Anne has decided to invest his bank savings worth $10,000 to a newly developed, residential district in Detroit, Michigan. The property consultant mentioned an annual interest rate of 7% after 2 years.

Principal = $20,000 Rate = 5% Time = 2 year

Simple Interest = Principal x Rate x Time

= $10,000 x .05 x 2

= $1,000

In 2 years time, your $10,000 investment will earn $1,000. Your property’s value then will be principal plus interest or $11,000. Obviously this is a simple scenario using simple interest. What if you have 2 property investments that need proper evaluation? Referring to Ms. Anne’s case discussed above, she decided to add more money so that her total annual earned interest will reach $1,500 or 7.5% of initial investment (instead of $1,000). If she expects the interest rate to increase to 9% how much additional money does she need to achieve her target?

Using the same formula:

Simple Interest = Principal x Rate x Time , since we have 2 investment periods, then

Simple Interest (period 1) + Simple Interest (period 2) = Simple Interest (total) , or

Principal x Rate x Time (period 1) + Principal x Rate x Time (period 2) = Principal x Rate x Time (total)

Substituting the values from the table:

(20,000 x .07 x 2) + (2 x .11 x y) = (20,000 + y) x .10 x 2

Solving for y will give you the value of $16,666.67. This means that Ms. Anne has to invest an additional of approximately $16,700 to attain her target.

Another computation frequently used in financing and economy is the compounded interest. Simple interest has lower yield or future value since the interest earned in compound is reinvested as capital. Knowing the fundamental interest calculation can help you make better offer to your clients. The properties you are selling can become more appealing if you can give them an idea how much it will worth after a period of time. If you are on the other side of the negotiation, you can evaluate the property on your own and even verify claims and assertions on a certain investment.

Below are basic points that will have an impact to your cash flow and eventually your real estate investment.  Items found on the cash flow-in are circumstances wherein you expect some cash flowing in to your portfolio.  On the cash flow-out column are obviously items that will result to cash out transaction.

These are just some of the things you need to know that may affect your cash flow management.  The next thing you should do is compute for the sum of all your cash flow-in and cash flow-out transactions.  If the sum of all cash flow-ins is significantly higher than the sum of all cash flow-outs then it is a good investment.

Cash is king not profit.  Even if your real estate has the highest rate of return in your entire investment portfolio, if cash management is not effectively maintained it will eat up your profit over time.  so before jumping into real estate investments, do your assignments first – read good materials, ask opinions of highly experienced people, and check your cash flow.

There are various types of brokers – commodity, insurance, stock, investment, real estate, etc.  It is vital to get a broker that can maximize your investments and at the same time share your common values and personalities.  Below are 4 simple steps you can follow in selecting your broker:

Step 1: Set your goals

Like any other venture it is a must to establish first your targets.  Determine how much are you investing, how much return you are expecting to gain and when do you want to get it, or how much risk you are willing to take.  These are basic questions that need to be answered to give your account executive an idea on what he needs to accomplish with your investments.  When objectives are set, you can evaluate anytime if your investment or broker is doing good or otherwise.

Step 2: Ask around

If you have friends or colleagues who have invested in the past or acquired the service of a broker and can recommend a good one then better for you.  You can also contact authorized government agencies such as the National Association of Securities Dealers (NASD) and other trusted organizations who can suggest good and trusted brokers.  This is also the best time to conduct background checkup of each brokerage firm and their list of representatives.

Step 3:  Make a shortlist

After all those researching and asking around it is now time to list some prospects.  You can schedule a meeting or interview to know more about them – education, experience, personalities, customer references, fees and commissions, etc.  You can do these through phone or in person.  This will initially establish your relationship with your soon-to-be broker.  Tell them about your financial goals or what you know about securities business and the things you want to learn.  Observe how they respond to your questions and if your plans coincide with his or her skills.

Step 4: Look for positive traits

You will be talking, discussing, and negotiating with your account executive majority of the time so it is highly recommended to choose one that you are comfortable working with.  The securities industry is quite complicated may give you some difficulty once in a while.  Do not hesitate to ask your account executive for any information regarding a transaction.  Also, do not be intimidated if you hear a technical term for the first time or not sure what it meant.  This is the best time to inquire and learn a lot from your broker.  He must be patient enough to guide you in every step of the way.  Do remember that every decision of your account executive has an effect to you and your investment.  It pays to know!

People in the investing and financing arena best know what Rule of 72 is all about. If you meet one who does not have any idea of it, then it is safe to assume he is on the wrong side of the world. Rule of 72 is a simple formula for computing the estimated number of years for your investment to double given a fixed annual rate of return. For example, in 2008 an amount of $10,000 is invested by Gary at 10%. It will be doubled using the principle below:

Number of years to double = 72

——————–

Interest Rate

= 72

——————–

10

= 7.2

Dividing 72 by the annual interest rate will give you the approximate number of years for your investment to double. This means that Gary can expect his investment to reach $20,000 after 7.2 years or by the year 2015. Sounds very simple you may think but that is not the whole picture. The following observations are worth knowing to fully understand the Rule of 72:

The computed number is just estimation. If you use a manual calculation or some programs it would give the figure 7.2725 years which more accurate.

