Visual impact and final display is an important element of a fashionable jewelry that a designer keeps in mind for making it an ultimate piece of work that reflects its charm on its wearer in person and when he is in a company. Simplicity and elegance are two major factors that are a hot-favorite fashionable trends that never looses their importance in jewelry sense.

Today the look of the jewelries has been changed drastically for men and women both. They are moving towards something classy, beautiful that gives comfort as well as style; jewels which provides a new meaning to their personality and outlook.
From centuries designers have crafted jewels to add a new and stylist look in the aura of great kings and queens.

With the change in styles and technologies, the jewelry market has been widening increasingly. Now, with the new, fast equipments and means, the cut and design of today’s jewelry has become more delicate and sophistication. Jewelry made by machines is really creating a rage among buyers because of their fineness and elaborate designs. It has further brought back the age of costume jewelry in the fashion today.

New and durable metals have also made their entries in the market to provide better options for wearers. Instead of jewels in pure gold, people have started turning towards other metals such as platinum and titanium as they are beautiful and look far exquisite. Designers use these metals to frame their creativity in their desired shape. Ornaments, made in these new and different metals with a base in gold have become the hottest property these days.

Change in fashion is shaping the jewelry trends today; from decades the trends in jewelry changed rapidly as they reflect the feeling and ideas of their respective era. Glittering brooches, hanging neck wears and illuminating earrings have made their entries back on popular wearer demand. So, once trend has changed into the today’s fashion.

The stones used in the jewelries have also changed dramatically. Besides, retaining the importance pearls and diamonds are still on favorable chart. Emeralds rubies and sapphires have also joined this exquisite class and worn with pride and pleasure today.

As a continuous process, jewelry trends set the different fashions with their exclusive style, fashion and design to present a complete and colorful picture of different times that tells their idea of fashion, sense of designing and passion.

For more information on cheap jewelry online click the link.

Author is an experienced jewelry business expert.

The inventory of the typical store represents the largest single element of its total assets. The sale of goods from this inventory is the merchant’s chief source of operating profit. Thus, the way in which this merchandise investment is put to work is of utmost importance in achieving a profitable operation.

To illustrate, a retailer may carry an average retail inventory of $200,000, with sales of $400,000, resulting in a 2.0 Stock Turn Rate. If this retailer had the same $400,000 sales but a 3.0 Stock Turn Rate, the average retail inventory would be $133,300. This is a difference of $66,700 at retail or approximately $32,000 at cost.

The cost of owning excess inventory is approximately 2% per month, or 30% per year. This is due to increased expenses such as interest, insurance, buying expense, receiving department expense, property taxes, markdowns and shrinkage. Therefore, a retailer can reduce these expenses by reducing his average inventory level. In the example above, the annual savings would be approximately $10,000 ($32,000 times 30%).

All other things being equal, a higher stock turn rate tends to lead to higher sales and a higher profit, which should be an essential goal of every merchant. I will discuss this more later, but first we must have a good understanding of what Stock Turn Rate is and how it is to be computed.

WHAT IS STOCK TURN RATE?

Stock Turn Rate can be computed using units, cost dollars or retail dollars. For comparative purposes, it is desirable that the Stock Turn Rate calculation be standard. We advocate retail, which is the generally accepted method in the retail industry.

Stock Turn Rate is the ratio of sales to average inventory. It is computed as follows:
Stock Turn Rate = Total Annual Sales divided by Average Inventory at Retail

Example A

Annual Sales = $900,000: Average Retail Inventory = $450,000:

Stock Turn Rate = 2.0

Example B

Annual Sales = $900,000: Average Retail Inventory = $300,000:

Stock Turn Rate = 3.0

COMPUTING AVERAGE INVENTORY

The chief problem in computing Stock Turn Rate is to determine the average stock carried during the period. This can be a problem since there are so many variations in use. The chief methods are:

1. Average of the inventory at the beginning and end of year.

2. Average of inventory at the beginning, middle and end of year.

3. Average of monthly inventory levels.

The standard is to use the average of the monthly inventory levels which is computed as follows:

Inventory at the beginning of the year plus the inventory at the end of each month, divided by thirteen.

WHAT STOCK TURN RATE IS NOT

While Stock Turn Rate is the ratio of sales to average stock, it is not the actual number of times a physical stock of goods is bought and sold during a period. A simplified example follows:

A retailer purchases a 4-month supply of socks, a staple item, and does not restock until the old stock is completely sold out. During the year, three purchases, each $4,0000 are made and three lots are sold, for a total of $12,000 but the Stock Turn Rate is not three. The average stock is about a 2-month supply, since four month’s supply is on hand only at the start of each 4-month period and virtually none is on hand at the end of each 4-month period. THus the average stock is about half the amount received each 4-month period, or $2,000. This results in a Stock Turn Rate of approximately six, and a lot of lost sales due to having such a low supply on hand during much of the year.

WHAT IS THE IMPORTANCE OF STOCK TURN RATE?

