PayPal Announced The Official Guide on Debit Card Withdrawal Features

PayPal Announced The Official Guide on Debit Card Withdrawal Features
PayPal has finally announced the official guide since my previous blog post on withdraw PayPal money fund directly to Visa® branded credit, debit or prepaid card in 26 countries. I saw that button guide when I logged into my PayPal account few days ago. Below is the excerpt I got from the eBay Singapore site:

We’re pleased to announce the launch of a new withdrawal feature, allowing you to transfer funds from your PayPal account to your Visa® branded credit, debit or prepaid card. This new feature will enable you to gain convenient access to your funds and is available in 26 countries, including Malaysia, India, Indonesia and the Philippines.

It is 3 easy steps to withdraw the fund:

This withdrawal method will charge at US$5 per withdrawal transaction and PayPal will completes the transfer in 5-7 workings days, but also depends on your Visa® card issuer’s policies on the processing time. The minimum withdrawal amount is US$10. Take note that the current withdrawal method is available to Visa® branded credit, debit or prepaid card ONLY. Please check with your cards whether it is fulfill the above requirement. There is no indication on Master branded cards. It is either we get our Visa card soonest possible or wait for them to announce on that later. Since I have done all the necessary way to get my US Bank account, so, I didn’t link up my PayPal to the debit card.

To find out how does these process works (I need to understand this as I need to update the latest news on PayPal to my workshop students.) Hence, I have spent about 3 hours to read through some bloggers post on their experience on withdrawal. Most of them did some of the checking on which bank cards allow them to withdraw. In fact I think they are quite confused by now as some of them able to withdraw and some of them not. I thought of putting up a summary on which bank card can use and which bank card cannot use for your easy reference. If you read the guideline above carefully, you will realize that among the 8 banks which offers debit cards in Malaysia, only 4 2 can use for withdrawal at the moment, there are:
1.Public Bank Visa Electron Debit Card
2.Al-Rajhi ATM Debit Card i
3.UOB ATM with VISA Electron ??
4.TuneMoney.com VISA Debit Card (Read my review - the latest and the fastest!)
The other 4 - 6 banks which offer master debit cards are not able to use for withdrawal at the moment.

1.AFFINBANK Debit MasterCard
2.Ambank NexG Debit Card
3.MOL Freedom debit card
4.Alliance Bank International Debit Card
5.BSN Matix Visa Electron
6.Maybank Visa Debit Card (Read my review)

For credit card withdrawal, you might want to check out this post from Limadang’s blog. According to him, it’s not all credit cards able to withdraw PayPal fund.

However Bank Negara set the ability to withdrawal availability to only International Banks like HSBC or Standard Chartered Bank.

Withdraw Paypal funds with debit cards or credit cards

Another good news to international users and Malaysian specifically who actively running online businesses and making money online. After withdrawing Adsense earnings via Western Union was introduced recently, Paypal took turns by adding a new option to withdraw Paypal fund; that's via local credit cards or debit cards which have Visa and Mastercard logos on them.

Previously Paypal users need to use debit card like VMI card to withdraw their funds. This new option is way much better than the previous method because the cards are recognized, hence reducing the risk of getting their account frozen. For each transaction you will be charged $5 with minimum withdrawal $10. Daily maximum withdrawal is $500.

Take a look at your Paypal account and let's hope every country has this option.

How to Withdraw PayPal Funds Using UnionBank's EON

I was thinking it could benefit readers if I share information on how to withdraw funds from PayPal using UnionBank's EON account. First you need to know if you are already a verified user of PayPal. If not you can follow these steps:

1. Log in to PayPal. Click "My Accounts" tab.
2. Click "Profile" link and select the "Add/Edit Credit Card" menu.
3. Click "Add a Card" and provide the needed information, then click "Add Card".
4. Review the information and make sure it's correct. Click "Save and Continue". You’re EON account will be deducted $1.99, don’t worry, this amount will be refunded on your first transaction. It takes at least 4 days for the transaction to appear in your account.
5. Login to your EON online account and check for the transaction information. To login, click the "EON Cyber Account" link on the home page. The first 4 numbers before the PAYPAL text is the 4 digit PayPal code. Take note of it.
6. Login to PayPal and on the "My Accounts" tab, click the "Confirm my debit or credit card" on the "To do list". Enter the PayPal code and click "Submit".

You are now a verified user and you can proceed as follows:

1. Log in to PayPal.
2. If you haven't added a bank account yet, click the "My Account" tab. Then click "Profile" and select "Add/Edit Bank Account".
3. Click "Add button" and provide the needed information. Union Bank's bank code is 010419995.
4. Click "Continue". On the review page make sure all information is correct.
5. Click "Add Bank Account".

You have just added a bank account where you'll depositing your withdrawal from PayPal. To withdraw login and do these:

1. Click "My Accounts" tab.
2. Click "Withdraw" link. On the next screen click "Withdraw funds to your bank account". Provide the amount and select the bank you added.
3. Click "Continue". Review the information and make sure it’s correct.
4. Click "Submit".

At this point you have just withdrawn money from PayPal. If everything goes well you can expect your withdrawal to be reflected in your EON acount in at least 4 business days. That’s it; enjoy your hard earned cash.

Three Methods To Withdraw Paypal

Withdraw paypal? It’s may be easy if you come from U.S., Australian, Austrian, Belgian, Canadian, Danish, Dutch, Finnish, French, German, Greek, Hong Kong, Irish, Italian, Japanese, Korean, Mexican, New Zealand, Norwegian, Portuguese, Singaporean, Spanish, Swedish, Swiss, Taiwanese, or U.K because you can withdraw paypal directly to your local bank. Click here to see countries list that can open paypal account. So if my countries not in the list how I can withdraw paypal, shah? Ok… I will tell you. There are three methods that I know how you can withdraw paypal.

1.Selling your paypal fund to some one from your countries for cash. This method is the easy and fast as I now but is it legal? Paypal will freeze your paypal account if they caught you selling paypal.
2.Get a debit card that can be used to withdraw paypal. You can withdraw paypal to debit card and then withdraw your funds from ATM machine. Here a list of debit card that you can use for withdraw paypal:
1.» Accent Card Visa - This card issue by Tomato bank. Funny name right? The card price is USD 50 or RM 170 for Malaysian. Accent Card Visa can be used for withdraw paypal because this debit card has integrate US bank facilities. There are some fees for most transaction. You can check out this debit card here. I has put more info and how to used it in my free paypal ebook, Paypal Secret.

2.» Virtual Money - I’m not sure which bank issue this card. They said this is ATM card. So you can just use it for withdraw paypal at ATM. The card price is USD 25.00. Cheaper than Accent Card Visa right? You can read more about this card in my free paypal ebook, Paypal Secret.

3.Apply a US bank account. Malaysian can withdraw paypal to US bank. After 911 tragedies, it’s hard for non resident to get US Bank Account and as far I now it’s almost impossible. Yeah that what I heard. Now I tell you how you can open US Bank Account without have US address and SSN. As far I now there are two banks that you can apply an account.
US Bank Account For Withdraw Paypal
Now I tell you how you can open US Bank Account without have US address and SSN and then use it to withdraw paypal. As far I now there are two banks that you can apply an US bank account for withdraw paypal.

