Silver vs Gold............................The Race had already begun

500-year-old Ratio Shows Silver Will Catch Up to Gold

For gold bugs and other hard-asset investors, the gold-to-silver price ratio is well known. But most investors are unfamiliar with this metric.

In short, the gold-to-silver ratio represents the number of silver ounces it takes to buy a single ounce of gold.

Since silver is approximately 16 times more abundant than gold on Earth, markets have set silver prices at 1/16th of the price of gold in the past. And that gives us the historic gold-to-silver ratio of 1:16.

To calculate the current gold-to-silver price ratio, simply divide the current price of gold by the current price of silver.

 

 

Markets have used this 1:16 ratio to price silver for over 4,500 years. But there are periods when the gold-to-silver ratio gets thrown out of whack and rises or falls to extreme levels.

For example, at the beginning of the current precious metal bull market, the gold-to-silver ratio was over 1:60.

But these periods of statistically extreme gold-to-silver ratio levels don't last. And sooner or later, the time-tested ratio returns to the historic 1:16 level.

Just last summer, the gold-to-silver ratio expanded to 1:66. Gold was over $1,200/oz; silver sat at $18/oz.

However, the gap between gold and silver prices has rapidly begun to close...

Silver to Soar as the Gold-to-Silver Ratio Stabilizes

By the beginning of the year, the gold-to-silver price ratio had narrowed to 1:48.

Today, the ratio sits at 1:32, with gold at $1,534/oz and silver trading at $48.25/oz. But the metric is rapidly approaching its historic 1:16 level.

If the price of silver would catch up to the historic gold-to-silver ratio today, the price of silver would be $95.87/oz. And as gold prices continue to rise, the price of silver would easily exceed $100/oz.

Before this secular bull market for precious metals is all said and done, I think the ratio will not only return to its historic 1:16 level; but it will actually move toward 1:10 or even 1:5.

That would push the price of silver toward $200 or $300 an ounce.

 

How did the spot gold price relate to major currencies in 2010

How did the spot gold price relate to major currencies in 2010 analysis

It's well known that many investors and traders fell back heavily on gold since the recession in the U.S. commenced during 2008. Many still consider gold a safe heaven when uncertainty in major markets rises.

During 2010, there were a couple of new items that most likely only further influenced investors to hold on tight to their gold:

1.        The U.S. economy and the continues slash of its currency's worth with the second quantitative easing underway, in which the Fed will buy bonds at 600 billion dollars worth in an attempt to stimulate the economy;

2.        Europe's slow down: at the beginning of 2010 Greece was near bankruptcy; later on that year, Ireland was next in line, as the European Union bailed both these countries. Currently, Portugal is in line as a country at risk that could find its self in dire straits. In any case, all these countries needing bailouts, and the slowdown in the rest of the Euro zone only further helps to the descend of the Euro currency.

This news could imply correlation among gold prices and major currencies, as it's a known paradigm that people run away from the US dollar as it weakens to buy gold.

So, how did the spot gold price relate to major currencies?

In the following chart are the correlations among major currencies, WTI crude oil price and spot gold price in 2010. The data are based on monthly percent changes. Since each correlation relies on merely 12 samples (12 months), the results are not too robust; however I think they could be enough to point us to the right direction.

The chart shows that spot gold price wasn't too correlated to most currencies,  nor to WTI crude oil.

The only currencies that stand out were USD/ Yuan (Chinese Yuan) with a -0.26, and USD/INR (Indian Rupee) with a -0.18. This means as the Yuan or INR strengthen against the US dollar the spot gold price

Returns down by 30% if we do not wake up

Source : PersonalFn

 

The Equity markets (Sensex) have been witnessing swings everyday. In such uncertain times, you are looking for safety of your capital.

When it comes to safety, the most common investment instrument that comes to our mind is the good old bank fixed deposit.

There is no doubt that bank fixed deposits give assured returns. They are offering as high as 10% now.

But the catch is that they eat away a large chunk of the interest that you earn in the form of tax.

An investor has to pay 30% tax (add to it the cess of 3%)on the interest earned on a bank deposit. This translates to a net return of a less than 7%...

While you might think that there is no better investment instrument than a bank fixed deposit, I would like state the contrary.

There is an instrument which can provide you returns higher than a bank fixed deposit with considerable safety.

The instrument is known as a Debt Mutual Fund.

Today, it is a great time to invest in Debt Mutual Funds, specially if you are in the highest tax bracket.

While there is no doubt that Bank Fixed Deposits come with the highest safety, the biggest disadvantage is that you have to pay upto 30.6% income tax on the interest that you will earn.