The Stock Turn Rate ratio measures the effectiveness of inventory planning control. A Stock Turn Rate that is too low indicates poor planning and lack of control. A classification having a very low Stock Turn Rate usually will not be achieving its sales potential due to having too much old merchandise in stock and too little new, fresh merchandise. It is also likely to have higher than normal markdowns, thereby reducing Gross Profit. Stock Turn Rate can also be used to calculate the proper beginning-of-month inventory level for each classification on the Open-To-Buy.

ADVANTAGES OF A FAST STOCK TURN RATE

In retailing it is important to realize a large volume of sales on as small an inventory investment as possible while maintaining sufficient inventory to meet customer demands. Also, it is important, as fashions and seasons change, to turn the inventory quickly so as to avoid excessive markdowns or carryover of out-of-season inventory. Another advantage is that a fast Stock Turn Rate will actually increase sales due to the increased flow of fresh new merchandise.

LIMITATIONS OF A FAST STOCK TURN RATE

While a fast Stock Turn Rate has many advantages, the Stock Turn Rate can be too fast for a particular classification. When that happens the store risks losing sales due to inadequate assortments.

WHAT CAN BE DONE TO IMPROVE STOCK TURN RATE?

From a study of the basic Stock Turn Rate formula, it is clear that there are three ways to increase Stock Turn Rate:

1. Increase sales without increasing the average stock assortment.

2. Decrease stocks without interfering with sales.

3. Increase sales and at the same time reduce stocks.

The approach used depends on the circumstances. Probably the surest way to increase Stock Turn Rate over a period of time, is to increase sales volume without a proportionate increase in inventory levels. However, since a retailer has greater control over his inventory than over his sales, this should be where attention should be given first. THe first step to increasing Stock Turn Rate and sales, incidentally, is the preparation of an Open-To-Buy. This should be based upon planned sales, planned markdowns and planned Stock Turn Rate. Once the Open-To-Buy has been prepared, the retailer can turn his attention to taking the necessary steps to reduce the actual inventory on hand to bring it in line with the planned inventory on the Open-To-Buy. A few suggestions on how to do this follow:

1. Buy more frequently, in smaller quantities.

2. Reduce number of assortments (vendors, styles, colors, sizes, prices).

3. Eliminate slow-selling merchandise.

4. Buy closer to the selling season.

SUMMARY

Stock Turn Rate is an important ratio used to measure the effectiveness of merchandise planning and control. Its two most important uses are in Open-To-Buy planning and then in measuring performance against this plan. Most retailers I see that are having problems achieving adequate profits have a poor Stock Turn Rate due to lack of planning, which results in overbuying, excessive markdowns and a low Gross Margin.

This article was written by Linda Carter, President of The Retail Management Advisors, a retail consulting firm whose mission is to help independent retailers survive and thrive. Linda can be reached at 1-877-206-1299 or l.carter@the-retail-advisor.com. Our web site is http://www.the-retail-advisor.com

You can reprint this article as long as the above information is included.

Fashion House is a bed and breakfast in Barcelona, located in C/ Bruc 13 Principal

Welcome to Fashion House your Bed & Breakfast in Barcelona, where elegance and warmth merge into a friendly and informal atmosphere. Fashion House is located in a fine 19th century building in the heart of Eixample, the centre of Barcelona, a few steps away from the Paseo de Gracia and plaa Catalunya.
A careful renovation has added comfort and functionality to the ample spaces, keeping the atmosphere and enchantment of that period.

I’ve come to the conclusion that the Stock Market is an easier medium for investors to understand (i.e., to form behavioral expectations about) than the Fixed Income Market. As unlikely as this sounds, experience proves it, irrefutably. Few investors grow to love volatility as I do, but most expect it in the Market Value of their equity positions. When dealing with Fixed Income Securities however, neither they nor their advisors are comfortable with any downward movement at all. Most won’t consider taking profits when prices increase, but will rush in to accept losses when prices fall.

Theoretically, Fixed Income Securities should be the ultimate Buy and Hold; their primary purpose is income generation, and return of principal is typically a contractual obligation. I like to add some seasoning to this bland diet, through profit taking whenever possible, but losses are almost never an acceptable, or necessary, menu item. Still, Wall Street pumps out products and Investment Experts rationalize strategies that cloud the simple rules governing the behavior of what should be an investor’s retirement blankie. I shake my head in disbelief, constantly. The investment gods have spoken: “The market price of Fixed Income Securities shall vary inversely with Interest Rates, both actual and anticipated… and it is good.”

It’s OK, it’s natural, it just doesn’t matter, I say to disbelieving audiences everywhere. You have to understand how these securities react to interest rate expectations and take advantage of it. There’s no need to hedge against it, or to cry about it. It’s simply the nature of things. This is the first of three successive articles I’ll be writing about Fixed Income Investing. If I don’t improve your comfort level with this effort, perhaps the next one will strike the proper chord.