E*Trade Financial
I has been used E*trade brokerage account to withdraw Paypal account before and there are no problem. The benefit of E*Trade brokerage account is:

1.Easy and free. you just need photocopy of your passport or government-issued identification card.
2.FREE VISA Platinum ATM Debit Card.
3.You can get a VISA debit card without deposit USD 1000.
4.Free check book.
5.Can be used to withdraw Paypal, stormpay, moneybooker, 2Checkout, etc.
6.Have online banking system.
E*trade account is free to apply. ATM withdraw is also free. E*trade will not charge when withdraw and ATM also not. If the ATM charge you, e*trade will pay back to your account. There are Account Service Fee (ASF) that will be charged quarterly, USD 40 per quarter. That means you will be charged USD 40×4=USD 160 per year. But for the first year, you will not be charged. 2nd year and onward you will be charged. But if you meet one of e*trade condition, you will not be charged. For more information, please visit here.

Where to apply and how to apply?

You need to fill in 2 form.

1.E*TRADE Complete Investment Account Application
2.W-8BEN Form — Certificate of Foreign Status of Beneficial Owner for U.S. Tax Withholding

How to fill this form? Please read E*Trade Bokerage Form Guideline and W8-BEN1 Guideline.

HSBC
The second bank I know that offer non citizen to open US Bank Account that you can use to withdraw paypal is HSBC bank USA. Yeah, the most famous bank right.

For HSBC you need to email them and ask them how you can open an account with them. Click here to contact HSBC Bank USA . After that they will email you ask some question. Answer the question honestly. If they satisfied with your answers, they will send the kit to you.

After you get the kit, fill in the form and go to HSBC branch in your country, like me in Malaysia, I must go to any HSBC branch in Malaysia for verification process. After that mail back the form with document they need to HSBC Bank US.

Walla…done. You will have HSBC Bank USA account and use it to withdraw paypal. You will get HSBC debit card and you can use HSBC debit card to withdraw your paypal money in almost any ATM in the world. Cool right.

Update: Get free paypal ebook title Paypal Secret

How to Use a Debit Card on PayPal

With more than 100 million member accounts worldwide, PayPal has become a popular way for buyers and businesses to send and receive money online. One easy way to ensure the timeliness of your PayPal transactions while keeping track of your checking account is by using your debit card.

Step 1
Create a PayPal account by following the step-by-step instructions from the "Sign Up" link on the PayPal website. Click the "My Account" tab after you have created your PayPal account.

Step 2
Add your debit card information and bank account information from separate links under the "Profile" tab.

Step 3
Click the "Send Money" link to pay for purchases or services as long as the person/business you are paying has a PayPal account. Funds will come out of your checking account, and all transactions will be visible from the "My Account" tab.

Step 4
Click the "Request Money" link to send an e-mail invoice to the person/business who has purchased goods or services from you. Upon payment, the transaction from new funds will also be visible from the "My Account" tab.

Step 5
Add funds to or withdraw funds from your bank account from separate links under the "My Account" tab.

Reviewing your current finances

Keeping a regular eye on your personal finances will help you make the most of your money. Reviewing things like your bank accounts, mortgage, pension and savings will also help make sure they're still right for you. It will also alert you early to potential financial problems.

Check your income and expenditure
It's a good idea to regularly check whether your income is:

•enough to leave you with money to spare
•only just enough to cover your spending
•not enough to cover your spending, so you've got a shortfall
You can use the online budget calculator on the Financial Services Authority (FSA) 'Moneymadeclear' website to check your outgoings against your income.

If you've got money to spare, look for savings/investments options that are suitable for your circumstances and will give you a better return.

If you have a shortfall you'll need to take action to reduce your outgoings and/or increase your income. If you're worried about debts you can get free advice.

Things to watch out for

The late payment trap
Your statement will show that you must make a payment by a certain date each month. If you miss it, you may be fined a late payment charge and have your interest rate raised.

An easy remedy: ask for a Direct Debit form from your card issuer. You can then choose to pay off the full balance every month, or the minimum payment, automatically from your bank account.

The minimum payment trap
It's easy to slip into a pattern of paying just the minimum payment each month. But it means, of course, that interest is building up, month after month, on every pound you owe. You will be charged interest on the entire balance – not just the amount still left to pay. If you can't pay the balance off, at least try to pay a bigger amount each month. You can use a repayment calculator from Which? (an independent consumer body) to work out when you're likely to pay off your credit card bill and how much more quickly you could pay it off by making a higher monthly repayment – see Related links.

The cash trap
Don't confuse credit cards with debit cards when you're at a cash machine. If you use a credit card to withdraw cash, you'll normally be charged an extra fee every time. You will also start paying interest immediately on the amount you withdraw and the interest may be higher than for purchases. You should also check how your payments are allocated – see Allocation of payments – as this more expensive borrowing may be the last to be cleared when you pay your bill.

The store card trap
Many leading shops and stores have their own cards. They are not the same as credit cards as you can only use them in their own stores or groups of stores. They offer benefits such as extra discounts for cardholders only, and preview days for sale goods ahead of the general public.

Credit card cheques
Some credit card companies send you blank cheques to use, mainly in situations where you would like to use credit to pay but the supplier does not accept credit cards. Credit card cheques are used in the same way as normal bank cheques, but any money you spend using them is added to the amount you owe on your credit card rather than coming out of your current account. This means you will pay interest on it, usually from the day the cheques are used. In addition, you may be charged a handling fee by the credit card issuer (usually a minimum of £2 or 1 or 2%).

Using your card abroad
Before you go, tell your credit card company you may be using your card abroad. Otherwise they may think your card is being used fraudulently and so block your card transactions.

If you withdraw cash or make purchases abroad, you may have to pay a fee and foreign exchange rates. This cost is likely to depend on the value of the transaction. This is on top of any interest or fees you have to pay normally. See our Travelling abroad guide.

Other ways to borrow
Credit cards have their advantages, but they're not always the right choice. If you can't pay for what you're buying and need the help of some extra funds, consider a bank overdraft or a personal loan – see Loans for more information.

Credit cards made clear

Whether you're new to credit cards or already have one or two, this section will explain how they work, what to look out for and what to do if things go wrong. Alternatively you can get a free copy of our Credit cards booklet. You can download or order it online – see Free printed guides.

The UK Cards Association, which represents all major UK credit card issuers, also has a guide to help you understand how credit cards work. It explains the factors you should think about when choosing one and the best ways to use your card.

What is a credit card?
A credit card is a form of borrowing. You can apply for one from a bank, building society and certain high-street stores. If they accept your application, they (your card issuer) will set you a credit limit (the maximum amount you can borrow).

How does it work?
You can use your credit card to buy goods and services, and you'll get a statement each month showing how much you've spent. You have to pay back at least the minimum amount shown on the statement each month. The card issuer will charge you interest each month on any money you still owe (the outstanding balance).

A credit card gives you the freedom to buy things now and pay later, but usually at a cost – see Credit card charges.

Your card
The card will carry your issuer's name and brand, as well as the brand of one of the card schemes, such as VISA, Mastercard or American Express. You will not deal directly with VISA or Mastercard, but you may do with other card schemes such as American Express or Diners Club. Credit card companies are also likely to run your account (though some companies may outsource some activities to third parties or another company within their group).

