Lately, a lot of buzz, cries and shouting out there that the world should go back to using gold as money. The purpose of this article is to show what will actually happen to us, to our ‘gold money’ if gold is actually being used as money, to replace our existing fiat paper standard. Let’s assume that we started to use gold as our money beginning in 1996, which is exactly 15 years ago.
First a little bit of history. Gold was widely used before but was removed by our grandfathers. Perhaps today’s generation forgot as to why gold was removed. Gold was found to be inherently unstable, difficult to be used as money. So it was removed and replaced with a better kind of money, our existing paper money. Paper money was so successful, it was the most successful kind of money ever. It is cheap, easy and almost counterfeit proof. Gold money possesses none of those ideal characteristics.
Now on to gold. In order to get the true value of gold, independent from the changes in paper money’s value due to inflation, we have to filter out the effects of inflation on gold. Once removed, the mask that hides the true value of gold will disappear, revealing the actual price of gold, its true price, due to its own supply and demand. The graph is shown below.
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On 21st December 2011, Bank Negara had officially launched the new 2012 currency series of Banknotes. The news regarding the new 2012 banknotes and coins was out since May 2011.
The newly designed banknotes are issued in the denominations of RM1, RM5, RM10, RM20 and RM100 and will be available for circulation starting in the second half of 2012. RM20 note is making a comeback after removal from the circulation a few years ago.
The RM50 denomination banknote for the new currency series is already in circulation. The new series featuring polymer substrate materials for the RM1 and RM5 banknotes.
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Amanah Saham Bumiputera (ASB) unitholders will receive a dividend of 7.65 sen and a bonus 1.15 sen per unit for the financial year ending 31st December 2011. This brings a total of 8.8 sen distribution income for year 2011.
This dividend is 1.5 sen higher compared to 7.50 sen declared last year. However, the bonus is 0.1 sen lower than the amount declared in 2010, at 1.25 sen.
Kindly refer to “Historical Amanah Saham Bumiputera (ASB) Dividend Rate” page, for previous year dividend.
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Call Warrant is an alternative investment that investor can invest in Bursa Malaysia. It can be traded through remisiers or via online trading, which is similar to trading shares.
The advantage of call warrants is that, it has unlimited upside similar to buying the underlying asset, but the loss is limited to the amount initially invested in the call warrant.
In order to make trading decision, normally investors look at gearing, premium, cash settlement & expiry date.
Below is the formula to how calculate call warrant gearing, premium and cash settlement. Alternatively, you may want to use free online call warrants calculator. The online calculator will calculate these parameters together with the trading profit or loss.
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As highlighted in 2012 Budgets, households who earn less than RM3,000 per months are eligible to claim for one-off cash assistance under “Bantuan Rakyat 1Malaysia (BR1M)”.
For those who are eligible, the registration will be opened until 10th February 2012 (extended date) at various locations including schools. Registration form we be distributed via newspapers and also can be downloaded from Ministry of Finance website.
An action will be taken against people who claim the one-off RM500 aid, but not qualify & submitting false information.
Below are the eligibility criteria,
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