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Fear: If a fund or fund provider goes under, your money and your gold will disappear.Fact: You'll want to make sure the gold held in your fund is "allocated" – meaning it belongs not to the bank storing it, but to the investors. As long as it is, you have nothing to worry about. If anything goes wrong with the fund, it's your gold, not the fund's or its creditors.Flaw: Not all bullion funds invest strictly in physical gold – some hold a portion of their assets in other precious metals, gold-mining equities or even cash. If you want a pure play in the gold price, you'll want to make sure the fund you buy is committed to holding all its assets in physical gold in a vault. (On the mutual fund side, BMG Gold Bullion Fund does the trick; among ETFs, Claymore Gold Bullion ETF is your best bet.)Fear: Mom-and-pop retail investors have no way to participate in commodity futures markets.Fact: There are retail-focused brokers, such as Chicago-based Lind-Waldock (which has Canadian offices), who can put you in gold futures for relatively little cost – about $100 in total commissions for each contract you hold. A standard gold contract on the COMEX division of the New York Mercantile Exchange is 100 ounces, which means it runs a daunting $130,000; but if you buy on the margin, you're only required to put up about 5 per cent of that – about $6,000. And there is now an actively traded "mini" contract on COMEX of 33 ounces, making entry more affordable.Flaw: First, if you're making margin purchases, you're essentially borrowing the rest, and that's a lot of debt exposure for a small investor. Second, as we saw in the 2008 financial crisis, market panics can trigger margin calls that can make this a risky place to have your nest egg. Remember, you're holding derivatives paper, not the gold itself, so counterparty risk looms in the background. Consider this more a trading tool than a long-term investment product.So why is the dollar doing so well?The main reason is the U.S. economy is doing better — not necessarily better compared to its own historical performance, but better compared to everyone else these days. And when the economy is doing (at least relatively) well, that makes it an attractive investment opportunity: Putting money into U.S. ventures and business is more likely to earn you a better return. But to invest in the U.S. economy you need U.S. dollars. So demand for U.S. dollars goes up relative to other currencies, and the U.S. dollar gets stronger.It is true that natural gas has been a more affordable heat source than oil for Americans in recent years. The federal Energy Information Administration (EIA) reports that the average American homeowner will pay only about $732 to heat their home with gas this winter season (October 1 through March 31) versus a whopping $2,535 for oil heat. While the price of natural gas has remained relatively stable in the last few years, oil prices have been high and rising thanks in large part to continued unrest in Middle Eastern oil producing countries. Just two years ago the average winter home oil heating bill was $1,752.Fact: Heating oil is a clean fuel.Today, oil produces almost zero emissions and the latest oil system technologies 'reburn' fuel, lowering emissions even further. Developing technologies are also embracing lower sulfur oil blends that, when mixed with biofuels, create an even cleaner heating oil option. And, if a heating oil system is properly maintained, it burns cleanly. Any soot that it creates remains only inside the tank. With a methane content of 95%, natural gas system losses account for 18% of total global methane emissions, a powerful contributor to global warming and climate change.
Volume on the New York Stock Exchange was moderate, with 983.20 million shares traded. Decliners outnumbered advancers by roughly a 2-to-1 margin.Wall Street sprinted into the latest week hoping to extend the powerful rally in place since the November election, an upsurge that intensified mightily last week, when the major large-cap indexes all surged to all-time highs in a buying frenzy unleashed by expectations that the President-elect and his incoming Administration would push hard for a massive infrastructure spending program, reduced regulations, and popular tax cuts.
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It may not break new value records doesn't mean you shouldn't possess any gold. Truly, gold has been an awesome fence against both swelling and poor monetary execution. With proceeded with shortfall issues in Europe and the U.S. furthermore, a danger of a Chinese log jam, it's conceivable gold will rise once more, says Stephen Lingard overseeing chief of Franklin Templeton Multi-Asset Strategies. "Gold is an extraordinary support in this environment and that is the reason we've seen such solid execution throughout the most recent couple of years," he says.
Nancy Gibbs, the magazine's overseeing supervisor, uncovered Trump as the champ on the "Today" demonstrate Wednesday, with his presidential opponent Hillary Clinton chose as runner-up.