Gold has witnessed some serious decline this month amid tight economic conditions in States. Gold is currently at $1,176.31 which dropped from $2,157.09, a sharp and unexpected fall. The economic situation has made it easy for investors to invest and make enormous profits from Foreign Exchange market and Stock Market. Euro has recently increased and economists believe that it will continue to rise till the end of September allowing investors to earn 22% profits on investments and therefore very few investments are being done in bullion and gold certificates.

The reason for fall of gold is due to precious metal’s slim demand however Gold miners are positive about the market in Future. Silver have also slipped to 0.8% in single day. The gold prediction in July and August looks bearish as investment opportunities in equities and trade have captured the market. The gold’s drop to eight-week low have already effected many countries regarding economic situation and other gold-backed investment portfolios. Analysts predict that after a short-fall in trade of Gold in the month of July, gold will rise to 11%.

[Source: Kitco]

British Pound and US Dollar Exchange rate is now 0.4% lower making 1 GBP = 1.5131 USD. Pound also lost against Euro where 1 GBP = 1.1961 EUR. The British pound has witnessed the lowest level since two weeks early this morning in London. The British Pound Sterling exchange rate has weakened against sixteen major and heavily traded currencies around the world.

The news about economic turmoil and no recovery of British job market has created uncertainty in forex market as investments have turned down to lower levels. The future of Pound sterling is seen as declining due to fewer trade and economic burden.

The UK government was previously warned about the economic conditions which would be faced by it in the matter of no time but the government paid no heed. The Bank of England has currently put at halt the change in interest rates which they believe will lessen the economic burden on middle-men. The forecast of British pound sterling is bearish. It is predicted by Jim Rogers that the UK government had made many mistakes which will now allow it to generate income in the upcoming four to six months. The prediction of Pound Sterling is negative because of the economic trends which have caused the government huge losses and no bailout is expected in shorter terms.

Investors are expected to benefit from the lower pound rates by buying bulk currency in the month of August when the exchange currency will be badly hit by recession.

The disastrous Gulf of Mexico oil spill has cost BP $3 Billion for the cleaning work, capping the leakage and paying damages to businesses and governments. Previously BP had to pay $20 billion funds for Gulf damages. The relief wells are being dug in the Gulf but may not work properly due to bad weather forecast.

Smoke was also seen rising from the oil spill site as natural gas was burnt off. After the recent damages bill, BP is now more vulnerable to a takeover by either it’s competitors or by the government. Libya have shown interest in buying BP Shares and it is quite possible for Libya to be a major Stakeholder of BP. Nearly 45,000 employees are working on the oil spill site for clean up purposes.

Since BP had to pay billions of U.S. Dollars for the worst oil spill in the history, BP is now selling fields in different countries to meet the costs. BP shares are expected to fall down very soon as predicted by analysts. The FTSE was seen falling down and the shares of BP were climbing but this trend will short-live.

Price of gold have been fluctuating since the last month as gold demand is sought in the market of China and Australia. The government of China is urging its people through television ads to buy bullion as safest investments. The strategy behind China’s policy is to let it’s people have secured and most profitable investments for future. Similarly, business groups and middle-class people in Australia are now shifting their investments and security bonds in to gold because gold provides hedge against currencies and investments.

The gold was traded lower in New York (Dow) but this trading have not stopped the precious metal to maintain it’s strength as analysts believe that as soon as the market will reopen, the gold prices will rise. The world stock markets are seen in doldrums but investors are not ready to switch to safe heaven. The gold demand in India also slightly rose and the banks of Myanmar were noticed purchasing bullion. “The drop in price of gold left fewer people attractive towards gold”, said Bob Hopkins, senior market strategist serving for Links-Waldock, Chicago. Analysts believe that the drop is just part of fluctuation and the gold price forecast is seen as inclining. This is the time to sell gold coins, gold certificates, bullion or gold jewelry or what ever form of gold could be sold because sooner the stock markets such as NYSE, FTSE, Nikkie etc. will recover and gold prices will drop down rapidly. The investors might move towards gold but it is not advisable to leave the stock markets and enter bullion. The right investors are now selling gold and buying shares rapidly. By the end of this year, the gold prices will rise again because a crash in stock markets is expected due to economic downturn in European countries.

FTSE has dropped to nearly 10 month low. The FTSE 100 is currently at 4,790 points and is still predicted to fall but analysts believe that the market will soon recover and will reach to 5,480 points. The matter of fact is that BP shares are on the rise which is not possible for investors to digest. The market falling and the BP shares rising is creating a panic in the market and investors are not sure about the future of the FTSE. The best time considered for new investors to enter market is now because the rates are lower and the shares prices are least. The investment sector should be targeted by previous market data prioritizing the airlines sector, food sector and energy sector. These sectors are predicted to give maximum returns on investments because their portfolio and market history have shown profits previously after decline. Investment in banking sector should be avoided because banks are also pulling their shares away from the market due to declining market and riskier investments.

