Investing in Real Estate or Commodities?

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The world economy has continued in recent months to be massively unpredictable, from sure signs of recovery to those also indicating impending financial doom, global markets continue to be inconsistent and as such can be a dangerous place for experienced investors, let alone those new to the game.

By placing a large amount of your capital into the private equity marketplace, you can take advantage of a wealth of experience which means you will stand a far greater chance of achieving a healthy, equitable return following the conclusion of any investment period.

Two of the most popular areas which are invested in through the private equity marketplace are real estate and commodities.

Real Estate Investment

It is common knowledge that the best time to invest is when the market is at its lowest, as this is the time when huge returns are more likely as the market begins to grow. Real estate can however be a volatile animal due to fluctuations in the market as well as the lengthy investment periods involved. This is offset however by the possible rewards on offer for those who play the “long game” in terms of real estate investment, as well as the wide range of possibilities which are on offer to those involved with real estate investing.

Capital through the private equity marketplace is placed into a range of businesses who will look to take advantage of significant markets, be that renting, sales or other commercial opportunities. Each area has its pros and cons, be sure to explore these and be satisfied that your needs as an investor will be met, as well as understanding the short and long term potential of such investments.

The Commodities Markets

Even more unpredictable are the prospects when you invest in commodities. Such activity has led to the huge increase in popularity of platforms such as spread betting as an alternative to the traditional stocks and shares trading market. Investing in commodities is worthwhile if you are aware that there is likely to be a growing trend towards a certain commodity, ideally where demand will be far higher than supply to enable you to make the most of any investment.

One key consideration with commodities investment is natural occurrences, such as the weather. For example, a flood in a prolific diamond mine may considerably diminish the ability of distributors to get products to the market. While this could work in favour in terms of the supply and demand balance, it is more likely to lead to massively reduced confidence in the product and a substantial loss.

Commodities are a huge investment opportunity, yielding high returns and a significant part of the private equity marketplace.

Dealmarket is an online private equity marketplace specialising in managing and finding investors for a number of companies.

Best Practices In Commodities Trading today

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The best practices in commodities trading are designed to promote professionalism in investment to the letter. Some of the basic ideas that have made investors on commodities very successful all aim at one simple thing – to prevent loss.  If at all you can be able to prevent losing then you can stand to be counted as a very good commodities trader even if you do not make profit. Surprisingly, the best practices in trading commodities are very simple to adhere to and they are indeed very effective. The following are some of the tips.

  • Live within your means

As much as ambition in financial trading is part and parcel of the success story of any investor, there has to be some moderation on how you invest your money. It is very important to make sure that the commodity you are trading or have chosen to trade on is affordable on your part. The use of leverage particularly for risk averse investments has detrimental consequences if things go wrong for you.

  • Be financially technical when making investment decisions

The process of trading commodities is technical financially and every decision that you make should be based on informed financial principles and concepts. Technical analysis of the market is also very significant in making informed investment decision. There are a lot of ways that you can use to analyze the market technically but in most cases it is widely advised that you explore the service of a financial expert on the same.

  • Trade with your mind and not your heart

Objective trading is one that is driven fundamentally by facts and realities of the financial environment in which you are trading your commodities. The need to remain stable in your trade endeavors is very significant in informing whether you will make any gains or not. Before you participate in any investment you need to analyze the factors very objectively and reduce any chance your decision is clouded by your current emotions or the emotions of others.

  • Find a good brokerage company

The broker is basically the intermediary between the market and the trader and the significant role played by the broker in making sure that success is realized in commodities trading is a well documented fact. The best approaches in getting the best brokers are all based on a good and objective-based analysis of the available provider to determine who will suit your investment ambitions and plans be

Michael Hastings is an editor at How to Trade Commodities where he specializes in gold and Silver Trading. learn more

The Virtual Currency Market: An Introduction

Virtual currency is creeping its way into every facet of online social media and networked gaming sites. For those who have not yet heard of online currency, it is a reference of value specific to a certain social networking site, virtual world or online gaming site. Online currency is used within these sites to purchase virtual products or services and can be accumulated by various means or simply purchased using real world currencies. Virtual worlds in particular have their own economic systems and virtual currencies. For example in Second Life, avatars can purchase land, homes, goods and even clothes to increase their status and game prospects. Some virtual currencies are based on time, which is measured against gaming activities in order to accumulate a certain amount of points and virtual currency.

Virtual Currency and Social Media

Virtual Currency is increasingly becoming an important revenue driver in social media. For example social media giant Facebook receives around 20% of its total revenue from online gaming company Zynga, who operate the highly successful Facebook games FarmVille, CityVille and more. Virtual goods, and hence the need for virtual currency markets, is increasing every day, particularly in Asia, Europe and America. In the past, only dedicated online gamers would spend money and virtual currency on virtual goods and services, although because of the popularity of social networking sites like Facebook and MySpace and the appeal of the games they support, this is all changing.

Virtual Currencies in the Real World

Today the virtual is creeping into the real world. The global virtual currency Ven, which is used by members of the invitation only social network service Hub Culture, combines the virtual and physical world. It allows members to buy and trade knowledge, products and services using virtual currency as well as participate in virtual currency exchange. It was the first ever virtual currency to be used in the financial markets and in trading both commodities and carbon credits.

Virtual Currencies and Tax

In latest news, rising demand for virtual currency games and participation in virtual worlds has caught the attention of governments and tax authorities who are interested in the conversions of virtual currencies to national currencies like the US Dollar. Players use online auction websites, virtual currency platforms and social media companies to sell virtual currencies that have accumulated. At the moment tax regulations are lagging behind developments in online gaming and virtual currency games and at the moment social media companies that exchange virtual currencies in international transactions are unsure if and how virtual currency will be taxed.

Penny Munroe is an avid writer in currency market trends. Her topics range from choosing the best cfd trading brokers to tips on using metatrader 4 trading platform.