Credit card charges
The credit card company will charge you:

•interest monthly on any balance you owe;
•a fee for cash withdrawals, balance transfers, foreign currency transactions or for using credit card cheques; and
•fees or charges for going over your credit limit or for late or missed payments.
Some credit card companies may also charge you a yearly or monthly fee.

Debit cards and credit cards - the difference

When you buy goods or get cash with a debit card the money is taken from your bank account right away. With a credit card you get a monthly bill. If you don't repay the amount owed in full on a credit card, or if you take out cash, the charges are very high.

How debit cards work
Debit cards are linked directly to your bank account. You can use them to buy goods or withdraw cash and the amount is taken from your account right away.

You can also use debit cards to get 'cashback' from shops when you buy goods and also ask for money back from the cashier, although not all shops offer this. The total amount is deducted from your account right away.

When using a cash machine or paying for goods with a debit card you'll need to enter your PIN (personal identity number). When buying goods you usually enter it into an electronic hand held device, but in some cases you may have to sign.

Most bank accounts offer debit cards. Most debit cards double up as 'cheque guarantee cards', guaranteeing that your cheque will be honoured by your bank up to a stated amount.
What happens if there's not enough money in your account?
This will depend on the type of debit card you have:

•if you have a ‘Solo’ or ‘Electron’ debit card the balance in your account is checked before each transaction – if there’s not enough money you won’t be able pay or withdraw cash with the debit card without prior agreement
•if you have ‘Switch’, ‘Visa’ or ‘Delta’ card your account balance won’t necessarily be checked and the payment may still go through
If you go overdrawn the charges you’ll pay will depend on whether or not you have an authorised overdraft arrangement with your bank. If you do, you’ll pay the agreed amount of interest at the end of each month. This is usually much lower than interest charged on credit cards.

If you don’t have an overdraft agreement, or you exceed the agreed limit, your bank may allow the payment to go through but you’ll usually pay much higher fees than if you had an agreed overdraft.

Using a debt card over the phone or internet
Debit cards can be used to make payments by phone or over the internet. In this case you'll need to provide certain details that are printed on your card. Find out more and view an example debit card on the Financial Services Authority (FSA) website.
How credit cards work
A credit card is a form of borrowing. Firms lending money to customers must be licensed by the Office of Fair Trading (OFT) under The Consumer Credit Act 1974. The Act requires certain credit and hire agreements to be set out in a particular way and to contain relevant information for the person borrowing.

Credit cards allow you to 'buy goods now and pay later' - called 'buying on credit'. They aren't linked to your bank account. Like debit cards, they can be used to buy goods in shops over the telephone and internet, with the same details being required. You can also get a 'cash advance' by drawing money at bank cash machines.

Your bank may offer you a credit card, or you can apply for one to any institution offering one. The credit card provider will normally run checks to see if you've had problems repaying debts before offering you one (called a 'credit check').
The risks of using a credit card
Think carefully before using a credit card. If you don't repay your bill in full by the date shown you're charged interest on the whole amount of the bill for that month. The rates of interest - indicated by the APR (annual percentage rate) - can be very high indeed.

If you take cash out with a credit card you're charged daily interest from the moment you take out the cash until the credit card bill is paid in full. This is an expensive way of borrowing money.

Some credit cards also charge you an annual fee simply for having the card.

If you can't afford to repay your credit card bill you could quickly fall into debt.

TRADING THE DAILY CHARTS

Due to restricted time and Internet connection that I have now, I have opted to trading using the daily charts.

Its not as aggressive and thrilling as trading on the shorter time frame but the result is about the same minus the headache. I'm beginning to like daily trading. I need to make decision once in a while and the rest of the time I just hold my position.

On a daily chart, the candlestick is much easier to read and pattern is much clearer. On 13th August I opened 3 position. 2 of which is still holding while 1 has been closed. At the moment all position are in profit.

Daily trading is not for everyone. It took me sometime to adjust on the requirements of daily trading, but once you are there you never look back.

DAILY TRADING - THERE IS NO SPOON

Some people are asking me about the secret of daily trading. The answer is there is no secret. It is there for everyone to see but the question is, can you accept what you see.

Trading the daily chart requires patience, lots of it. That is what most of us lack. Patience. If you look at the longer timeframe charts, you will see that price will stop or hover around certain areas. That is your key point. Always start or stop trading around these key point.

The next indicator I use is CCI. CCI alone is a bit of a headache. So I smooth it out with MA. With the MA, I can see the direction of trade clearly. People say MA is a lagging indicator but I dont want to be early going to a party. I like to enter when the party already started.

The last advice is, there is no such thing as holly grail. You just cannot win all the time. The best that we can do is try to win as much as possible and lose a little as possible. In the long run, it would be profitable enough to stay trading. Otherwise you need to find another business to run.

Market Reaction To Earnings Announcements

Market Reaction To Earnings Announcements

I found on CXOAG this post that addresses the issue

Earnings Surprises and Future Stock Market Returns

The post reports about the study

Aggregate Market Reaction to Earnings Announcements

The authors investigate the relationship between earnings announcement surprises and market returns on the days surrounding earnings news. The analysis identifies a negative relation between earnings news and market return that persists beyond the immediate announcement period, suggesting that market participants do not immediately fully impound these future market return implications of aggregate earnings news.

There may be a considerable degree of inefficiency in the market’s processing of aggregate earnings information. Consistent with this interpretation they find that Treasury bond rates and implied future inflation expectations respond directly to earnings news.

Microsoft Corporation (MSFT): Buy The Rumour Sell The News

Microsoft Corporation (MSFT): Buy The Rumour Sell The News

As it happened for Apple Inc (AAPL) and Google Inc (GOOG), Microsoft released very good results, but it was badly hit by the market. It lost 3.36% to $28.18. Amazon Inc (AMZN and Netflix (NFLX) did better after the releasing their results.

Microsoft reported second quarter revenues of $19.02 billion, up 14% year-over-year. The company's earnings per share were 74 cents per share, up 57% from last year and adjusted earnings per share rose 28% to 60 cents per share. Analysts estimated earnings of 59 cents per share on revenues of $17.84 billion.

In the Figure you can see the 5 minute chart.

It seems that investors were waiting for these earnings to download their stocks on good news and probably make the impact on price less significant. However, many had this idea and prices went down quite fast. The trend of this market is down (MSFT lost about 10% from the top) and every rebound is seen as an opportunity to sell. Too bad I closed my short position on the S&P too soon. I was not expecting this speed to the downside.


I like checking on twitter what is being said (my comment between brackets). I think it provides good indications of the sentiment of the more active traders. Who knows may be "tweeting" sentiment could be quantified to build momentum strategies...


- posts record profits, but the stock is still down 5%? (Sorry buddy!!!)
- not certain that the sell off is over, but these are good stocks (never hope...)
- I'd double my MSFT if I hadn't already (be careful don't hurt yourself, don't average just close the trade, it was wrong!)
- just coiling to pop lower again (yes)
- i think this is the time for jumping in
- headed further south...
- MSFT getting murdered
- somehow AAPL and MSFT are being manipulated, no idea how (it is manipulated only when it goes down?)