The forex market is also getting stronger with weaker dollar and soaring pound. The euro currency exchange rate forecast have shown that the eurozone is likely start recover by the end of this month which will also allow the stock market to gain and incline. The future of the UK stock market is blurry and investors are panic-selling their shares which is not advisable at the moment. Pulling out investments from stock market and investing in Gold certificates due to Gold price rise is now attracting investors because they believe that the gold market provides hedge against the sinking stock market.

View the full FTSE chart at Wikinvest

The recent declining stock and forex markets have increased the gold price. The gold price trend as seen by senior analysts will continue to increase in the month of July and August. Analysts predicted that gold will reach $1261 giving it a 2.2% increase this month. The gold selling have been witnessed around the world in large quantity. Gold in India have seen heavy selling specially gold jewelry which is in demand. The market has yet to be saturated and investors are not interested in gold certificates or bullion because the US and UK stock markets will show progress by the end of July. Gold prices in August will be higher enough for gold investors to sell there gold certificates or bullion and make enormous profit.

Oil prices will also rise this month making energy sector in stock markets more attractive to investors. Gold and Oil is therefore the leading investment tool for players. Gold investments are safest because Gold is subject to market risk but many of the risks associated with gold prices are very different from the risks associated with other assets. There are now investments better than gold but to invest in precious metal means concrete investments. It is also known as hard cash because buyers of shares are comparatively harder to find then the buyers of gold certificates of bullion.

Recently the energy market has witnessed rise in oil prices. The international oil price has reached to almost $3 and is expected to rise in the coming week. Similarly diesel prices have also increased to 5 cents leading it to $3.08. Analysts have confirmed that the future of the energy sector is at stake as energy consumption has increased and BP crises have hit hard the world markets’ energy sector and the losses faced by the company would worsen the market.

On the other hand, the consumers have boycotted the BP stations and protested against the company for its recklessness. The measures taken to clean sweep the oil spill are not enough. Shell, on the other hand said that the deep water drill should be continued to meet the market demands otherwise the oil prices may rise to new extents. The critics say that the price of oil has doubled since Obama took control of the administration which clearly shows that they cannot handle the situation properly.

Investments that are exempted from tax are called Tax-free investments. There are two types of tax-free investments namely fixed tax and variable tax. In fixed investments, the investor is assured with the surety of return of the sum on maturity. In a variable investment, the value of the amount varies according to the luck and marketability of the original shares in a meticulous plan.

Generally, the tax-free investment term is used in markets where stock piling is usual and the rates of return are higher and tax-free. But what about those who doesn’t run a gas station or a grocery store, for them the there are multiple options; they first have to figure out that what type of taxes are applied in their country and on what savings or investments. This is the basic information one needs to know.

The second step includes categorizing the tax-free investment sectors. Generally, around 80% of countries doesn’t apply tax on sitting gold assets whereas taxes may apply on gold certificates or gold funds in some countries.

The second most common tax-free investment type is property. You must be thinking of property tax now, the math is simple, there are undeveloped areas in every country which offers lands in the suburbs or up-country. That is the second best investment opportunity for those who wants to invest and pay very minimal or no taxes at all.

The third option which gives good returns on investments are infact stock piling because buying in bulk and stocking up during sales saves you money. Ever wonder why those huge supermarkets have stocks ready all the time? Its because they invest in bulk buying and then stocks them up to boost up profits. They are the ones who make more money even after paying some taxes.

After the statement of President Obama, “We Will Make BP Pay” the grounds for BP is under heat since BP had to pay $20 billion funds quarterly to help clean sweep the oil spill. The shares market for BP has narrowed down and already witnessed a 18% loss which is likely to fall more in the near future as been predicted by analysts. Since the oil spill, BP has faced serious backlash from big oil rivals. The BP is now on hot seat as it has to face some serious criticism and future bailout plan if the BP shares crash. “The ball will never be in BP’s court” stated Kim Rogers, Financial Analyst of Financiere. The disaster was purely BP’s mistake since the CEO Tony Hayward apologized for the oil spill. The shareholders of BP should keep this in mind that they won’t be able to recover their losses in the near future and the best time to sell the shares is now when BP is somehow managing to show a 0.19% profits. After the fund allocation, the stock market may get affected by 3% in general but BP will face huge losses.

People generally consider Gold as the most safest, secured and highly profitable investments. It is a fact that Gold is very profitable but that is just not the limit. There are investments better than gold which can return more profit overnight or in longer term.

Since gold is now very expensive, currently standing at $1,222.91 which is not affordable for middle class investors or newbies. The extremes at which gold goes now is a 1.9% change.

Investment better than gold is no other than the sister of precious metal; “Silver”

Silver has this tendency of fluctuation and the reason behind is that the silver is not mined or manufactured any more. It is in very limited quantity around the world and no new silver is being discovered which makes it the real precious metal. Silver is used in many electronics and other devices and now the market of silver has risen rapidly which forecasts extreme demand of this metal in the coming time.

Silver moved from $17.42 to $18.40, a rise of $.98/oz., or 5.6% increase which is itself a major investment as compared to gold investments which only returned 1.9%. Financial analysts forecast that the silver will soon be an extremely rare metal and those who will have it would earn profits exceeding 30-35%.