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These securities offer investors a new, innovative, relatively cost efficient and secure way to access the gold market. All of the securities are backed by allocated gold held in a vault on behalf of investors. They are intended to offer investors a means of participating in the gold bullion market without the necessity of taking physical delivery of gold, and to buy and sell that interest through the trading of a security on a regulated stock exchange. The introduction of exchange-traded gold securities is intended to lower many of the barriers such as access, custody, and transaction costs, which have prevented some investors from investing in gold.

More excerpt:

Why choose Gold?

Gold holds its own in any investment evaluation on its strengths as a hedge against inflation, value in the event of political uncertainties and its traditionally negative co-relation with other asset classes such as stocks, fixed income securities and commodities.

The value of goods and services that gold can buy has remained stable unlike currencies that have seen significant fluctuation. A study spanning a 400-year period has shown that the basket of goods and services that gold could buy over the period has remained the same.

Gold protects your portfolio from volatility because the factors, both at the macro-economic and micro-economic fronts that affect the returns from most asset classes do not significantly influence the price of gold. Just after 9/11, while stockmarkets and bonds crashed across the world, gold held steady and, in fact, rose on that day by six per cent.

For a given level of returns from a portfolio, the risk or volatility can be reduced by adding gold to it. Similarly, crises such as wars, which have a negative impact on prices of most asset classes, have a positive impact on gold prices since the demand for gold goes up as a safe haven for parking funds. It is the only medium of exchange completely free of credit risk as it does not imply a liability for any other entity.

Reading Sources on Gold ETF :

1. ETF Investors Going for Gold
2. Exchange Traded Gold
3. Gold ETFs & how they can make you rich

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by Dana Dratch
Friday, May 9, 2008

If two heads are better than one, do couples have an advantage when it comes to investing?

The reality is that it’s difficult enough for two people to share a closet, much less money styles, financial priorities and investing strategies.

As a result, there are a number of couple-related investing errors that planners and attorneys see again and again.

Investing Mistakes Couples Make

1. Too Many Accounts

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With a lot of couples, investment accounts are spread over a number of banks, brokerage houses and financial institutions.

Result: “It’s a little out of control,” says Karen Altfest, vice president of New York-based L.J. Altfest & Co. “It’s too much for most people to handle.”

Andrew Tignanelli, CPA, CFP and president of Financial Consulate Inc., in Baltimore, sees this often when only one spouse is managing the investments. “What happens to your spouse if you’re not around, and you have money in seven or eight places?” he says.

When he poses that question to couples, either the light finally dawns or one spouse produces a notebook with directions on where all the money is located, he says.

Still, for a partner who is not used to dealing with investments, going on a financial scavenger hunt is going to be a hassle, says Tignanelli. A better alternative: Consolidate investment accounts in one location, he says.

2. One Spouse Deals With the Money Manager and Investment Advisers
Click here to read the full post … »

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Complete removal of price controls by Aug 08

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad has said that the new price of RON97 at RM2.70 does not reflect the full market value, which could be as high as RM3.00-RM4.00 when price controls are completely removed in Aug 08. Based on our own calculations, if crude oil prices stay at the current level of US$125 per barrel in Aug 08, the estimated market rate under APM for RON 97 is about RM3.29 per litre, another 22% rise from the new price of RM2.70 per litre. At RM2.70 per litre, we believe the Government, which has exempted sales tax on petrol, will continue to forego the sales tax revenue under the automatic pricing mechanism (APM)

Source: Affin Investment Bank

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A gift to all Malaysians not even before 100 days BN retains their rulings in Malaysia.

Petrol, Diesel Prices To Increase At Midnight Tonight

PUTRAJAYA, June 4 (Bernama) — Petrol and diesel prices will go up by 78 sen and RM1 per litre respectively at midnight tonight, Datuk Seri Abdullah Ahmad Badawi announced Wednesday.

The prime minister said the new price for petrol at the pump would be RM2.70 per litre and diesel, RM2.58 per litre.

Abdullah told a news conference at his office the Cabinet had agreed on a cash rebate for Malaysian owners of private cars and motorcycles to ease the burden of the rise in the fuel prices.

“A cash rebate of RM625 per year will be given to owners of private cars of engine capacity of up to 2,000 cc and pick-up trucks and jeeps of up to 2,500 cc.

“Owners of private motorcycles of engine capacity of up to 250 cc will be paid a cash rebate of RM150 per year,” he said.

The prime minister said the cash rebate would be given to the owners of the cars and motorcycles when they paid or renewed their road tax.

He said the cash rebate would cover cars and motorcycles for which the road tax was renewable between April 1 2008 and March 31 2009.

The prime minister said the cash rebate would be given in the form of money order at post offices nationwide beginning July 1 2008.

The increase in prices announced Wednesday is the highest ever. On Feb 28 2006, the prices of petrol and diesel went up by 30 sen, with petrol costing RM1.92 per litre and diesel RM1.58 per litre.

The announcement Wednesday is part of the government’s new fuel subsidy scheme mechanism which seeks to reduce the fuel subsidy amounting to an annual RM53 billion.

The government’s move to float the fuel price in accordance with the global market price still makes Malaysia one of the countries with low prices for fuel in this region.

The new prices of petrol and diesel are far lower than the RM5.20 and RM4.22 for the fuels, respectively, in Singapore which has floated the prices as well.

The prime minister said the Cabinet had decided that the owners of cars and motorcycles excluded from the cash-rebate category would have their vehicle road tax reduced according to the following rate effective June 1 2008:

* Owners of private petrol and diesel vehicles with engine capacity of more than 2,000 cc will have the road tax reduced by RM200.

* Owners of private motorcycles of engine capacity of more than 250 cc will have the road tax reduced by RM50, subject to a minimum road tax of RM2.

Abdullah also said that there would be no change in the prices of liquefied petroleum gas (LPG) and natural gas for vehicles (NGV), with LPG at RM1.75 per kg and NGV at 63.5 sen per litre.

He also announced the streamlining of the diesel subsidy for approved transportation companies, vessel transportation companies and fishermen.

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From Bernama:

EONCAP To Launch World’s First Islamic Debit Mastercard With Paypass

KUALA LUMPUR, June 2 (Bernama) — EONCAP Islamic Bank Bhd announced Monday it has obtained an affiliate licence from MasterCard Worldwide and will launch the world’s first Islamic debit MasterCard card with PayPass payment capabilities this Thursday.

The launch will reaffirm Malaysia’s global recognition for its success in obtaining full EMV (Europay, MasterCard and Visa) compliancy, a global standard to ensure that smart cards, terminals and other systems can interoperate, EONCAP said in a statement.

“It will once again place Malaysia on the world map as an innovator and pioneer in new payment conveniences with cutting-edge technology for the benefit of all consumers,” it said.

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