Category: Business and Finance

Fiscal Cliff Causes Rise in American Eagle Coin Purchases

One of the side effects of the fiscal cliff fears has been the purchase of gold coins. Many news sources have reported that November sales of U.S. American Eagle gold coins have reached their largest sale point in the last 14 years. Buyers are purchasing these now as a result of President Obama’s reelection, as a result of the fiscal cliff fears and as a result of the sharp price movements that occurred in early and late November. Purchases are often made in person, or done through the web.

Bullion dealers have also noticed more high net worth individuals buying gold coins in volume and taking possession of them.  As reflected on the U.S. Mint’s website, 131,000 ounces of American Eagles sold in November, which it triple the sales they had last November and the strongest showing since 1998. The silver coin sales for American Eagle doubled in November moving from 1.384 million to 3.135 million ounces.

Certainly, for buyers interested in coins for investment purposes, reading site reviews is a helpful way to decide where to purchase these items. ICCoin Reviews, International Coin Reviews and others can offer insights into their products and recommendations about the best investments to be making at the moment.

In addition to being a sound investment, coin sales serve as a fascinating barometer of the nation’s feelings about the economic situation and about where the government is headed.

Improving Employee Satisfaction

The Bellingham Herald recently published an article called “Q: How Do I Improve Employee Satisfaction in Bad Economy? A: Lighten Up.”

Writer Bob Dahms presents the question: “My business seems a little dark lately. The crummy economy and lack of growth have us all in the dumps. What can I do to get our mojo back?

The answer given is complex. It acknowledges the problem as a common one- “workplace malaise is widespread.”

First, the article suggests making the workplace less grim and more enjoyable. Employees who are happy and motivated are more committed and productive. The impact spreads beyond just the office, as well. Consumers and clients will be able to sense if there is something amiss.

“Businesses with high employee satisfaction enjoy higher productivity, less absenteeism and better customer retention,” the article explains. “They are also more creative- an important ability in the competitive business world.”

An example of a business that has managed to achieve this attitude is Southwest Airlines. They put enormous amounts of effort into corporate culture, encouraging their employees to think outside the box. They hire people based on their personalities and ability to remain comfortable and think on their feet in any situation.

Their job interviews include questions like “One time my sense of humor helped me out was…”, “My personal motto is…” and “An example of my top performance is…”

They focus less on experience and job skills, because they know they can teach the right person anything they need to know for their new job.

The article adds: “It’s appropriate for small businesses to draw some lessons from Southwest. Even though they’re huge now, they think of themselves as a ‘big, small business’.”

 

U.S. Expects Slow Economic Growth in 2013

According to a recent survey, the United States’ economy will continue to grow, but at a slow pace. This is due to low consumer spending and minimal business investment in the region.

Gross domestic product is expected to grow at an annual rate of 2.1% in 2013, according to a forecast from the National Association for Business Economics. Last year, it predicted a 2.2% growth rate.

Nayantara Hensel, spokesperson of the NABE Outlook Survey, said:

“The panelists forecast little improvement in consumption growth, significantly reduced growth in investments in nonresidential structures, equipment and software, and reduced growth in corporate profits and industrial production.”

Still, the labor market has revealed definite improvement; non-farm payrolls are averaging at 165.000 jobs per month next year. So far, 2012 has seen an average of 151,000 new jobs per month.

The U.S. housing market will also continue to grow next year, especially in residential construction and home prices.

IFM Appoints New PE Executive Director as Private Equity Gains Momentum

As part of an effort to strengthen its private equity division, Industry Funds Management has hired Steven Lipchin to head both its co-investing and direct investing programs.

Lipchin’s past experience includes leading the private equity division at Wingate Group, a private investment and advisory firm based in Melbourne. He also served as co-founder and managing director of Horizon Equity Partners in South Africa, a company that has a presence in the hedge fund industry.

IFM private equity division head Judith Smith explained that Lipchin’s appointment comes as many private equity investment opportunities arise.

“Private equity continues to enhance returns for our investors’ members,” she said. “Around the world pension funds are increasing their allocation to private equity. Here in Australia, over the past ten years, PE net returns outperform most market indices.

“At the same time we are seeing traditional lenders pulling back from the small and medium enterprise sector, thereby providing good investment opportunities. Australian SME’s currently lack funding and that mean IFM has an opportunity to achieve strong returns, while building jobs for Australians in the process.”