There are several reasons why investors have invalid expectations about their Fixed Income investments: (1) They don’t experience this type of investing until retirement planning time and they view all securities with an eye on Market Value, as they have been programmed to do by Wall Street. (2) The combination of increasing age and inexperience creates an inordinate fear of loss that is prayed upon by commissioned sales persons of all shapes and sizes. (3) They have trouble distinguishing between the income generating purpose of Fixed Income Securities and the fact that they are negotiable instruments with a Market Value that is a function of current, as opposed to contractual, interest rates. (4) They have been brainwashed into believing that the Market Value of their portfolio, and not the income that it generates, is their primary weapon against inflation. [Really, Alice, if you held these securities in a safe deposit box instead of a brokerage account, and just received the income, the perception of loss, the fear, and the rush to make a change would simply disappear. Think about it.]

Every properly constructed portfolio will contain securities whose primary purpose is to generate income (fixed and/or variable), and every investor must understand some basic and “absolute” characteristics of Interest Rate Sensitive Securities. These securities include Corporate, Government, and Municipal Bonds, Preferred Stocks, many Closed End Funds, Unit Trusts, REITs, Royalty Trusts, Treasury Securities, etc. Most are legally binding contracts between the owner of the securities (you, or an Investment Company that you own a piece of) and an entity that promises to pay a Fixed Rate of Interest for the use of the money. They are primary debts of the issuer, and must be paid before all other obligations. They are negotiable, meaning that they can be bought and sold, at a price that varies with current interest rates. The longer the duration of the obligation, the more price fluctuation cycles will occur during the holding period. Typically, longer obligations also have higher interest rates. Two things are accomplished by buying shorter duration securities: you earn less interest and you pay your broker a commission more frequently.

Defaults in interest payments are extremely rare, particularly in Investment Grade Securities, and it is very likely that you will receive a predictable, constant, and gradually increasing flow of Income. (The income will increase gradually only if you manage your asset allocation properly by adding proportionately to your Fixed Income holdings.) So, if everything is going according to plan, all that you ever need to look at is the amount of income that your Fixed Income portfolio is generating… period. Dealing with variable income securities is slightly different, as Market Value will also vary with the nature of the income, and the economics of a particular industry. REITs, Royalty Trusts, Unit Trusts, and even CEFs (Closed End Funds) may have variable income levels and portfolio management requires an understanding of the risks involved. A Municipal Bond CEF, for example will have a much more dependable cash flow and considerably more price stability than an oil and gas Royalty Trust. Thus, diversification in the income-generating portion of the portfolio is even more important than in the growth portion… income pays the bills. Never lose sight of that fact and you will be able to go fishing more frequently in retirement.

The critical relationship between the two classes of securities in your portfolio, is this: The Market Value of your Equity Investments and that of your Fixed Income investments are totally, and completely unrelated. Each Market dances to it’s own beat. Stocks are like heavy metal or Rap…impossible to predict. Bonds are more like the classics and old time rock-and-roll…much more predictable. Thus, for the sake of portfolio smile maintenance, you must develop the ability to separate the two classes of securities, mentally, if not physically. For example, if your July 2005 Market Value fell, it was because of higher interest rates not lower stock prices. More recently, the combination of higher rates and a weaker Stock Market has been a Double Whammy for portfolio Market Values, and a double bonanza for investment opportunities. Just like at the Mall, lower securities prices are a good thing for buyers… and higher prices are a good thing for sellers. You need to act on these things with each cyclical change.

Here’s a simple way to deal with Fixed Income Market Values to avoid shocks and surprises. Just visualize the Scales of Justice, with or without the blindfold. On one side we have a number that represents the Current Market Value of your Fixed Income portfolio. On the other side, we have a small “i” for interest rates, and “up” or “down” arrows that represent interest rate directional expectations. If the world expects interest rates to rise, or even to stop going down, “up” arrows are added to “i” and the Market Value side moves lower… the current scenario. Absolutely nothing can (or should) be done about it. It has no impact at all on the contracts you hold or the interest that you will receive; neither the maturity value nor the cash flow is affected… but your broker just called with an idea.

The mechanics are also simple. These are negotiable securities that carry a fixed interest rate. Buyers are entitled to current rates, and the only way to provide them on an existing security is to sell it at a discount. Fortunately, one rarely has to sell. Over the past few years of falling interest rates, Fixed Income securities have risen in price and investors (should) have realized capital gains as a result…adding to portfolio income and Working Capital. Now, that trend has reversed itself and you have the opportunity to add to existing holdings, or to buy new securities, at lower prices and higher interest rates. This cycle will be repeated forever.

So, from a “let’s try to be happy with our investment portfolio because it’s financially healthier” standpoint, it is critical that you understand changes in Market Value, anticipate them, and appreciate the opportunities that they provide. Comparing your portfolio Market Value with some external and unrelated number accomplishes nothing. Actually, owning your fixed income securities in the most freely negotiable manner possible can put you in a unique position. You have no increased risk from a reduction in security prices, while you gain the ability to add to holdings at higher yields. It’s like magic, or is it justice. Both sides of the scales contain good news for the investor… as the investment gods intended.