- look out could reach 26.22
- very disappointing

It seems to me that the majority of traders were looking at the stock from a bearish perspectives. Long guys were in disbelief because they already owned the stocks. Very few considering to go long though.

It is interesting to see what happens after the realease of earnings. Take a look at this post

Emini S&P: Another Setup For A Rebound

Another setup to trade another intraday rebound on Monday. After a performance not exactly exciting in 2009, this system has started a little better this year. It has traded already 8 times in January (6 winners and 2 losers).

Last trade on Thursday was good. This system is on the daily time frame. It is a contrarian system. It enters at the close and sell with a profit target the next day. If it is not filled it sells again with a profit target the day after. It has good results. The downside is that if the market is very directional and does not print rebounds it can take some bad hits (you need to have stop loss).

Is There A Bubble In China?

I read an interesting report about China:
China’s Investment Boom: the Great Leap into the Unknown

The idea is that capital spending in China cannot continue at this rate. The coming slowdown will have global consequences.
Let's see the main points supporting this thesis:
- China' s investment boom is unprecedented with growth highly dependent on capital spending. However, decreasing marginal returns on investment will lead to a pullback in capital expenditures. This can happen in a soft landing scenario or a hard landing one where a banking crisis would occur.
- Credit has played an important role in Chinese growth. Credit has expanded 50% more than GDP. If loans continue at this rate, in 2010 credit to GDP ratio will be 200% (similar to Japan in 1991 and US in 2008). Credit is going to luxury property and stocks, but not much into the real economy.
- Some say that China can afford this level of spending because of the low debt (23% of GDP) and huge reserves. However, the size of debt is understated. There are also other off-balance sheet liabilities that would bring the debt to GDP ratio to 62%. Moreover, inflows of money into China cannot fuel further capital expenditures.
- Capital expenditures went into manufacturing, real estate and infrastructure in the past years. Further expansion will not impact as much on growth as in the past.
- The manufacturing capacity is at developed country levels. The manufacturing base is mature with few areas for further expansion especially in traditional sectors (steel, cement, aluminium, energy). There is excess capacity in many sectors.
- Urbanisation rate is actually low in China. Moreover, the lending boom has boosted housing construction. There is an excess housing construction compared to the household formation. The price to income ratios are at extreme levels.

- China infrastructure is relatively well developed. Economic justification behind latest infrastructure projects is questionable.
- Consunption growth cannot replace the investment boom. Private consumption would have to grow 3 to 4 faster than in the past decade to compensate for the imminent retraction in investment.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

Gold climbed more than 1 percent on Tuesday to trade within striking distance of recent 18-month highs, as a tumbling dollar stirred investment buying ahead of an interest-rate decision by the U. S. Federal Reserve. Silver outperformed gold, gaining 1.38 percent on Comex.

India's gold imports in 2009 may fall to their lowest level since trade was liberalised 12 years ago as high prices have put off buyers in the world's biggest market for the metal, a top importer said on Tuesday. Total imports may fall to 500 to 550 tonnes, one of India's top three gold importers told.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,101.735 tonnes as of Sept 22, unchanged from the previous day.

The euro rose above $1.48 for the first time in a year, and the dollar index fell nearly 1 percent against other major currencies as dealers took advantage of deteriorating sentiment toward the dollar.

Noncommercial net long positions in gold futures in New York at an all-time high of 235,647 lots for the week ended Sept.
15 worried investors as it could spark a long liquidation.

A hedge fund run by RAB Capital that invests in gold has fallen about 17.5 percent since the start of June, the group said, missing a large rise in the gold price because of bad bets. The $35 million RAB Gold fund made the losses between June and August.

Dekel Golan is bullish about the future -- not only are gold prices soaring, but the CEO of Chaarat Gold Holdings Ltd secured funding from China to move the company's mining project in Kyrgyzstan closer to production.

The focus for the day would be on the outcome of FOMC meeting today. We expect precious metals to surge ahead in today's session on weaker dollar.

Expert Analysis for Gold and Silver Futures Trading

Gold turned over 1 percent lower on Wednesday as a stronger dollar dampened the metal's status as a hedge against the falling U. S. currency, even though the U. S. Federal Reserve said it would keep key interest rates at record lows. Silver too followed the fall in gold, paring 1.39 percent from its previous close on COMEX.

IN FOCUS:

The Federal Reserve Open Market Committee (FOMC) upgraded its assessment of the U. S. economy, saying activity had picked up after a severe downturn. The U. S. central bank kept key U. S. interest rates unchanged, and said it would keep rates low for an extended period.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,101.735 tonnes as of Sept 23, unchanged from the previous business day.

Peru gold miner Minera IRL Ltd said on Wednesday it has signed a deal to acquire control of the La Falda porphyry in the Maricunga gold belt of northern Chile, where it plans to begin drilling by the close of 2009.

India gold traders continued to trickle in on Wednesday as the rupee strengthened, making the dollar-quoted asset cheaper, to build up stocks in the middle of the festival season, dealers said.

The precious metals initially received a boost as the dollar fell to a one-year low against the euro. However, the dollar turned higher amid a weakening equities market.

India's gold purchases have picked up as the festive season gained steam in the world's largest consumer of bullion."India continues to buy but I guess other consumers are quite cautious this time around. I don't think people dare to cash in right now especially after the market has bounced back from below $1000," said a dealer in Singapore.

FUNDAMENTAL OUTLOOK:

Gold is expectedto trade sideways to downtoday. The risk aversion in the markets andthe expected weakness in jobless claims numbers to be reported later in the day may provide some strengthtothe dollar thereby pressurizing prices of precious metals.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

Gold: The counter is being range bound at the higher levels between 15750-880. The RSI is in the positive territory and ADXstillindicatesuptrend in the counter, thus any dip above 15650 (trend line support)can be a buying opportunity. Breaching 15890levels can trigger fresh upside in thepricestill 16150.

Silver: The counter looks shakyat the higher levels with close below the 7 DMAand RSI cross below the MA, however support is seen fromthe trend line around 26900. Thus fresh buying can be done only on close above the 7 DMA of 27285.

Expert Analysis for Gold and Silver Futures Trading

Gold: The traded downwards yesterday breaching the trend line support and closed below the short term moving averages. The RSI turned down with fall in prices while ADX gives a negative cross over. Thus the prices are expected to remain side-ways to down and prices can even test 15362 (21 DMA) if prices continue to remain weak below 15650 levels.

Silver: The counter finally moved below the trading range and gave a sharp correction till 26155 yesterday. The RSI dropped significantly with decline in prices, while the +DI and -DI looks conversion. Thus the counter is expected to remain weak as long as it remain below 27100 on closing basis, targeting 25500-600.

Expert Analysis for Gold and Silver Futures Trading

Gold: The counter remained positive in the yesterday’s session but failed to closed above 15600 levels. The directional index is still negative with –DI on the upside, but RSI seems to take support at this levels. Thus prices closing above 15600 can bring in upside movement in the counter, however breaching support at
15425 can trigger further downside till 15250.

Silver: The counter remained positive yesterday, while RSI is seen maintaining around 47-50 levels. In addition there is support at 25600 levels, which prices are maintaining. While ADX fails to give a clear direction. Thus prices are expected to move up to 26200-500 if maintains above 25600 levels.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

Gold ended a tad higher on Monday after initially rising toward $1,000 an ounce following the rise across the broad classes and thereby bolstering its status as a hedge against inflation.