Instead, if you were to invest in debt instruments that I am talking about then your tax payout would be only 10%.

This strategy gives you better returns (more than Fixed Deposits) and without taking higher risk such as you do in equities or stocks.

So, you see when you invest in Debt Mutual Funds, you get:

1. Higher returns
2. Low tax outgo
3. No exposing your investments to stocks and equities.

Isn't that a deadly combination?

So go ahead and invest in Debt Mutual Funds.

But beware; There are so many funds out there in the market.

Debt Funds: Confusion prevails!

Debt Fund Category	No of Schemes
Liquid Funds	52
Ultra Short Term (Liquid Plus)	46
Floating Rate Fund - Short Term	19
Floating Rate Fund - Medium / Long Term	11
G-Sec Fund - Short Term	15
G-Sec Fund - Medium / Long Term	29
Income Fund - Short Term	32
Income Fund - Medium / Long Term	58
Monthly Income Plans	46

 

And a majority of them are worthless! Just plain copies of each other!

It may also happen that the scheme that you choose, may not actually meet your investment objective, or you may fail to come across the right fund that can help you earn better tax adjusted returns.

Choice of wrong funds can seriously hamper your portfolio. And in its quest to seek the highest returns it may end up investing in low quality, high risk instruments.

And that is not what you want?

Before choosing a debt fund, you need to keep in mind that:

Interest rate scenario plays an important part of investing in debt mutual funds. The changes in interest rates are dependent on numerous factors like liquidity and supply conditions, inflation, fiscal deficit, government borrowing plans etc.

You need to understand, where the interest rates are heading, and which debt fund you should choose to invest your money based on the prevailing interest rate conditions.

 

Launch of our NFO Birla Sun Life Gold ETF

Birla Sun Life Launches Gold ETF fund , the fund would  open  on the 25th of April 2011 and would close  for subscription on the 9th of May 2011.

In India,  Gold is the best asset class which is best appreciated by households in the form of jewellery and investment. It is a symbol of wealth and good fortune. Gold is viewed as secure, value preserver and is the second preferred Investment after bank Deposits. Besides is also a good investment avenue for diversifying the investment portfolio due to low correlation with most other asset classes as it rises in value during times of rising Inflation, thus provides a hedge  against price increase in  the long term.

To know more about the product, please find attached literature giving you completed details on the product and features of this offer. Also attached is brokerage structure payable to the bank.

Invest in Gold -but only through "Gold ETF"

Celebrate this "Akshaya Thrithiya" by investing in Gold - thru' "Gold ETF" 
Act Safe....... Act Smart

 

Oflate, Gold has become a very popular investment destination, with soaring demand and prices reaching new heights every day.

 

Gold is the best hedge against inflation & it provides a perfect diversification to your portfolio.

 

The best way to invest in Gold is to invest thru "Gold ETF", easiest & cheapest way of investing in Gold. 

 

Salient features of Gold ETF :

-----------------------------

• Investment in Gold without taking physical delivery of Gold - totally avoids risk of theft.
• Each unit of Gold ETF is approximately equal to 1 gram of Gold
• Purchases can be made thru' our NSE terminals *, just like purchasing a Share.
• Units will get credited in your Demat account, again like Shares. 

Gold ETF prices are normally cheaper than the price of pure gold at any point of time.

Safest....Purest.....Cheapest..... Easiest..... "Gold ETF" - a Golden opportunity to invest in Gold.

 

WHY INVEST IN GOLD?

Would take this opportunity to connect to you on how has GOLD as an asset class fared in the past and what is the advantage of electronic form of Gold, our performance  

Invest in pure gold at cheapest price with Reliance Gold Savings Fund

Buy pure gold conveniently at cheapest price with Reliance Gold Savings Fund

Bring home, pure gold at cheapest price this Akshaya Tritya with Reliance gold Savings Fund

Presenting Reliance Gold Savings Fund- An opportunity to but pure gold at cheapest price

1. WHY INVEST IN GOLD?




2. ADVANTAGES OF ELECTRONIC FORM OF GOLD



3. PERFORMANCE OF RELGOLD

 

370 Days FMP : BNP Paribas Fixed Term Fund - Series 22 A (NFO Period: April 26 - May 3, 2011)

“BNP Paribas Fixed Term Fund – Series 22 A” (370 Days close ended scheme)  

 

Key Features:

 

·         The scheme will offer investors the option to hold their units by way of an Account Holding or in a Dematerialised form

·         NFO Opening Date:                                   April 26, 2011 (Tuesday)

·         NFO Closing Date:                                    May 3, 2011 (Tuesday)

·         Tentative Allotment Date:                       May 5, 2011 (Thursday)

·         Minimum Investment Amt:                      Rs 5000/-

·         Plans & Options:                                        Growth Option & Dividend Payout Options (Calendar Quarterly, Calendar Yearly and Dividend on Maturity)

·         Load Structure:                                          Entry Load Nil; Exit Load Nil

·         Benchmark:                                                CRISIL Short Term Bond Fund Index

 

Cheque to be drawn in favour of :  “BNP Paribas Fixed Term Fund Series 22 A”

 

Attached below are details of collecting banks RBS, HDFC & SCB.