Steve Selengut
sanserve@aol.com
800-245-0494
www.sancoservices.com
Professional Portfolio Management since 1979
Author of: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read”, and “A Millionaire’s Secret Investment Strategy”

Now that we are in the holiday season, you will be hearing more about the so-called “Santa Claus Rally.” It is a well-known phenomenon, first discovered by Yale Hirsch and published in his Stock Trader’s Almanac. During this year-end rally, stocks tend to advance, sometimes sharply, from the day after Christmas to the first two days after New Year’s Day.

But now, just as the retailers have extended the Christmas shopping season to Halloween, the Santa Claus Rally has been extended by traders to cover the final two to three months of the year.

At Investment U, we want to answer three questions:

Is the Santa Claus Rally real? Can it be confirmed historically? What is the cause of this year-end stock rally? Most importantly, will we see a Santa Claus Rally this December? I’ve done a great deal of research on this topic, and here are my answers…

First, is the Santa Claus Rally historically factual? The answer is yes. In terms of the original Santa Claus Rally, 65% of the time (going back 100 years), stocks have advanced during the week following Christmas Day, and have done better than December as a whole.

In the past eight years, November and December have been extremely bullish. Even during the bear markets, 2000-2003, stocks rallied in the final two months. Looking at a chart of the Dow Jones Industrial Average, and you would notice the steep run-ups just before the annual vertical lines.

Analysts suggest several factors that drive the Santa Claus Rally:

The end of tax-loss selling. A tendency for investors to fund IRAs and 401(k)s at the start of a new year. Financial institutions and mutual funds seeking to be fully invested for the New Year. Upbeat year-end stock forecasts for a good January (the January Effect).

So, will we see a Santa Claus this year? Since October 1, the Dow is already up 7%, and the Nasdaq 100 is up 15%. Here are five good reasons why I believe we could see a continuation of this stock rally:

The Fed may postpone raising rates. According to the minutes of the most recent meeting, November 1, some board members oppose further hikes in the Fed Funds Target Rate. Pressure is mounting for the Fed to ease, especially with gas and oil prices down from their highs in September.

The Fed is pumping new liquidity into the banking system. M2, the broadest definition of the money supply, is now growing at a 7% rate, the fastest this year.

Corporate earnings are strong.

CPI inflation is likely to ease, following a sharp drop in gasoline prices.

Long-term interest rates have fallen back under 4.5%.

In sum, it’s time to stuff your Christmas stocking with stocks and join the holiday merriment.

Jewelry can be beautiful to look at, fun to buy, and can make bold and revealing statements about you. Hear are some tips for greater enjoyment of your favorite gold and silver jewelry.
1. Never swim in a chlorinated pool while wearing gold and silver jewelry.
2. Always apply make-up, perfumes, oils or colognes before you put on your gold and silver jewelry
3. Keep both your skin and your gold and silver jewelry clean and free of oil.
4. Using an absorbent, abrasive-free body powder on areas that your gold and silver jewelry touches your skin can help with skin discoloration.
5. If you do have any skin discoloration you may need to move to a higher gold content. Say, from 14K gold jewelry to 18K jewelry.
6. Are your gold and silver chains all tied-up in knots? If so, here’s a nifty little trick for straightening them out. Dust your chain with a little talcum powder and then try to unknot it. If the knot is stubborn, place a small drop of baby oil on a sheet of wax paper. Lay the knot in the oil and work it out with two pins; then clean the chain as instructed below.
7. Don’t be afraid to wear gold and silver jewelry together. Artful use of accessories that use both metals provide an effective visual segue’ or bridge.
8. For daily cleaning it is recommended to use a simple jewelry polishing cloth that is impregnated with special jewelry cleaner. These are widely available and are very easy to use. Store your cloth in a plastic zip-lock bag, and keep in your jewelry drawer or armoire. It is a good idea to have one cleaning cloth for gold and one for silver.
9. For a Super Spring Cleaning of your gold and silver jewelry, mix 1cup of clean warm water with cup of ammonia. Soak your jewelry in this solution for about 15 minutes; gently scrub with a soft, clean toothbrush, then rinse in warm water. Air dry on an absorbent paper towel. When thoroughly dry, you may lightly buff with a soft flannel cloth.
10. If a ring gets stuck on your finger; spray the area surrounding the ring with Windex. Wiggle and twist the ring right off.
11. For a slightly more “in depth” cleaning you may want to use a liquid jewelry cleaner.
12. For cleaning badly tarnished silver, here’s a neat little trick.
A. Cover the inside bottom of a heat-proof glass dish on bowl with a piece of aluminum foil, shiny side up.
B. Place the tarnished silver in the bottom of the dish, contacting the aluminum foil.
C. Add 1 heaping tablespoon of baking soda, and then slowly pour boiling water to cover the piece. The tarnish will gradually collect on the aluminum foil.
D. Remove your silver, rinse thoroughly, and polish.