October Silver futures on COMEX finished up 13.5 cents at $16.173 an ounce, about 1 percent up broadly tracking gold's strength.

The U. S. dollar rose against the euro and a basket of currencies despite the rally in U. S. stocks. The greenback dropped against the Japanese yen.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,094.107 tonnes as of Sept. 28, unchanged from the previous business day.

Germany's Bundesbank, the world's second-biggest holder of gold, said it will refrain from big gold sales in the first year of a new central bank gold sales agreement.

Lighting manufacturer Bright International Group Ltd said it would buy gold mines in China for a total of HK$7.41 billion
($956 million) to tap rising prices of the precious metal.

Speculators set record highs for a third straight week in their net long position in U. S. gold - Commodity Futures Trading Commission data. The noncommercial net long position in gold futures on the COMEX division of the New York Mercantile Exchange stood at an all-time high of 236,749 lots for the week ended Sept. 22.

Precious metals are expected to take direction from the movement in dollar and broader asset classes like equities and crude oil. We expect precious metals to trade slightly up in today’s session backed by weaker dollar as investors are likely to switch to riskier asset classes on expectations of strong U. S. consumer confidence data.

Expert Analysis for Gold and Silver Futures Trading

Precious metals remained subdued in the last trading session as they seem to have entered in to a consolidation phase after the recent rally. Gold ended slightly up in a choppy trading on Tuesday as a dollar bounce kept bullion investors largely on the sidelines. Silver futures ended in a negative territory, shedding 0.12 percent on COMEX.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,094.15 tonnes as of Sept. 29, unchanged from the previous business day.

Gold prices are up more than 10 percent so far this year, with the most recent leg higher driven by dollar weakness, technical momentum and concerns about potential inflation.

Gold and gold receivables held by euro zone central banks fell by 58 million euros to 231.9 billion euros in the week ending September 25, the European Central Bank said on Tuesday. Gold holdings fell because of the sale of gold by one euro zone central bank. The ECB said the move was consistent with the 2004 Central Bank Gold Agreement.

India gold futures may tread lower this week on expectations of a strong dollar overseas, dimming the yellow metal's appeal as an alternative investment.

India gold traders continued to stock-up on Tuesday to meet festival and wedding demand as prices stayed near their twoweek low, dealers said. "Sales have been up by one-and-a-half times compared to last month due to festivals. There are good orders below $990 (an ounce)," said a dealer with state-run bullion dealing bank in Mumbai.

The dollar rose against the euro and a basket of currencies and was up against the yen after seesawing on Tuesday.

Gold has opened higher on COMEX backed by a weakness in the dollar after giving a flat close yesterday. We expect this trend to reverse later in the day as the risk aversion and consolidation in the market may strengthen the dollar and thereby pressurize prices of precious metals.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

Gold: The counter is trading range bound since few sessions. The remained positive yesterday taking support at 15450 levels but closed below the trend line only. The counter is expected to continue sideways as there is no clear direction from the RSI and ADX indicates short term weakness with -DI on the upside. Thus prices may remain side-ways between 15425-15600, beyond 15625 prices may move positive.

Silver: The counter remains side-ways since past few sessions, simultaneously the ADX also remains directionless. The RSI however remains stable around 47-50, thus prices picking above 26300 can indicate a trend change. Till then counter is expected to remain range bound between 25750-26250.

Expert Analysis for Gold and Silver Futures Trading

Gold reclaimed $1,000 an ounce on Wednesday, rising 1.5 percent as a weaker dollar helped lift the precious metal to its best quarterly performance since early2008. Crude oil's rally and simmering geopolitical tensions inthe Middle East also supported gold.

Silver outperformed gold in the last trading session, gaining about 3 percent on COMEXcompared with 1.5 percent rise in gold.

IN FOCUS:

India's gold imports in September were provisionally around 35-40 tonnes, up from August but down by more than a quarter from 54 tonnes a year ago, the head of the Bombay Bullion Association said.

The world's largest gold-backed exchange-tradedfund, the SPDR Gold Trust, said its holdings stood at 1,095.327 tonnes as of Sept. 30, up 1.22 tonnes.

Bullion has risen about 7.6 percent in the past three months while the dollar has shed more than 4 percent. After its best quarterly performance since the first quarter of last year, gold has gained around 14 percent so far this year.

The physical market is gathering some support in India as jewelry demand picks up in the run-up to the festive period, but current prices are a stumbling block.

India's gold trade remained quiet on Wednesday as most banks, the primary sellers of the yellow metal, were shut for half- year book closing, dealers said.

Thousands of workers atSouth Africa's DRDGOLDon Tuesday called on the government to revoke its license and kept up pressure on the company to raise wages, with a strike entering its third week. Mexican Silver production dropped to 236,805 kg in July, down 3.4 percent compared with a year ago.

FUNDAMENTAL OUTLOOK:

Precious metals may trade lower in today’s session after a sharp rise in the last trading day. However, the focus would be on economic data from the U. S. Expectations of strong manufacturing data from U. S. and Euro zoneand unchanged jobless claims numbers may enhance risk appetitefollowed by weakness indollarand some fresh buyingin this complex.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

Gold: The counter traded very strong above the trend line and closed higher resisting the 21 DMA of 15733. Thus the intermediate side-ways trend hasended. The +DI have breached the –DI on the upside, indicating anuptrend in prices. Therefore the counter is expectedto remainpositive, on breaching 15750 levels next resistance is seen at 15900-16000 levels in near term.

Silver: The counter indicates strengthwith close above the 7 DMA. The RSI is seen risingfrom the 47 levels, while ADX remains side-ways with no clue on the trend. However the prices are now expected to remain above 26250 levels and march upwards to 26730 levels, breaching which prices can test 26900 levels.

Expert Analysis for Gold and Silver Futures Trading

Gold: The counter is facing pressure around 15700 level, we should wait for the triangular breakout. Prices are more likely to trade between 9 and 21 DMA i. e. 15570 and 15712 respectively. The RSI and MA remain flat with no signal on the direction. If the counter trades below 15570 we can expect it to test 15500 and
15440.

Silver: The counter has been facing pressure on higher levels around 26300 and 26580. Negative stochastic and close below short term MA i. e. 9 and 21 DMA indicates the short term weakness in the counter. We expect the counter to test 25500 if trades below 26000 mark.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

Gold stayed above $1,000 an ounce as the dollar remained pressured after last week's jobs data pushed the currency down broadly on concerns the U. S. economic recovery may not be as robust as previously thought. Silver prices too recovered following uptick in yellow metal.

Non-commercial net long positions in gold futures on the COMEX division of the New York Mercantile Exchange eased to
231,386 lots for the week ended Sept. 29 from an all-time high of 236,749 lots the week before, figures from the Commodity Futures Trading Commission showed. A sudden liquidation of speculative long positions in U. S. gold futures may cap upside in Gold futures.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,096.548 tonnes as of Oct. 4, up 0.1 percent or 1.221 tonnes from the previous business day.

The world's largest silver-backed exchange-traded fund, the iShares Silver Trust, said its bullion holdings nudged down
3.53 tonnes, or 0.04 percent, from the previous day to 8,594.22 tonnes on Friday, the lowest level since late May.