It is safe to use the Rule of 72 for interest rates falling between 3% and 12%. The estimation is less precise at higher interest rates. For instance, if the return is 100%, dividing 72 by 100 will give us .72 years where in fact it will double in just one year.

Changes on income taxes, commission, inflation, etc. are not addressed in this rule. If for some reasons the government raised income taxes then your rate of return will also be affected. When this happens, it will be longer for you to achieve the two-fold of your investment.

The interest is understood to compound annually. For return that compounds frequently, then expect to double your property value faster than the computed years when Rule of 72 was used.

In 1494, Fra Luca Pacioli, made a similar theory in one of his published works on Mathematics – Summa de Arithmetica. Apparently, no explanation or derivation was given about the observation.

Knowledge is power. What you do with what you know makes all the difference. The world of investing and personal finance is very exciting and risky at the same time. No matter how accurate the information you got, how much risk you took, there will be times that all you can do is hope for the best and expect for the worse. The Rule of 72 is one tool available to give you an idea, a practical estimation, on what to expect in terms of your investment.

After launching the fund, fresh shares are hardly issued. Shares are usually redeemable for securities or cash until and unless the finance liquidates. Market makers and broker are the parties in secondary market where from investors can obtain shares by buying share in closed-end funds . It is unlike Open End funds, where all dealings ultimately result the fund in creation of fresh shares with redemption for either securities or cash.

The cost of the shares in closed-end funds is determined somewhat by the investments value in a fund, and in some measure by the discount (or premium) by the market that is positioned on it. When the whole values of each security of the fund is divide by the quantity of the shares of the fund, it is known as net assets value, often shortened as NAV. The value of the market fund share is often lower or higher than that of NAV. When fund’s share value is much more than NAV, then it is identified as selling at the best but when it’s down, it is considered to be at a discounted price as compared to the NAV.

Generally, for Closed-end funds, the trading takes place on the main universal stock exchanges. Although Amex is being in competition, the Stock Exchange of New York in US is still dominant. The Stock Exchange of London in UK which is the leading market is the abode to the majority funds.

Close-End Funds Working

Closed-end funds are normally sponsored through the companies that manage fund and also exercise control on the investments done. In initial public offerings, they start soliciting money through investors, for being limited or public. Equivalent to their primary savings, investors are given certain shares. Fund manager purchases securities and collects the money. It all depends and rests on the financial charter that what accurately fund supervisor can put in. He invests some part of the fund in stocks, some in bonds, some in quite specifically mentioned things.

Following points distinguish the Closed-End Fund from Simple Open-End Mutual Funds.

When it starts operating, it is closed for new capital.

Dealings are directly done on the Stock Exchange and they are not redeemed by the fund directly

Ordinary use of gearing and leverage is done to improve return. This is the distinguishing feature of a closed-end fund.

Sometimes the leveraging option is exercised by allotment of preference shares. In that case, there are two kinds of shareholders. Investments are made by common stock shareholders and preferred stock shareholders, when the fund is controlled by issue of preferred stock. Preferred stock shareholders gain from expenditure based on the total assets under management. In the case of common share holders, the case is different and they are charged on common assets rather than total assets.

Analyze the Benefits

The Exchange Traded Funds are associated with a number of benefits. The foremost benefit of these funds is that they are the most suitable investment tools for long duration of time. They are potential enough to add value to your invested money in this period of time. The fees on the annual basis lie just in between 0.2% to 2%. The other advantages include the ease and effectiveness involved in buying as well as selling them. The investors are not needed to have the knowledge of the market trends in the future. The exchange-traded funds are the synonyms of the powerful investment tool that is often accompanied with expansion, the cost that is very low and also the minimum turnover index. Thus, they are able to lure all kinds of investors that include the retail as well as institutional investors. Moreover, these funds are available for long term as well as short-term investments.

Not Free From Risk

The Exchange Traded Funds are not an exception while talking about the risk involved. There is an ongoing process of up and down in the investment that makes it necessary to understand the bottom line of investing in them. There are always some underlying securities associated with all kinds of ETF that should be understood. In the case of index ETF that deals with the individual shares, it is necessary to know about the indices. There are certain items like oil, whose future securities are very difficult too predict. Thus, it becomes difficult to take decision about investment in a particular type of Exchange Traded Funds .

It is a common trend these days that the investors are becoming more and more conscious and responsible in handling their investments by themselves. Thus, they no more require any professional team to manage the process of investment for them. The Exchange Traded Funds are so easy to invest in and provides you the biggest advantage of the market that is called market unpredictability. You never know, when the market value of these funds I going to rise or fall down. The many other popular funds don’t allow you to have this advantage and that too at such fast rate. It is advisable at this point of time, that you should possess the knowledge of the right time for investment in these funds.