Sam Serio is an Internet Marketer, musician and a writer on the subject of jewelry and gemstones. For more information on jewelry and gemstones, we cordially invite you to visit www.morninglightjewelry.com to pick up your FREE copy of “How To Buy Jewelry And Gemstones Without Being Ripped Off.” This concise, informative special report reveals almost everything you ever wanted to know about jewelry and gemstones, but were afraid to ask. Get your FREE report at www.morninglightjewelry.com.

In this day and age heaps of people prefer finding their swimwear on the Internet; buying online is an easy and correct way to shop in the comfort of your own bedroom.

It is important to ensure whilst purchasing swimwear on the Internet that it fits you exactly. When you procure swimwear on the World Wide Web always check that the store supplies a good quality sizing chart that presents all of the sizes you could require. With the aid of a sizing chart one can make sure to obtain a swimsuit or bikini that fits perfectly, therefore reducing the necessity to switch for another size. By and large most of the swimwear retail stores don’t provide an exchange of goods so it’s generally always better to opt for a shop where exchanges are allowed. Many online stores will allow the returns of swimwear if the tags and the original wrapping are also returned along with it.

Swimwear is an inevitable factor of the summer; despite this a large majority of full-figured females feel daunted at the prospect of shopping for swimsuits & bikinis that fit properly. These women even think about wearing caftans by the swimming pool or at the beach rather than looking unpleasant. Designers & shopkeepers are familiar with the fashion issues of the overweight woman, and are at last beginning to feature a wide array of stylish bathing suit designs in L sizes, & the best place to unearth such swimwear is to purchase swimwear on the Web. Find designer lingerie and swimwear brands from around the world at www.becheeky.com.

Oil and Gas Outlook

Chesapeake Energy, Petrol Oil and Gas, Eden Energy and CanWest Petroleum Evaluate Impacts of Current Environment on Future Oil and Gas Supply and Energy Prices

Ann-Marie Fleming www.OilandGasStockNews.com, www.NaturalGasStocks.com February 2006

Despite the recent storms, the overall mild temperatures that the United States and Canada have faced so far this winter has allowed for a reduction in pressure on natural gas supplies. Jeff Mobley, Vice President, Investor Relations and Research for Chesapeake Energy Corporation (NYSE: CHK) explains, “Short term prices for natural gas will largely be driven weather. We are fairly late into the winter heating season and we have had extremely mild weather to date with last month being the warmest January in over a hundred years. This resulted in a tremendous lack of heating demand at the peak of the heating season and relieved what had been considerable pressure on natural gas prices early in the winter. Looking forward, there is a substantial amount of natural gas in storage. Warm temperatures, particularly early in the summer, may be needed to generate incremental demand for natural gas fired power generation and help balance ample current gas supplies”

However, many insiders believe that the price of natural gas will remain high into 2006 and beyond despite the recent declines in demand and related price reduction due to the mild weather. Philip McPherson, Director of Research, C.K. Cooper & Company, describes the arena for natural gas moving forward, “With Natural Gas futures breaking $8.00 per Mmcfe for the first time since July this has everyone calling for $6.00 natural gas. It’s not going to happen. While storage levels are well above 5 year averages, a cold snap at the end of February could quickly restore a level of fear in traders pushing prices back to the $10.00 level. We have argued that natural gas will bounce around the $8 to $10 level this year dependent upon level. I think this recent sell-off in the natural gas names is a great buying opportunity as these companies are reaping huge profit margins even at $7 gas. Investors new to the sector must realize that just 4 years ago gas prices where $2 per Mcfe.”

As Paul Branagan, CEO of Petrol Oil and Gas (OTCBB: POIG) describes, “With record market prices late last fall followed by a relatively mild winter and storage capacity currently above the 5year historical range according to the Energy Information Administration (http://tonto.eia.doe.gov/oog/info/ngs/ngs.html), it’s to no ones surprise that natural gas pricing levels have fallen significantly in the past month. Nevertheless, current pricing trends are still well above those for 2005 and from Petrol’s point of view that remains a very strong indicator for continued aggressive drilling and development within the natural gas sector.”

In terms of oil, many experts anticipate a continuation of high prices. Tim Brock, a Consultant with CanWest Petroleum Corporation (OTCBB: CWPC) explains, “There are many reasons for the price of oil to stay above $50 per barrel; world events and world economies and demand will dictate what the future price is, but I think it is fair to say that we are into expensive oil.”

Don Sharpe, CEO of Eden Energy Corp, (OTCBB: EDNE) describes, “We think oil prices will remain strong in the medium term, say for the next 5 years. Projects to increase production from non conventional sources have long lead times and meanwhile global demand appears strong. Eden is preparing a number of high impact drilling projects and intends to be in position to benefit from this higher pricing environment. Of course, with higher prices come higher costs, and that underscores our belief that companies must build their drilling portfolio based on their own concepts and not be an industry chaser. This allows them to move projects forward without the high land costs we tend to see in pricing environments like we have now.”