The dollar remained under pressure on Monday morning after falling against most major currencies on Friday. Finance ministers from the Group of Seven industrialised nations said at a meeting in Istanbul at the weekend that too much volatility in the foreign exchange market could hurt the global economy and financial system.

U. S. employers cut a larger-than-expected 263,000 jobs in September while the jobless rate climbed to a 26-year high of 9.8 percent, underlining the fragility of the economy's recovery from its worst recession in 70 years.

Today evening we have ISM Service Index reports from U. S. after the Nonfarm payrolls report disappointed investors last week. Dollar is likely to remain under pressure which may support precious metals during evening session. We are likely to see sideways to up movement in precious metals during the day.

Expert Analysis for Gold and Silver Futures Trading

Gold prices rose toward $1,020 an ounce on Monday on COMEX, gaining more than 1 percent, on a combination of dollar weakness, a turnaround in crude oil prices and lingering economic uncertainty. Silver jumped by over 2 percent on COMEX.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,098.073 tonnes as of Oct. 5, up 0.1 percent or 1.525 tonnes from the previous business day. The holdings rose to a record high of 1,134.03 tonnes on June 1.

Gold prices took some support from a rise in physical demand for the metal, with jewelry sales in India, the world's largest gold consumer last year, recovering ahead of the festival of Diwali this month.

Inflows into gold-backed exchange-traded funds dwindled in the third quarter as investors switched their interest to other products, with the holdings of six funds tracked by Reuters rising only 1 percent. The six -- the SPDR Gold Trust, ETF Securities' ETFS Physical Gold and Gold Bullion Securities, and products operated by Julius Baer, Zurich Cantonal Bank and iShares -- saw inflows of just over 697,000 ounces in Q3, against 995,000 ounces in the second quarter.

The strong rupee was helping offset a sharp rise in dollar gold prices, dealers said. Dealers also report buying from Iran after geopolitical tensions flared up in the Islamic republic last week.

The dollar fell on Monday after a meeting of G7 finance ministers in Istanbul brought no surprises, which the market took as a sign policy-makers are comfortable with a gradual dollar decline as part of global economic rebalancing.

The Institute for Supply Management's non-manufacturing index for September came in at 50.9 compared with 48.4 in August, and was the first time in eleven months the index breached the 50 reading that separates contraction from growth.

Precious metals climbed significantly last day on weaker dollar after IMF urged developed nations to continue with their quantitative easing programs. We expect gold to trade sideways to slightly up in the range of $1020-1025 during the day backed by continued weakness in the dollar.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

Gold: The counter shouted up in the later sessions yesterday from the bottom taking support from the 40 DMA and closed above the triangle. Thus the counter indicates strength in the counter. The RSI is seen improving while there is a positive crossover by the +DI. Therefore the overall move indicates positivity in the counter and breaching 15690 prices can move further targeting 15780 and 15850 in near term.

Silver: The counter rallied up yesterday in the later session closing above the triangle. The RSI is seen steadily improving at the lower levels, however there is no signal from the ADX. But the overall movement indicates upside in the counter above 26000 levels targeting 26700 and 26900 in near term.

Bullion Update and Market Outlook: Nirmal Bang

U. S. gold futures scaled an all-time high at $1,045 an ounce on Tuesday, gaining more than 2 percent as investors piled into the metal to preserve the value of their dollar-denominated assets against erosion by a weakening dollar and inflation.

Silver too followed the rise in gold and outperformed the yellow metal, gaining over 4 percent on COMEX and over 2 percent on MCX. The upside was capped in precious metals owing to the phenomenal rise in rupee against the dollar.

The dollar fell after an interest rate hike in Australia and rising equity prices bolstered expectations that the global economy was recovering. This dented safe-haven demand for the U. S. currency.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,100.514 tonnes as of Oct. 6, unchanged from the previous business day.

U. S. Treasury debt prices dropped amid increased supply of the securities reduced safe-haven demand as the stock market rallied. Benchmark 10-year U. S. Treasury notes dropped 9/32, sending their yields higher by 0.03 percentage point, to 3.26 percent.

European central banks sold 155 tonnes of gold in the fifth and final year of the second Central Bank Gold Sales Agreement
(CBGA), which ended on Sept. 26, data compiled by the industry-funded World Gold Council showed.

The U. S. dollar fell after Britain's Independent newspaper cited unidentified sources in Gulf Arab states and Chinese banking sources in Hong Kong in a report on a possible move to replace the dollar in oil trading. France's economy minister, later dismissed the report as "speculation," saying that a move to replace the dollar "is not on the agenda."

The dollar lost 0.42 percent against a basket of major currencies. The Australian dollar rose as high as $0.8919, and was last quoted at $0.8888.

Precious metals have tremendous support from weakness in the dollar and mounting inflationary concerns in the U. S. We expect precious metals to trade firm in the first half of the trading session. However, dollar may fall further later in the day on expectations of strong GDP number from Euro zone, boosting the prices in this complex.

Bullion Update, Precious Metals Trading and Market Outlook: Nirmal Bang

Gold: The counter have turned bullish after breaching the resistance at 15690 levels and close above all the short term moving averages. The RSI has breached the MA, while ADX indicates bullishness in the counter. Thus one can remain long in the counter at every dips above 15675 levels, as the counter has potential to inch-up higher to 16000 levels in near term.

Silver: The counter is bullish with a triangular break out and closing above all the moving averages. The RSI is ready for a positive crossover above the MA, while +DI has already crossed the –DI on the upside. Thus the counter looks bullish. Prices if maintain above the 7 DMA of 26325, we may see prices inching up to 27600-800 in near term.

Commodity Outlook for Gold by KEDIACOMMODITY

Gold yesterday as per expectation backed down from records hit overnight, accelerating losses as the U.S. dollar bounced and extended gains. Gold opened at 16795 and retreated during the early morning, finding support near 16780. Moderate dealer buying carried it from this level and managed to rally to an intraday high of 16884.

However this move reversed as the dollar advanced and equity markets slumped. Oil prices later tumbled as inventories far surpassed expectations and gold continued to fall, reaching a low of 16752. Light buying near the latter end of the session helped it recover from its lows to close at 16767.Now support for the gold MCX is seen at 16718 and below could see a test of 16669. Resistance is now likely to be seen at 16850, a move above could see prices testing 16933.

Trading Ideas:

GOLD TRADING RANGE IS 16550-16950.

GOLD RETREATS FROM RECORD HIGH 1123$ AS DOLLAR RISES .

BUY GOLD DEC @ 16725-16740 SL 16690 TGT 16762-16788-16805.MCX.

SPDR GOLD TRUST HOLDINGS UNCHANGED AT 1,114.443 TONNES.

ON MCX GOLD HAD GOT SUPPORT FROM THE RUPEE FACTOR WHICH HAD SHOWN WEAKNESS.

GOLD / SILVER RATIO IS AT 63.85. YESTERDAY GOLD FIX $ HAS CLOSED LOWER AT : 1114.75.

Gold glitters more due to dollar decline

The yellow metal has been scaling new heights every passing day and jumped to an all-time high as investors are losing interest in currencies due to their volatile nature. Gold has emerged as a safe investment mode among investors as indicated by skyrocketing prices of the yellow metal.

