Investing Gold in A Smart Way

Recently, I just found out that Islamic countries like Indonesia has a very good system for gold investment in which it has a 1 : 5 leverage for gold investment, by using the Syariah Banking System.

In one of the Syariah Banking system, they have one service called "Gold Pawning", in which we can pawn our gold ( and I mean a Certified Gold Bar by PT. Antam Tbk, a Government - owned Gold manufacturer in Indonesia) to the bank with a very little cost. The bank could lend out 80% of the nominal value of the gold at that time with no interest rate (but pls put in mind that you still have a little pawn cost per month).

We can use this mechanism by first, buy a gold bar, and then pawn it to the Syariah Banking system, and receive 80% loan from the bank, and by using the 80% you can still invest more in gold. The good point here is that, although you only put 20% cost into the gold investment, you still receive 100% in increase of gold value. That is where the 1 : 5 leverage value coming from, meaning you just invest 20% of the gold value at that time, but you still receive the 100% in increase of gold value (or the bad news, the 100% in decrease of gold value).

This kind of investment only valid for long term investment plan, as we know that gold will increase for long term period. I personally didn't advise this type of investment plan for those speculators who only aim for short term profit.

Before any of you would go in depth for this type of investment plan, please make sure you check with your local Syariah Bank what are the pawn cost that you will be charged of. Also you have to predict gold prices to identify when is the perfect time for you to invest? The main point here is ... LEARN before you go in depth...and please bear in mind that .... PLAY THIS ON YOUR OWN RISK....

I myself have put almost a month study about gold investment before I really put my money into this .

Keep Learning ... and Take Action ....

Buy A House Without Money

Seems like I didnt drop by for a year already ... well ... it's because I m too busy reorganize my travel agent business and prepare it for Auto Pilot System, which is not easy at all.

Recently my company just bought an office with NO MONEY AT ALL.Well, if you said it's impossible, I'll tell you how I did it.

4 months ago, I joined an investment seminar that taught us how to buy house with NO MONEY AT ALL, and in return you still get CASH BACK and you don't have to pay the monthly installments using your OWN MONEY.

Well, after joining that seminar, I hunted for houses for almost 3 months, and after I got so desperated and going to give up soon, I saw one classified ads which showed there is an office for sale which sold for extremely low price, while the location of the property is located in prime area, which thousands of cars have to cross that particular location everyday.

I visited the property directly and found out that it's a quite old property (1980's) which need a massive renovation. After that I went back and talked to my shareholders regarding it, and we finally to buy the house at IDR 650 milllion. After some negotiation, we are agree at IDR 660 million. The closing cost of the property is about IDR 40 Million, and guess what, bank gives us IDR 700 million. This made us buying the property without using our money at all.

Well, there are some minor mistakes during the process. The market price of the property within that area is about IDR 1 billion, in which bank will mortgage it for 80% of the market price value, which mean bank will give us loan about IDR 800 million, giving us some cash back to do some renovation. But the fact is we had not enough time to find perfect bank that willing to give us such loan.

Second mistake is that we should have negotiated with the owner to give us 2 months time to get bank loan for the property instead of one month, which was not enough for us to find the perfect bank.

Well, for the monthly installments, we planned to renovate the 2nd floor tp 4th floor to become an exclusive boarding house, which we have calculated that it could cover the monthly installments.

If everything is go on as planned, the cashflow from the boarding house will cover the monthly installments, and we can use the 1st floor to become our travel agent office without have to worry about the rental fee at all.

The experience I went through with my first NO MONEY NEEDED property is quite worth it, beside the fact that I still have to learn more about the technique and negotation skill to find further NO MONEY NEEDED property.

IF I CAN DO IT, WHY CAN'T YOU ?

Save your Money: Guideline

After all, either we do business or we are still working, the main purpose is to have a better life. For that we have to SAVE MONEY. Well, I saw a lot of working societies are working to pay their 'last-month' debts, which occured from the spending of their credit cards. I felt pity for them.



Well, I have a few guidelines I got from the seminar I attended 2 years ago. The topic of the seminar is Financial Revolution by Tung Desem Waringin. If you're Indonesian, you will heard of this name before.



Every month, after you received your salary/ commission, divide them into three parts (the portion are up to your own judgement):



First Portion: Money to be spent.
In this portion, you HAVE TO spend all the money here, no matter what happen. It will make you appreciate your life and remind you of the purpose you have been working so hard.

Second Portion: Money for Emergency
For this second portion, you can use it in term of EMERGENCY. So, if it's not emergency, don't try it.

Third Portion: Money to be SAVED
You CANNOT use this portion AT ALL, no matter what is your reason. It will remind you of your hardworking job and how you have manage to have MONEY throughout your life.