Nov 182014
 

In the world of finance, the word “arbitrage” refers to buying something in one market, and simultaneously selling it in another, profiting from a temporary price difference. According to Investopedia, this form of profit is considered practically risk free for the investor/trader. :D Well I have recently found such an arbitrage opportunity in the gold bullion market.

Introducing the 2014 Howling Wolf 99.999% Gold Coin

Several days ago I went out to buy the 1 oz. pure gold 99.999% – 2014 Howling Wolf coin made by the Royal Canadian Mint. The Howling Wolf gold coin cost me $1,389 CAD to purchase. The slight premium over the spot price of gold is due to the spread charged by the broker and the unmatched purity of the coin (most bullion is only 99.99% pure gold.) Details below with proof of purchase.

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If you live around Vancouver you can buy it from the VBCE, which is where I bought my coin. The current quoted price on their website is about $1,400 CAD. In Calgary albern.com currently sells it at $1429 CAD. In Florida, gainesvillcoins.com sells this coin for $40 over spot per oz. If you live around Toronto you can visit the Canadian Bullion Services to buy the coin. You can also order it online and pick it up in their store or have them mail it to you. In fact many of these companies I mentioned ship worldwide. There are hundreds of dealers across North America so this coin is relatively easy to obtain.

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Nov 162014
 

The secret to a long life may lie in the fast food industry, ironically. Earlier this year the founder of Chick-fil-A passed away at the ripe old age of 93. The Canadian entrepreneur behind Baskin-Robbins, Carl Karcher of Carl’s Junior, and Colonel Sanders of KFC all died at age 90. The founders of Hardee’s, Taco Bell, and even McDonalds all died in their 80s. Meanwhile the average life expectancy in the U.S. in 2012 was 79 years old.

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At first I was surprised that these people who seemingly surrounded themselves by greasy fast food could live to be so old. But the more I thought about it the more it made sense. Restaurant owners usually have a solid understanding of nutrition so it would make sense for these entrepreneurs to eat well. And since they are rich they can also afford the best health care in the country. :) I don’t think it’s a coincidence that fast food restaurant owners are wealthy and live long lives. It’s interesting how these moguls can be so passionate about their businesses but not consume their own products. Who knows. Maybe if we invest in these high caloric companies then we can also live long and prosper.

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Random Useless Fact:
The word “billion” (or its relevant translation) is by no means ubiquitous throughout the world; in many countries it means 1 million million, and even Great Britain used this system until 1974.

Nov 132014
 

IMAX at Home

If you happen to have $3 million just lying around you can install a home theater system, IMAX style. :) The 3D theater company will install one of its screens, along with the projectors, seats, and lighting all in the comfort of your very own house. Actually, most houses won’t even fit the installation. IMAX needs a room that’s a minimum of 21 feet wide, and 20 feet deep, plus 10 feet of additional space for the projection. That’s roughly a 600 square feet room, except it also has to be 12 feet high, lol.

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Once it’s installed you can watch Hollywood blockbusters the day they hit theaters. You just have to pay $500 per movie. :) You can also watch sports, play video games and stream concerts on the large, crystal-clear projection screen and custom sound system.

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Nov 102014
 

Rich people value financial security while the middle class focuses on job security. There use to be a time when these two terms meant the same. When I was going through school my parents wanted me to have a good education, so I could go on to get a high paying job someday. But that was the old way of thinking because the modern world doesn’t work like that anymore. :| Many university graduates with high grades today can’t find those “high paying” jobs anymore, let alone any job. :?

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In today’s world we have to think outside the box. We have to see the bigger perspective. For most people the point of having a job is to make money. If that’s the case then we should start with the money, not the job. Financial security means having a financial plan. It should begin in life as early as possible, but it’s never too late for anyone to start. Giving our finances priority means learning about our career paths, and life choices. It’s about making financial goals regarding savings, investing, and retirement. Financial security means knowing what we want our money to do for us. It means giving our financial future a purpose.

Finding job security can be a part of our financial security, but it shouldn’t be the priority. Job security is about finding a job. Financial security does that too, but it also teaches us how to survive if we lose a job. With a direct understanding in financial literacy we’ll have the knowledge and confidence to utilize other options like entrepreneurship, investing, network marketing, etc, in case we aren’t lucky enough to land our dream jobs right away.

The governor of the Bank of Canada recently received some heavy backlash from vocal individuals when he suggested that unemployed millennials should volunteer their time to build up relevant work experience. He probably meant volunteer work would help improve someone’s resume. However his words could also be interpreted to mean he supports unpaid internship. And there’s a lot of people angry about corporations taking unfair advantage of young people who are willing to work for free. I’m glad I’m not a public figure. In today’s politically correct world it can be difficult to speak candidly about anything. The best way to not offend anyone is pretend to be old, ignorant, and poor, lol. No offense. :)

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Random Useless Fact:
On August 16, 2013, Google went down for 5 minutes and in that time, the global Internet traffic dropped by 40%.

Nov 082014
 

Precious metals don’t provide a steady stream of income and sometimes require an annual storage fee. However, it could still make sense to invest in them for several reasons. First, the demand for gold in China and India is huge, and central banks all over the world buy them to hedge against political turmoil, hyperinflation, invasion, economic warfare, and environmental disasters – things that can happen at any time. Gold is a proven long-term wealth asset that’s useful when the market is sliding deep into crisis.

Gold is also bought as insurance against fiat currencies. When investors lose confidence in the dollar, gold prices go up and vice versa. Currently the price of gold is wavering at around $1,150 – $1,180 per ounce. Fifty years ago an ounce of gold could be traded for about 13 barrels of crude oil. Back then oil was under $10 U.S. a barrel. Today in 2014 oil costs more than $80 a barrel because the U.S. dollar has lost a lot of value. However an ounce of gold today is still worth about 13 barrels oil. :) People often discuss the strength of one currency against another. But in the long run no fiat currency can keep up with real money and hard assets.

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One way investors can get exposure to gold and be paid in precious metal dividends is through the GBI Physical Dividend Program. The Gold Bullion International Physical Dividend Program allows companies to pay shareholders with physical dividends rather than cash. GBI’s service is open to all publicly-traded companies that pay dividends.

The physical dividend program allows stockholders of participating companies to tailor-fit the dividend payouts. The dividends can be purely precious metals payment, or mixed with cash. Investors may change their dividend payout preference whenever they desire. After trying out the precious metals dividend program, investors may revert back to receiving pure cash dividends. Precious metals payments can be stored at GBI’s vaults or shipped to a location of an investor’s choice. The nice thing about GRC’s program is that it doesn’t add a premium to its minting costs. Shareholders only need to shoulder the fees of the shipping, handling, and production of the precious metal dividends. Gold Resource Corporation (GORO) is an example of a company that has implemented GBI’s program into its dividends. GORO has started their program since April 2010, offering gold and silver dividends in the form of double eagles, which are .999 fine gold and silver coins. The GBI program sounds interesting. I wonder if there are any companies in Canada that offers it.

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Random Useless Fact:

1 ton of discarded cell phones contain more pure gold than 1 ton of newly mined gold ore. (source)