Political uncertainty in specific oil producing areas has the potential to contribute to continued high oil prices. “Crude oil has been very strong of late particularly with geopolitical tensions in Iran and Nigeria, explains Mobley. “In general, the world oil market still is reasonably supply constrained with a limited amount of excess supply capacity. Current inventories have been built to a fairly comfortable level in no small part due to mild weather. Absent further geopolitical turmoil it may be difficult for oil prices to test record levels with inventories building short term. However, if oil prices were to be sustained below $60 per barrel, OPEC would be in a better position to cut production levels, potentially in their March meeting, which would provide support to oil prices.”

According to McPherson, “For 2006 we believe we could have a year of consolidation in oil prices, where weather and geopolitical news keep oil trading in a tight range of $55 to $70. This would be a good occurrence as it would give the world a year to adjust to these higher prices, before the next move, probably up, occurs.”

Industry Response:

Being able to balance exploration efforts, production levels and costs with changes in natural gas demand and pricing, is a necessary corporate strategy in particular as the industry is highly impacted by weather. As Branagan explains, “When the winter weather forecasts begin to gel this summer the market will adjust accordingly and like most independent producers we’ll continue drilling while we reconsider the focus of our activities and how to persist in improving our assets and revenue. Since Petrol’s production concentrates on shallow coal bed methane our development costs are relatively low and average well production although modest is relatively certain thus we are quite capable of sustaining a significant price reduction and still be quite profitable.”

As President Bush reiterates the need for the reduction of dependence on foreign oil, industry participants evaluate ways to increase the exploration and production of oil domestically. As Sharpe explains, “There are a number of things that government and industry can do together to help boost domestic oil supply. These would include streamlining regulatory processes, providing tax incentives to encourage exploration in more remote or high risk areas, and encouraging non conventional oil production from tar sands, oil shales and heavy oil projects.”

As described by Tim Brock, Canada has the ability, through the development of the Athabasca oil sands that has occurred over the last 10 -15 years, to help boost domestic supply of oil. “World’s largest deposit of oil of approximately 1.7 trillion barrels and using current technology recoverable is around 400 billion barrels of oil which makes it the largest secured supply of oil for the North American market. What you will be seeing is a significant amount of capital being invested in this region by several major corporations who believe that this area can boost the amount of oil that Canada is able to supply to the United States near term,” explains Brock.

Canada today provides around 15% of the U.S. oil needs and that will probably double over time according to Brock. “It becomes a strategic and interesting asset particularily for the Americans and as a result the Athabasca district has become a significant play and is being followed by the investment community very closely,” adds Brock.

Many believe however that this dependence on foreign oil is best addressed through addressing energy consumption levels. According to McPherson, “The only way we are going to reduce our dependence on foreign oil is to reduce demand. Consumers will either have to cut back or be willing to pay more for the oil. Additionally, even if the U.S. does lower their dependency the global economies of the world are decades behind us in efficiency. It’s widely known that 50% of the energy generated in India is lost during transmission from source to user due to their archaic power grid. China’s consumers barely have the means to afford a car, let alone one that is fuel efficient. These in and of themselves will propel oil prices higher over time.”

As Brock explains, “Ultimately we North Americans need to understand that we are into expensive oil and therefore we need to understand how to be power smart. Two things that need to happen, better production on one hand and on the other hand we need better use and we’ll see our way through.”

Emphasizing the need for long term planning, Mobley describes, “The country does need a cohesive energy strategy that makes sense with respect to economics and pays attention to supply and demand. There are plenty of long term fundamentals that are going to be supportive of higher energy prices, therefore longer term thinking is very important.”

Ann-Marie Fleming Ann-Marie Fleming completed her MBA in the United States, where she attended Webster University. She also holds an Honors B.A from the University of Toronto. She has over fifteen years of experience within the financial industry to include retail banking and brokerage, investment banking, and mortgage brokerage within the United States and Canada, with a firm background in corporate research.

Disclaimer: www.InvestorIdeas.com/About/Disclaimer.asp

©Copyright InvestorIdeas 2006

Financial and business risk is unavoidable because there is risk in anything you do, including — and especially — doing nothing.

There’s market risk — the risk that adverse market moves will cause you to lose money.

There’s opportunity cost risk — the risk that you let a great opportunity pass you by.

There’s interest rate risk — the risk that you will try to be “conservative” by investing for income only to see interest rates go much higher while you’re locked in at a much lower rate.

There’s inflation risk — the risk that your investments will loose value over time due to the loss of purchasing power.

There’s business risk — the risk that you will lose money in a business.

So choose your poison. Choose the kind of risk that you prefer because you can’t avoid it.

In order to make money, you should be a little worried. Because if you’re not worried, you’re not risking enough. Adventure is part of what makes life worth living. So don’t be afraid to take risks. In fact, if you want to get rich, taking calculated risks is absolutely necessary.