 

RBS:-

BNP PARIBAS FIXED TERM FUND-SERIES 22 A -NFO ACCOUNT

A/c Number : 310000002674831.

IFSC Code : ABNA0100310

Bank : Royal Bank of Scotland, Fort Mumbai

 

 

HDFC:-

BNP PARIBAS Fixed Term Fund Series 22 A -NFO A/c

A/c Number : 00600350095360

IFSC Code HDFC0000060

Bank : HDFC Bank, Fort Mumbai.

 

 

Standard Chartered Bank:-
BNP Paribas Fixed Term Fund Series 22 A -NFO A/c

A/c Number : 22205444330

IFSC Code  SCBL0036001

Bank : Standard Chartered Bank, Fort Mumbai.

 

 

Please Note:

Listing of the FMP: The Fund intends to list BNP Paribas Fixed Term Fund – Series 22 A on National Stock Exchange of India Ltd.

 

Investors will not be able to redeem their units during the tenor of the Scheme and there will be redemption by the fund on the maturity of the Scheme. However the units held in dematerialized form can be traded on the National Stock Exchange (NSE). In case an investor intends to exit, he may do so through the NSE.

 

Attachments:

·         Product Note

·         Application Form

Dividend Declaration- Birla Sun Life 95 Fund , BSL Buy India Fund & BSL Infrastructure Fund

We are pleased to inform that Birla Sun life Mutual Fund declares dividend in Birla Sun Life 95 Fund , BSL Buy India Fund  & BSL  Infrastructure Fund.
The Record Date for the dividend is 29th April, 2011.
Pursuant to the payment of dividend, the NAV of the dividend option of the scheme would fall to the extent of payout and statutory levy if any.

The dividend details are as follows,

 

Name of the Scheme	Plan/Option	Dividend %	Rs.per  unit on face value of Rs.10 per unit	Nav on 26th of April 2011
Birla Sun Life 95 Fund	Dividend	65.00%	6.50/-	115.33/-
Birla Sun Life Buy India Fund	Dividend	17.50%	1.75/-	23.89/-
Birla Sun Life Infrastructure Fund	Dividend	7.50%	0.75/-	12.41/-

 

 

Launching IDFC Fixed Maturity Plan - 200 days series - 1

 

 

 

Warm regards

TRIPTI GROVER

SMC Global Securities Ltd 

17, Netaji Subhash Marg

Daryaganj, New Delhi-110002

Mobile- 9560055221

Contact No: 61105999,30453600-(7126,7129 Extn)

 

 

 

--
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WE WIN AGAIN!!
AFTER BEING AWARDED INDIA'S BEST EQUITY BROKER, SMC WINS ANOTHER PRESTIGIOUS AWARD - INDIA'S BEST CURRENCY BROKER 2011. THANK YOU FOR MAKING US THE BEST ONCE AGAIN.
(SOURCE: ICRA-BLOOMBERG UTV FINANCIAL LEADERSHIP AWARDS 2011)
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Notice: Declaration of dividend under IDFC FMP Thirteen Months Series -5 and IDFC Small & Midcap equity Fund

Declaration of dividend under

1.       IDFC FMP Thirteen Months Series -5

2.       IDFC Small & Midcap equity Fund

 

 

 

UTI Opportunities Fund: Declaration of 8% Dividend : Record Date: 2nd May 2011

Assuming that all payouts during the period have been reinvested in the units of the scheme at the immediate ex- div NAV.
Past performance may or may not be sustained in future.Returns are computed on the basis of "Compounded Annual Growth Rate"

 