Prices of other precious metals including silver, platinum and palladium are also on rise and expected to pick up further due to apprehensions of further decline in dollar rates.

Wallace Ng, chief dealer with Fortis Bank in Hong Kong added, “Investors are taking shelter in gold. I see gold rising to $1,300 an ounce.”

Meanwhile, dollar rates declined further under the impact of more than expected rise in Japan’s economy which is the world’s second-largest economy. It has also being felt that continuous depreciation of US dollar may significantly impact global asset prices in the coming days.

Gold prices reported an increase of 0.7 percent to $1,126.07 an ounce due to heavy demand by investors. Gold contract for December surged 1 per cent to a record $1,127.90 an ounce on the Comex division of the New York Mercantile Exchange.

Gold price continue to rise to new highs as dollar tumbles to a 15-month record low

The record-shattering run of gold prices further extended on Thursday when the yellow metal hit a new record-high of above $1,195 an ounce, with the dollar index tumbling to its lowest level in the last 15 months.

On Thursday, gold prices touched $1,195.13 per ounce on the London Bullion Market, after Sri Lanka's central bank purchased 10 tonnes of gold from the International Monetary Fund (IMF) for $375 million.

Inflationary fears, weak dollar, and increasing moves by central banks towards diversification of assets into gold are the key factors that have contributed to the record highs of the precious metal.

With the recent sale of gold to Sri Lanka, the IMF has thus far sold 212 tonnes of gold to central banks. While India paid the IMF $6.7 billion to purchase 200 tonnes of the yellow metal between October 19 and 30; Mauritius purchased two tonnes, for $71.7 million, on November 11.

Commenting on the gold-price-rise scenario, Dick Poon, manager of precious metals at Heraeus in Hong Kong, said: "Everybody is bullish on gold, and everybody is looking at the signal central banks are sending. It's not just India or China, but most of the central banks, as well as funds, have changed their portfolios to include gold. So, everybody is looking at how much money they will invest in gold."

Gold Revisits its 17k Mark

Gold futures retouched the psychological Rs 17,000 mark, hitting a three-week high, as a weaker dollar overseas propelled the yellow metal's appeal as an alternative investment, analysts cited.

The US dollar reported its abysmal depth, touching the lowest in six weeks on Friday after US jobs data disappointed. The dollar index fell 0.6 per cent in comparison to other currencies.

The most-traded gold February contract on the Multi Commodity Exchange (MCX) was trading 0.89% higher at Rs. 17,051 per 10 grams at 2:44 pm. It hit an intra-day high of Rs. 17,054, a level last seen on 21 December.

"Euro has gained, and is supporting gold, range for the day would be Rs. 16,900-17,100", said Aurobinda Prasad, head of research, Karvy Comtrade. Also the rupee rose to its highest level since 15 months after a long period of weakness.

The head of the Bombay Bullion Association claimed that India imported 300-350 tons of gold in 2009, higher than the previous estimate of over 200 tons

Are We have to Pay Credit Card Tax?

In the recent 2010 budget announcement, Prime Minister was announce that there will be a service charge of RM50 a year to be imposed on each principal credit card and charge card and RM25 a year on each supplementary card including those with free for life effective from Jan 1, 2010.

This cause dissatisfaction to many credit card holders because in average, each person hold two to three cards. Some have more than half a dozen, including co-brand cards between banks and retailers, airlines and hypermarkets.

Will customers have to pay the RM50 service tax on principal credit cards or can it be absorbed by the banks that issue them or do government willing to abolish them due to many complains?

Currently there are 9.8 million principal and 1.3 million supplementary credit cards issued according to statistics from Bank Negara. From the soon-to-be imposed tax, the Government will earn about RM555mil every year.

By looking at the figure, it is unlikely that banks will be able to absorb the service tax across the board. It would also defeat the purpose of implementing the tax to promote prudent spending.

Credit Card Tax Payment Date Confirmed

The credit cards tax is to stay & no changes will be done. It is will be according to the budget accouncement last October as it was approved in the parliment recently. Principal credit or charge cards holder have to pay RM50 per card while supplement card holder have to pay RM25 per card.

Starting 2010, new credit card applicants will have to pay the RM50 service tax upfront when they issued with new credit or charge cards.

For existing card holders, the charge will be imposed on the anniversary date of cards. The service tax will be pay through their issuing banks. For example, if the card’s anniversary date is in April, then you pay the tax in starting April 2010 & every subsequent anniversary date.

This clarification was announced by Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah will clear the doubts among the millions of credit card holders in the country. They have been raising queries regarding when they need to pay the tax since Prime Minister Datuk Seri Najib Tun Razak announced the new tax during Budget 2010 announcement last October.

Those holding a string of cards were most eager to know before deciding to cancel some of their accounts.

Is Entertainment Expenses Tax Deductable

For income tax purposes, any expenses incurred in the course of a business will only be eligible for tax deduction if the expenses are solely incurred in producing the business income.

It is important to establish the deductibility of an expense as in the event of a field audit which results in the Inland Revenue Board (IRB) discovering an understatement of tax due to claims on expenses which are not tax deductible, a taxpayer will not only suffer additional tax but also a 45% penalty.

With effect from year of assessment 2004, entertainment expense will only be eligible for 50% tax deduction except for specific circumstances where it will qualify for full deduction.

This article will explain the three steps to determine the amount of entertainment expenses allowable as a deduction.

How Much Points Needed to Pay Credit Card Tax

Credit Card Tax for 2010 is to stay no doubt about it. Credit card industry as a whole has come to a consensus that this tax will be borne by the cardholders and not the banks. Association of banks also confirmed on the tax payment date.

Now, banks in Malaysia are strategising to help customers pay the credit card tax by hoping that they can retain their customers.

Most banks are willing to allow customers to utilise their reward points collected to pay the tax charge. However, some banks said that consumers could easily offset the tax with the many cash rebates offered with their credit cards.

For banks that agree to use points, how much are needed?

Is a Weak US Dollar Good or Bad?

The mighty greenback is no longer mighty. US dollar weakness has been one of the financial markets' strongest trends over the last three months. As the world's primary reserve currency, US dollar fluctuations affect every nation in the world. Since March, the US dollar has depreciated 20% against the New Zealand and Australian dollars and approximately 10% against the British pound and euro. Even the Singapore dollar has risen 6% against the greenback.

There are many reasons why investors are bailing out of US dollars. The improvement in market sentiment has helped to fuel risk appetite and ease safe-haven flows. There were also concerns that the US faced a similar credit outlook downgrade as the UK, encouraging some investors to diversify out of US dollar-denominated assets.

For currency traders, the US dollar's weakness has provided plenty of opportunities, but what does a weak dollar mean for the US economy? As there are two sides of every coin, a weak currency also has its advantages and disadvantages.

Precious Metals as Alternative Investments

Precious Metals as Alternative Investments
Wednesday, November 04, 2009 | Gold, Personal Investing | 0 comments »

Precious metals are considered alternative investments for investors to preserve wealth as they rush for safety amidst the decline of financial asset values. Precious metal resources are rare and finite therefore, have high investment value. The metals include gold, silver, platinum, palladium and rhodium.