Don’t invest in a way that makes you feel comfortable. If you play for meaningful stakes you’re going to be worried. Someone said that worry is the hot and tart sauce of life. Once you get used to it, you can actually enjoy it. If you’re not at least a little worried, you’re probably not risking enough.

Of course, playing for meaningful stakes does not mean that you should be reckless and ignore sound money management principles. It simply means that it’s hard to become a successful investor if you’re making small bets in order to sleep better at night. You have to risk enough for it to be meaningful but you also have to preserve your capital if you want to stay in the game.

And don’t over diversify — the kind of diversification that is recommended by many financial planners who say to put a little money here, and a little over there, and a little somewhere else, until you’re spread out all over the place. You may not lose much, but you’re not going to become a successful investor either. Over diversifying also means that it is tough to get rich in bonds, CD’s, and other fixed income investments.

Conventional wisdom says to not put all your eggs in one basket. But my experience is that truly successful people do the opposite — they put all their eggs in one basket and watch that basket like a hawk.

So to achieve financial freedom, take risks. Make it meaningful — meaningful enough that you’ll may be a little worried. But you’ll be living life to the fullest. And, who knows, you may end up being very successful.

And, above all, enjoy the journey.

Copyright 2005

Larry Holmes invites you to visit http://www.Money-Management-Wisdom.com/
You will learn how to become debt-free, save and invest money, cut taxes, manage risk, and achieve financial freedom in a much shorter time than you dreamed possible.

Before giving our view on the best silver miner in the world a little background information is necessary. First, the reader should ask why invest in the mining industry at all? The answer to us is covered in our third rule of silver investing below.

This third rule of Silver Investing can be found in the global-investor book of Investing Rules.

This rule is one that many silver investors know quite well and the joys of watching your mining stock outperform the increase in bullion prices by a factor of two or three to one is exciting. However, leverage works in both directions and when the price of the precious metals fall back the mining shares fall back hard. This is normal market behavior and should be anticipated by the savvy metals investor.

Again, mining shares analysis is difficult and in the speculative area nearly impossible. Because of this fact, it is important to do your own homework carefully. Also you can subscribe to a service that provides insights into this area. We do our best to diversify and to give clear signals to area we think have merit. However, we are only human and have made errors in the past. It is the nature of investing that you cannot be 100% accurate, although for the first two years our report did have nothing but winners. Those days are over and in today’s market is it more important that ever to be careful and use proper money management.

If you do not wish to put in the time and effort required to succeed in this area of investing, we suggest you consider a gold mutual fund. Even with professional management not all companies are winners, but with proper diversification total results mirror the general gold equity market. Unfortunately, there is not a silver mutual fund at this time. This is a question we are asked quite often.

The Ten Rules of Silver Investing was available to paid subscribers only but we have decided to make it available for free to anyone that joins our free email list …

Requirements of a well run mining company

The best Silver Miner in the world needs to not only anticipate the future but also contain as many costs as possible. This can be done to varying degrees but fixed costs are great expenditures and variable costs are becoming more “variable” by the minute. The costs of power, water, and labor seem to be increasing without end.

The infrastructure needs to be examined for roads, power, water, and environmental concerns. The political climate is a prime factor in determining the merit of a project, especially in today’s global environment.

Naturally the geology is of prime importance. An accurate geological model needs to be developed which includes data from drill holes, test pit sampling, quality and grade analysis, and what additional drilling may be required. Enough data needs to be verified for a Canadian company to be National Instrument 43-101 compliant.

A preliminary financial analysis includes the anticipated cost of capital and what is expected for the prices of the minerals going forward. Guess wrong here and your whole project can be in jeopardy.

So by now you know most of the risks and would like our opinion of the best Silver Miner in the World. It is simply Berkshire Hathaway yes Mr. Warren Buffet may prove to be the best silver miner of all time!

Why would we consider Berkshire to be the best in the world?

1. No environmental impact statement was required for this mine.
2. No 43-101 statement was necessary
3. All geological data becomes unnecessary
4. Low overheadvery few employees
5. Political problems reduced substantially
6. Fix costs knownprice of silver at time of purchase
7. Variable costs (known?) -storage costs

Why is Berkshire the best miner? Profit, yes profit, even adjusted for inflation Berkshire has a profit in silver, this is not the case for almost the entire silver mining industry. Some will argue this is not a miner at all, and of course that point is obvious, what is not so obvious is how smart it is to let others mine silver at a loss, and then pick up the end fungible product at a cost lower than theirs.

Ted Butler did a nice article on the Buffett purchase of silver. What is so fascinating is that Buffett mined silver right off the exchange at a cost below what most miners are able to do. In fact as of last year not one primary silver miner showed a profit for the entire year. A few quarters of profit yes but on an annual basis no! This will change for fiscal year 2005 in our view and one of these companies has been in our speculative list for some time now. Please bear in mind we are speaking of total costs, not cash costs which miners are so fond of speaking about which neglect the actual costs associated with the mining of ore.

