Exchange-Traded Funds (ETFs)

Exchange-Traded Funds (ETFs)

Exchange-Traded Funds (ETFs) are investments traded on the stock exchange, much like common stock. Such a fund may contain stocks, bonds and commodities and trades close to its net asset value (NAV). Among exchange-traded products, ETFs are the most popular because of several factors, including their similarity to stock trading and their relative tax efficiency. ETFs have relatively low costs and track an index, such as a bond index or a stock index. The first ETFs date back to 1989 with Index Participation Shares.

A Sci-Fi Boy. Illustration by Elena

Conversely, index funds, also known as index trackers, are investment funds, commonly mutual funds or ETFs, geared to mimic the movements of a particular index regarding a certain financial market and having a fixed set of rules, which is supposed to be held constant regarding volatility or market conditions. Today, tracking may be made with the help of computers. Indeed, while the world has still not been overtaken by robots, many calculations and much financial analysis is achieved using computer models with little or no human input. Such circumstances and style of management are sometimes referred to as passive management. Also, passive management means lower fees than active management.

Moreover, ETFs must be traded by authorized dealers-brokers and it is always better to get qualified tax and fiscal advice regarding one’s investments. Investments and the finance industry in general are a highly regulated industry, in large part because of the possible consequences and because large sums of money are involved. Further, since many long-term investments tie up large amounts of capital for long periods of time, all the pros and cons of investing in a particular venture must be taken into account. Qualified, licensed and authorized financial advisors may help investors decide where to invest their money. Additionally, professional money managers or asset management firms may further direct individuals and companies how to best manage their funds.

Gemstones

Gemstones

Putting a little sparkle in your life

The value of most gemstones is pretty steady compared to commodities like coffee and gold, changing no more than 10 or 15 percent in a given year. But like any commodity, their value is tied to the vagaries of the global marketplace – a mine strike can send prices up as suddenly as a glut can send prices down. Keeping that in mind, a few guides talk about wholesale gem values. Those guides can give you a feel for how gems are priced across a wide spectrum of quality. The numbers are accurate and reflect retail prices.

Stones: Ruby, sapphire, emerald, amethyst, pink tourmaline, green tourmaline, peridot, aquamarine, rhodolite garnet, tanzanite, etc.

Rings. Illustration by Elena

Diamonds: The Gemological Institute of America has developed a grading system for diamonds. The best diamond would be an ideally cut DIF. Color is graded from D (the best) to Z (D to M is the general range, though). Clarity ranges from best to worst as follows: internally flawless (IF), very, very slightly included (VVS1), VVS2, very slightly included (VS1), VS2, Slightly included (SL1), SL2, imperfect (I), I2 and I3. Cut can range from ideal cut to poorly cut. Well-cut is a good standard.

GIA Standard: Diamond (Well-cut)

Presleyana

Presleyana

The money for Presleyana: Collectors pay a king’s ransom for rock ’n’ roll memorabilia.

Almost everything Elvis Presley ever touched has since turned to gold. At a 1994 auction his sunglasses went for $26,450. His rhinestone jumpsuit garnered $68,500. Even his American Express Card pulled in$36,000. The items in the auction were from the collection of Jimmy Velvet, a former lounge singer and friend of Presley’s. “ Finally, there’s been a value established for Elvis,” Velvet said after the sale, which brought in 2.5 million – considerably more than he expected.

Some experts think the success of the Elvis auction has big implications for the broader, million-dollar Hollywood and music memorabilia market, one of the few sectors that, at least so far, has defied the art market’s recession.

Historically, however, the liquidation of major collection often turns out to be the peak of the market. Indeed, it already may be too late for amateurs to dive into the pricey King’s collectible market. Those who started buying Elvis items after 1977 will have a hard time selling their stuff, according to Steve Templeton, co-author of Elvis Сollectibles.

Robots. Illustration: Elena

The market boomed in 1980s and has later leveled off. The price of Elvis records and toys has fallen. But Elvis movie memorabilia was still hot for a long time.

Other experts recommended investing in rock bands like U2, Pearl Jam, and especially Nirvana since their lead singer, Kurt Cobain, committed suicide. As for Velvet, he is taking his auction proceeds and pouring the money into memorabilia owned by Dolly Parton, Liberace, and Madonna, all, he says, “good bets” for future price appreciation.