Most demanding list of Fixed Deposit Scheme

COMPANY NAME	RATE OF INTEREST ( %) p.a				REMARKS	MINIMUM INVESTMENT
PERIOD	6M	12M	24M	36M
ANSAL PROPERTIES & INFRASTRUCTURE  LTD	11.50	12.00	12.25	12.50	Pan Copy Mandatory & also Ecs form Mandatory for Scheme A & C	A & C=100000/-,B=50000/-
ANSAL HOUSING & CONSTRUCTION LTD	10.00	11.00	11.00	11.50	No Add. Interest, Pan Mandatory	A & C-20000/- ,B-10000
BIRLA POWER SOLUTION LTD	-	10.50	11.00	11.50	0.50%  Add ROI to shareholder & 0.25% Add ROI if application amount >100000	10000/-
DEWAN HOUSING FINANCE CORPORATION LTD	400days=10.25%				0.25% Extra for senior citizen,widow, armed, personnel, Existing DHFL home borrowers &  DHFL share holders,0.25% for Deposit 25lac and above	10000/-
HDFC PLATINUM SCHEME	15M=9.50%	22M=9.30%	33M=9.50%	-	0.25% Add. ROI To Sr Citizen, These rates as per cumulative scheme	20,000/-
HELIOS & MATHESON LTD	-	12.00	12.00	12.00		25000/-
JAI PRAKASH ASSOCIATES LTD w.e.f 22Sep	10.50	10.50	11.00	11.50	Accept only Individual & HUF, corporate deposit not accept,  6M not accepted by company in case of Scheme A	20000/-
JAPYEE INFRATECH LTD w.e.f 01Oct	10.50	10.50	11.00	11.50		20000/-
KERALA TRANSPORT  DEV. FINANCE CORP  LTD	-	9.25	9.25	9.50	48-60M=9.50% & brkrg=0.80%,  0.25 % extra to Sr. Citizen &  on above Rs. 25lakh
LYKA LABS LTD  w.e.f 16 Nov	10.00	10.50	11.00	12.00	Min. 1 Share, 0.50% extra for Sr. Citizen
NEESA LEISURE LTD	11.00	11.25	11.75	12.00	0.50% Add. ROI to Sr. Citizen, Employees of the company & Appl. amount >=500000	25000/-
SEJAL GLASS LTD	-	11.50	11.75	12.00	0.50% ADD TO SR CITIZEN,SHAREHOLDER	10000/-
SHRIRAM UNNATI	-	9.25	9.75	10.75	48-60 MONTH (ROI-10.75% & PAYOUT-1.65%)	25000/-
SHRIRAM STRAIGHT BOND & SUBHIKSHA BOND	78M=11.50	9.25	9.75	10.75	0.25% Add. ROI to Sr. Citizen, rate as per Yearly scheme, 78m Scheme is Subhiksha Bond	10000/-
UNITED SPIRITS LTD	-	11.00	11.50	-		25000/-

 

Report on Gold

A Very Good Analyst Report on Gold

Gold Not in Bubble Territory…Yet

 

Product Launch: ICICI Prudential MIP 5 - NFO : 14th April to 27th April

We are pleased to launch our ICICI Prudential MIP-5.The fund will maintain an avaergare 5%(Can go as high as 10%) in Equity and 95% in short term debt with the objective to generate accrual income form the debt portfolio.

# Debt allocation focused on accrual income with minimal volatility

# Fixed income allocation managed with conservative approach

# Equity allocation focused on capital preservation rather than aggressive returns

# Equity allocation with an aim to act as returns enhance for the portfolio

# Strive for healthy returns over a 1 year plus investment horizon

# Provide an income fund to initiate non-equity investors with very marginal equity exposure.

# The fund has the following dividend payout and re-investment frequecy:Monthly,Quarterly and Half Yearly.

#The fund will have an exit load of 1% for 1 year and post that the exit load will be nil.

The product is very well poised to take the advantage of high yield in while constructing its debt portfolio and with low equity allocation can potentially deliver better return then MIP's with higher equity allocation if one sees the market to be flat or negative.

 

 

Launch of UTI Yearly FMP : Closing 25th April 2011

We are pleased to inform launch of UTI Fixed Maturity Plan - Yearly FMP Series - April 2011 :  YFMP (04 / 11).

YFMP ( 04 / 11) opens on Monday, April 18, 2011 and closes on April 25, 2011 (Monday)

Please note that this is a scheme with a tenor of 396 days.  The scheme will mature on Friday, May 25, 2012.  In case May 25, 2012 is a non-business day, then the scheme will mature on the next business day.

The scheme will be listed on the National Stock Exchange and hence withdrawal before maturity is not permitted in this scheme.  Also the Minimum Target Amount (proposed to be raised) has been increased to Rupees Ten Crores from Rupees One Crore.  In other words, if YFMP 04/11 does not collect Rs 10 crores, then the entire money collected under the scheme would be refunded.

There are 2 plans  - retail and Institutional.

PLEASE NOTE THAT ALL 1 CR AND ABOVE APPLICATIONS NEED TO CLEARLY MENTION THE PLAN AND THE OPTION.

The application form is attached herewith.