However, the point to be made is that a synthetic mining company is exactly what the marketplace needs at this time. The synthetic miner simply takes silver below the true (total cost)1 of production and stores in away. This would entail, a silver purchase program dealing with real silver obtained under strict requirements that should yield positive returns to investors.

At this time the preliminary work has been accomplished to begin such a synthetic mining company. The initial circumstances require that institutional investors only be allowed to participate, however once established another may be available to the general investing public. However to implement this plan silver would need to be near the current price in inflation adjusted terms. If silver shoots up from here, then the proposal simply would not be as effective. In other words, Buffett is a lock whether someone else can duplicate this remains to be determined. A free market approach to the proposed Silver ETF may be something the market needs currently.

In fact the proposed Silver ETF has some very interesting points we find for example:

The Official Sector

Unlike gold, there are no official statistics published by the International Monetary Fund, Bank of International Settlements, or national banks on silver holdings by national governments. The main reason for this is that silver is generally not recognized as a reserve asset. Consequently, there are very limited silver stocks held by governments. According to GFMS Limited in World Silver Survey 2005, at the end of 2004, government held silver bullion stocks total 164 Moz. Silver holdings held by the central banks and governments equal only a 10-week supply whereas for gold it is estimated that governments hold approximately the equivalent of 10 to 12 years of supply. Recently, countries like Russia, China and India have reduced their holdings of silver.

What is also interesting is what the proposed Silver ETF has to say about the U.S. dollar.

Between 2002 and 2004 the price of silver increased due to a number of factors. Among such factors are the decline in the U.S. dollar against other currencies, the poor performance of U.S. and other major equities markets, a surge in investment demand in commodities as an asset class generally, strength in fabrication demand, and the low level of forward selling by mining companies.

Sound bullish to you? It certainly does to us.

The key fact that very few outside of the precious metals community even consider is what Ibbitson Associates 2 stated in their conclusion on portfolio diversification with gold, silver, and platinum.

Quoting: Of the seven asset classes, the precious metals asset class is the only one with a negative average correlation to the other asset classes. Excluding cash, precious metals is the only asset class with a positive correlation coefficient with inflation. Precious metals provide a substantial hedge against inflation and provided a positive returns when they were needed most. End quote.

Further on in the conclusion section this report states investors can potentially improve the reward-to-risk ratio in conservative, moderate, and aggressive asset allocations by including precious metals with allocations of 7.1%, 12.5%, and 15.7% respectively.

Since many financial planners basically use a “cookie-cutter” approach to preparing retirement plans this Ibbitson study definitely will upset any astute in that industry that continue to learn. What would a CFP say to a client that had paid for proper diversification only to find our later that no exposure to the precious metals was given? Especially if this client knew that the precious metals is the only asset with a negative average correlation to the other asset classes.

We have suggested that during the second leg of this major bull market that more institutions will move into the sector and many private investors will begin to move into the precious metals as well. Now Certified Financial Planners have a tool and knowledge to move into real physical metal it may have an impact.

Coming back to Berkshire Hathaway, a special report about Buffett and Silver was written several years ago and is free to our paid subscribers, but one of the most profound aspects of his purchase is that it amounted to less than two percent of Berkshire’s holdings at the time. If Buffett were to bring Berkshire’s holdings to the conservative seven percent as outlined by Ibbitson Associates it would require more than twice the amount of silver presently on the Comex at this time.

Certainly there is much more to the silver story than supply and demand, in fact one of the most important points is proper portfolio diversification.

The Silver Investor
The Official site for the Serious Metals Investor
October 20, 2005

1 Total Costs include all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs, royalties and mine production taxes, net of by-product revenues earned from all metals other than the primary metal produced at each unit. This cost varies as grade, labor, and energy, transportation, and other third party costs increase.

2 Ibbotson Associates 225 North Michigan Avenue Suite 700, Chicago, Il 60601 Professor Roger G. Ibbotson, the company founder and Chairman, pioneered collecting the requisite data used in asset allocation and in quantifying the benefits of diversification. The firm continues to provide solutions to investment and finance problems for a diverse set of market. Ibbotson /Associates fills a growing need in the finance industry as a single-source provider of investment knowledge, expertise, and technology.

David Morgan has a BS in Engineering and a Masters in Business (finance and international business). David has been a private economist and precious metals analyst for over twenty years. He adheres to the Austrian School of Economics, although his degree is not from the Mises Institute.

Mr. Morgan is a contributor to FreeMarketNews.com and has written numerous articles, some of which may be viewed at Gold-Eagle Mr. Morgan also writes Silver-Investor.com Newsletter. His e-mail newsletter is issued on a monthly basis and includes economic news, overall financial health of the global economy, currency problems ahead. Mr. Morgan pours over nearly every metals, economic, and financial newsletter and business publication and digests it to save his readers valuable time and money! Reviews current trends, long term fundamentals, and specific information required for any investor, especially the serious silver or precious metal investor.