Toys worth their weight in gold

• Howdy Doody Puppets: The tin wind-up toy featuring Buffalo Bob at the piano.
• Beatles ceramic Figurines: Figures of the heavy metal heroes of Kiss are also popular.
• Japanese Toy Cars: The highly detailed tin lithograph versions from the 1950s and 1960s are particularly popular.
• PEZ Candy Dispensers: Look for limited editions like Santa Claus. Also big vintage Flinstones.
• Battery operated Robby the Robot: From the Sci-Fi classic Forbidden Planet. Other Robby figures are collected as well.
• Star Track Memorabilia: Trekkers love just about anything to do with the original cast.
• 1959 Barbie: Costumes and accessories are also hot.
• 1967 GI Joe Nurse: Other original one-foot-tall GI Joe dolls bring in about two hundred dollars.

Diamond Industry

Diamond Industry

Diamonds are forever and diamonds are a girl’s best friend. But what about the diamond industry? The diamond industry is divided into two main parts, mainly diamonds as precious stones or gems, and as industrial grade diamonds. Indeed, diamonds do cut through glass and being the hardest material on Earth are very valuable in construction and other trades requiring tools. However, the infatuation with diamonds as jewelry has a legend attached to it, stating that a marketing strategy might be associated with the romantic, engagement and marriage connotations diamonds have come to embody.

Further, there have been controversies surrounding diamonds, such as blood diamonds, and exploitation and corruption related to diamond mining. Notwithstanding, the purpose of the present short essay is to discuss the diamond industry without dipping into politics. Still, one may add that any discussion of economics involves political science to an extent, the subject even being called political economy in the past, and only later being divided into two separate social sciences. Interestingly, over eighty percent (80%) of diamonds mined worldwide fail to correspond to the gemstone industry and are instead used in industry. Also, a similarly valued precious stone is the sapphire; many gemstones, such as aquamarine and amethyst being considered semi-precious stones.

Diamonds are forever. Illustration: Elena

As jewels, diamonds are valued in terms of their clarity, colour and flawlessness. Indeed, there are white diamonds, pink diamonds, yellow diamonds, blue diamonds and black diamonds. Further, diamonds are measured in carats and the larger the diamond the higher its value and price, ceteris paribus or other things being equal. Typically, the largest and most expensive diamonds in the world are associated with crown jewels. Today, the largest diamonds known to historians are part of the British Crown Jewels. The initial stone was an impressive 3106.75 carats and weighted just over 600 grams. Cut into 105 diamonds, it produced the Cullinan I (Great Star of Africa) and Cullinan II (Lesser Star of Africa) belonging to the British monarchy.

Saving for Retirement

Saving for Retirement

Du sagst mir jeden tag du liebst mich – Fler

One often hears in the news that Canadians fail to save enough for retirement. In economics, saving is defined as future consumption, and also as spending less than income. However, many financial consultants, financial advisers or financial managers may offer important advice on saving for retirement and delayed consumption.

Another fundamental facet of this discussion, is a steady stream of consumption. Indeed, most people prefer a steady consumption stream. In other words, when a person goes from one job to another with a lesser income, or loses their job altogether, personal purchasing power diminishes and consumption becomes much lesser. Furthermore, depending on one’s income, aside from the purely psychological stress and distress that the problematic brings, there are intrinsically financial matters as well, matters to which professional marketers pay great attention.

The sad road for retirement. Photo by Elena

For instance, there are convenience goods and luxury goods. As your income goes up, you become able to afford luxury goods. Whether you are interested in consuming the luxury items and paying a prestige and status conveyance premium represents another matter altogether. Thus, to get back to the first paragraph of the present short essay, saving for retirement is crucial to avoid, or to at least mitigate, the loss of personal purchasing power and the reduced consumption stream.

Luckily, in Canada, there are several investment vehicles allowing individuals to save for retirement. To illustrate, there is the Registered Retirement Savings Plan (RRSP). The plan is registered with the Government of Canada and maximum yearly contributions are fixed. Other forms of saving for retirement involve private banking, and certified financial planners or other finance professionals may be able to advise persons wishing to save money for their retired years.

Alternatively, the Canadian Government also has plans concerning disability and education. Accountants, tax lawyers or other tax professionals are the best to consult on fiscal policies outlining contributions and collapsing of such plans, as well as how these affect one’s taxable income.