No matter what medium you watch or listen to, odds are you're going to hear something about gold. Whether it's someone trying to buy your old gold jewelry, or an online house looking to sell you bullion, point is, it's everywhere.
So I'd like to tackle the issue at hand – is it worth your attention right now?
As of Monday afternoon, gold was sitting at about $1,106 per troy ounce. At this price, it is sitting at a "support level" that was created at the tail end of February. Have a look at the chart:
My thoughts on gold:
As an investment, gold is going to have to go up pretty good in order for the investor to see much return. At $1,100 per "share" its not the cheapest bet on the market. I know what you're hearing on television makes it sound like gold is one of the most solid investments out there, and that's true it's solid, but is it worth your while?
I think of gold not really as an investment, but more of an insurance policy on the market and the economy. Not only that, you won't see wild fluctuations of 20-30% in a day, a big day on the gold market will fetch you (gain or loss) of about 1%. Gold has the rock-hard characteristics of the "old money market" with the potential for more payout per share as compared.
When it comes to the viability of gold as an investment, sure I think it's viable, but I don't think you'll see the gains the hype may allude to.
Remember that in order for you to see a modest 30% return on investment, gold has to run over $330 per share. The only way you'll see big gains at $1,100 per ounce is for the economy to start to unravel.
Beer Wars in South Africa (Eric Dickson)
Who wants a beer?
At the World Cup, in South Africa, there's a major push to supply the hundred of thousands of fans with ice-cold beer.
And we're seeing two different camps emerge...
One camp, Anheuser-Busch InBev (BUD), is employing a strategy where they plan to own the major events, by exclusively selling their beers inside the stadiums.
The other camp is local South African favorite SABMiller, and they're focusing their efforts outside the stadiums.
On paper you'd think that BUD is in a stronger position… but not according to head of SABMiller's World Cup strategy, Alastair Hewitt… he thinks that, "The stadium value is quite small in comparison to what happens outside the stadiums."
Forecast show the SABMiller plans to sell an extra 17.6 million pints of beer at these events, as an estimated 450,000 people will be attending the 5-week super-event.
One of the major areas they plan to focus is at 10 giant fan parks created for those without tickets. Big flat screens and plenty of rivalry should help consumer, well – consume.
I think this is smart move on their part. Being a local favorite, and also expected to sell unbranded beers, they'll quickly supply the masses with the ice-cold beer that they so desire.
Their plan centers on their flagship beer, Castle Lager, and they're rolling out a serious of initiates aimed at building nation pride.
More over, they're taking extra steps to make sure that there will be more than enough supply to meet the expected 4-6% spike in demand.
According to their website SAB will:
1. Increase it's brewing in April and May ahead of the event to ensure there is reserve stock to buy;
2. Ensure that the taverns on route to and from the stadium are well stocked;
3. There will be refrigerated vans with best stock investment for 2011 on standby in key match areas to replenish fridges and ensure that thirsty fans can always get an ice-cold beer;
4. All 7 breweries will be well equipped to manage any shortages;
5. Dedicated telephone numbers will be set up whereby customers can dial in should they require emergency supplies.
*Overall, I think the real advantage SABMiller has over BUD is their local infrastructure and brand image. So perhaps it's better if BUD stays off the street and in the stadiums. But rest assured, no matter where you watch the World Cup – there will be plenty of beer!
Cheers!
When It Doesn't Pay To Be #1 (Shawn Ambrosino)
iPad buyers beware…
If there's a lesson to be learned when it comes to purchasing electronics is this…
Don't be first.
Sure, you can be the first out of your group of friends to have the latest and greatest technology, but there's one problem with that…
Sometimes the latest technology isn't the greatest.
Take BETA Max video tape players…
When I was a kid, I can remember my local video rental establishment having separate wall displays for BETA Max and VHS tapes, and couldn't help but wonder if the smaller, squatter version of Back To The Future would be better on BETA then what I was about to watch.
We saw the same thing happen later in the Decade of Decadence with the large, LaserDisc that was basically the size of a record album.
Both mediums going the way of the Dodo.
We could go on an on about new inventions that have both made the grade and disappeared into obscurity, but remember this rule when it comes to buying electronics…
Don't be the first.
The reason is two fold, first, buying the newest, high-demand technology as it comes of the assembly line ensures that you're going to be paying top dollar.
When the iPhone debuted only 2 short years ago, the 8-gig version fetched a hefty price of $600…
That's almost $100 a gigabyte!
I just bought an 8-gig iPhone about a month ago…
For 99 bucks.
Suckers!
But there is another reason not to buy new technology hot of the presses, the simple fact is, the manufacturers are still working out the "bugs".
The first iPhones had all sorts of problems, such as not able to receive picture messages, and if you had larger digits (like me!), texting was a pain.
Both problems are now fixed…
But I saved $500 and got twice the phone!
What's next on the horizon?
Apple's iPad, basically a tablet PC with many of the same capabilities of a laptop computer mixed with some of the capabilities of a smartphone.
And while I admit it looks pretty enticing…
I have no need for this little technological gem, nor do I want to be the first to purchase something that will be obsolete within 8 months of its launch.
But hey…
Apple has a pretty good track record, so let's see where it goes.
Now if you just have to have this new, shiny little gadget, head my advice…
Wait.
Just wait a few months, put your ear to the ground and listen for the scuttlebutt…
If owners are raving after a few months, go ahead, make the purchase, but…
If purchasers are blasting this thing to hell, you might want to wait for the next wave and save yourself a nice chunk of change…
Along with the aggravation.
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