Gold is the most popular investment of all the precious metals due to its characteristics and the roles it played throughout human history. Gold is the oldest universal currency and has been used as a medium of exchange for thousands of years. Over the centuries, gold is appreciated for its beauty, rarity and near indestructibility. This article will focus on precious metals as well as gold in particular.

How to Invest in Gold

Historically, gold is perceived to be a safe haven during uncertainties and economic crises as it is considered more stable than other asset classes. It is generally an effective hedge against inflation and fluctuations in the US dollars.

Gold is an investment tool for preservation of wealth and a store of value in times of market volatility. It is an asset diversifier that could lower the overall risk in an investment portfolio.

This article will focus on different ways to invest in gold.

Gold and gold-related funds

Gold and gold-related funds are unit trust funds that allow individuals, corporations and institutions with common investment objectives to pool their money for investment in gold and other precious metals. Professional fund managers then use the pooled money to acquire assets which will help meet those objectives.

Generally, a gold fund invests in gold mining equities and/or gold bullion accounts, while a gold-related fund invests in gold and other precious metals including platinum, silver, rhodium and palladium.

What is the Real Value of Gold?

What is the real value of gold? Gold has industrial uses, especially in the electronics industry where it is used for electrical wiring due to its high conductivity. However, close to two-thirds of its demand is for jewellery, particularly in India and China.

Increasingly, it is being used again as a store of wealth as investors lose confidence in paper money, hedge against inflation or worry about economic and political turmoils.

Money could as well be in the form of sea shells and indeed Pacific islanders used sea shells as money. Before paper money, what constituted money came in many forms – sea shells, salt, leather, copper, silver and gold. Money was used as a store of wealth which could be used to purchase goods and services without resorting to barter trade.

In all of history, only 161,000 tonnes of gold have been mined, barely enough to fill two Olympic-size swimming pools, according to a January 2009 National Geographic article. To be valuable and used as money, it has to be something durable. That would exclude fair maidens as their perceived value in the eyes of lustful men may diminish with age. Still, without the demand of gold from the fairer sex, its value would be much lower.

All That Glitters is Gold

Gold is king, going by the strength of its price, which was trading above US$1,200 an ounce after getting a boost from Barrick Gold Corp's move to eliminate its hedge positions against declines in gold prices. Barrick is the world's biggest gold producer.

The company had sold forward its gold and as such, did not benefit from any increase the gold price. Barrick said its positive view on the gold price prompted it to accelerate the elimination of these contracts ahead of schedule.

Gold has risen close to 40% this year amidst US dollar weakness, central bank buying and investor interest in a low interest rate environment. The greenback has fallen 8.7% against a basket of six major currencies, while the US Federal Reserve has kept the federal funds rate at close to zero since December 2008.

Given the gains gold has seen this year, is there more upside for the precious metal? Analysts are still bullish with UBS AG saying gold may reach US$1,300 next year while Standard Chartered Bank raised its price forecasts for 2010 and 2011.

David Barclay, commodity analyst at Standard Chartered, believes the momentum in gold prices will continue although he expects a correction in 1H2010 when the greenback gains in strength as risk aversion returns.

Diversify Your Investment in Comodities

As a result of the financial crisis, even though most commodities have not been performing well, gold has outperformed the conventional asset classes like equity and bond.

This has prompted some investors to consider commodities as one of their investment asset classes. In this article, we will look into how to invest in commodities.

Bruno H. Solnik and Dennis W. McLeavey in their book titled “International Investments” classified commodities in three major categories – agricultural products, energy and metals.

Examples of agricultural products are fibres (wood, cotton), grains (wheat, corn, soybean), food (coffee, cocoa, orange juice) and livestock (cattle, hogs, pork bellies). Energy products can be crude oil, heating oil and natural gas whereas examples of metal products are copper, aluminum, gold, silver and platinum.

The main reason behind investing in commodities is that they have negative correlation with stock and bond returns. This will provide a good way to diversify portfolio risks. Besides, given that commodities are positively co-related to inflation, they can help investors hedge against inflation.

The Gold Bubble and Bugs

Gold prices have been rising sharply, breaching the US$1,000 barrier and in recent weeks rising towards US$1,200 an ounce and above. Today's "gold bugs" argue that the price could top US$2,000. But the recent price surge looks suspiciously like a bubble, with the increase only partly justified by economic fundamentals.

Gold rose above US$1,000 again in February-March 2009, when it looked like most of the financial system in the US and Europe might be near insolvency, and that many governments could not guarantee deposits and backstop the financial system, because banks that were too big to fail were also too big to be saved.

That panic subsided and gold prices started to drift down again - after US banks were subjected to "stress tests". America's 'Troubled Asset Relief Programme further backstopped the financial system by removing bad assets from hanks' balance sheets, and the global economy gradually bottomed out.

There are several reasons why gold prices are rising, but they suggest a gradual rise with significant risks of a downward correction, rather than a rapid rise towards US$2,000, as today's gold hugs claim.

Indeed, investors increasingly want to hedge against such risks early on. Given the inelastic supply of gold, even a small shift in the portfolios of central hanks and private investors towards gold increases its price significantly.

The recent rise in gold prices is only partially justified by fundamentals. Nor is it clear why investors should stock up on gold if the global economy dips into recession again and concerns about a near depression and rampant deflation rise sharply. If you truly fear a global economic meltdown, you should stock up on guns, canned food and other commodities that you can actually use in your log cabin.

Nouriel Roubini is professor of economics at the Stem School of Business in New York University, and chairman of Roubini Global Economics.

New Public Bank Day2Day Visa Debit Card

Public Bank launched its latest card product, the PB Day2Day Visa Card. The new PB Day2Day Card functions as a Visa Debit card and ATM Card. It is directly linked to the Public Bank Savings Account maintained by the cardholder. Customers can use the card for retail purchases, such as shopping, dining or entertainment at any establishment that accept Visa/Bankcard or MEPS locally or globally, or over the internet. There was a report that saying this card can be used to verify paypal account & also withdraw paypal fund.

With this PB Day2Day Visa Card, customers have the opportunity to enjoy savings while they shop. They can enjoy up to 1.0% Cash Back for Petrol and Grocery transaction for a promotional period of 6 months, up to a maximum of RM30 per month. The promotion will run until 7 December 2009 after which customers will be entitled to 0.8% Cash Back. Customer can also enjoy unlimited Cash Back of up to 0.3% on other retail purchases charged to their PB Day2Day Visa Card.

Beginning at launch, a campaign will be held to award the first 3,000 customers a welcome gift of an Eco Bag when they swipe a minimum RM50 for retail purchases 6 times during the promotion period. Customers are not required to submit any contest entry forms but they are required to maintain a minimum of RM3,000 available balances in their Savings Account during the selection period to qualify.

Below are the details about PB Day2Day Visa Card.

•1.0% Cash Back for Petrol and Grocery transaction (until 7 December 2009). After that 0.8% cash rebate.
•Unlimited Cash Back of up to 0.3% on other retail purchases.
•Maximum rebate of RM30 per month for petrol ang grocery transaction & will e credited to account monthly.
•Accepted at 29 million VISA merchants locations worldwide.
•Internet friendly card.
More details are available at Public Bank webpage.