She added:

“The feedback from our clients is that they want additional direct exposure to private equity. We have responded and Steve will now lead this next phase.

“I welcome Steve to IFM as our new executive director of private equity. He has excellent experience, across a number of private equity markets.”

Tax News Around the World: Israel

In important tax news for many residents of Israel, the Israel Tax Authority with Gidi Bar Zakai created some new regulations recently. In July of 2011 they repealed the exemption from certain capital gains for foreign residents. This repeal applies to capital gains that came from state loans with a date of maturity that doesn’t exceed one year for mutual funds and future transactions.

The new regulations went into effect on July 7th of that year, according to details from Deputy Director Gidi Bar Zakai and the Tax Authority.

China Aims to Heighten Investment

Some of the largest cities in China have revealed their plans to expand investment in an effort to boost growth rates.

The Wall Street Journal explains:

“The city of Chongqing in China’s southwest called for investment of 1.5 trillion yuan in seven key industries over the next three years, the state-run Xinhua News Agency reported Monday. The investment goals include 300 billion yuan in the electronic communications sector, 200 billion yuan in the auto industry, 250 billion yuan in the manufacturing of advanced equipment and 150 billion yuan in the chemical industry, Xinhua said on Monday.

“Separately, Tianjin, a city next to Beijing, said it has “preliminarily” decided to move forward with a plan calling for investment of 1.5 trillion yuan over four years in 10 industrial sectors, ranging from the petroleum and chemical industry to the aviation and aerospace industry over the next four years, according to a report by the state-run Tianjin Daily posted on Tianjin municipal government website Tuesday.”

U.S. Tax Increase in 2013- Pros and Cons

President Obama is toying with the idea of increasing taxes in 2013, despite his previous disapproval of the idea back in 2010.

David Gregory of Meet the Press discussed the move and its potential effects on the U.S. economy with Senator Dick Durbin and Senator Jon Kyl in a program last night.

[youtube http://www.youtube.com/watch?v=DXXQfHbsWIQ]

Watch the full debate here on MSNBC.com

India Initializes Plan to Boost Economy

According to shipping minister GK Vasan, the Indian government has come up with a plan to boost its country’s economy after its most recent slide, with the help of the infrastructure sector.

“Lately, sustainability of a high growth rate has been a subject of much discussion, especially in the wake of the 2011-12 GDP growth rate falling to 6.5%, which was the lowest in the last nine years,” he said.

Still, for the global situation, 6.5% isn’t too bad.

“Notwithstanding the current dip in growth rate, the economy is expected to bounce back and resume its high growth trajectory. We need to either ride the tide when the economic growth is high, or invest to spur the growth itself. We need to seize this moment,” he said.

 

Upcoming Fed Meeting Boosts Gold Prices

Gold is continuing to rise, with a recent increase of $2.90 to $1737.70 per ounce for December delivery; a fact that will likely boost confidence in investments with companies such as Bullion Direct. The precious metal has seen losses only once in the last four sessions, and has increased 2.8% in September alone.

Gold is globally recognized as a ‘store of value’, and concerns regarding inflation and currency degradation often trigger increases in worth.

This week’s change is no exception, as the rise came just before the Federal Reserve policy meeting which will take place later this week. Many experts predict that the Fed will announce further bond purchases in an effort to boost the United States’ economy.

HSBC strategists explained:

“With the market’s main focus on this week’s meeting…prices were buoyed by a stronger euro. The euro is being supported by an increase in bullish sentiment stemming partly from expectations of a positive ruling on the legality of the European Stability Mechanism by the German Constitutional Court and European Central Bank bond buying.”

Singapore Proceeds with Caution as European Crisis Lingers

Despite last year’s growth, Singapore remains concerned about a potential “disorderly” European debt default and its impact on the economy.

GDP increased 10% in the past three months, while the estimate was set at 9.9% according to the Trade Ministry.

Unlike other Asian policy makers, Singapore narrowed its strategy this spring in an effort to blunt strengthening price pressures. Europe’s debt conflict appeared to have been on the mend, but certain government struggles in countries such as Greece have proved a setback in the process.

“The developments in Europe pose a significant downside risk to Singapore’s economy,” says Nomura Holdings’ Euben Paracuelles. “It’s hard for Asia to escape the repercussions if there’s a European recession and it’s accompanied by financial market instability and a banking crisis.” He added that the growth outlook for Singapore during the third quarter is “very poor.”