Gold and Platinum Slide

It is important for many investors and the economy to be aware of current Gold, Silver, Platinum and other fine metal prices. It was published recently that all three have slid their price per ounce. Gold dropped 0.4% to 1,650 per ounce, Platinum slid almost 2% to 1,560 per ounce, and silver dropped to 31.27$ per ounce. This decline in rare metals can be attributed to a sluggish physical market as well as "turbulences in the global economy". For investors and recreational sellers and buyers, the price of these metals is important to keep record of. From personal experience, my Grandfather collects rare coins and gold pieces, while my uncle invested in Gold many years ago. These are sure investments because Gold is a "stock" that will rarely drop significantly. It would be wise to purchase these metals when they are selling low.

More information can be found at: http://www.reuters.com/article/2012/04/16/us-markets-precious-idUSBRE8390RW20120416

Goldman Executive Recieves Payraise

I wrote an article previously about the ethics and moral surrounding Goldman Sachs and they're business. I read and blogged about a former employee who saw changes within the company from a once consumer oriented business to one revolved around greed and maximizing profit at the expense of the consumer. It was released earlier this week that the Chief Executive Officer, Lloyd Blankfein, received a 15% pay increase since last year. This increase came in the form of 1.4 million in salary, and 3 million dollars in stock shares, including a 3 million dollar bonus. This is compared to the average american's annual pay increase of 3%. This pay package goes to show that greed and personal progress is the only thing on Goldman Sach's agenda. This is all occurring during a time of uncertainty; Goldman Sachs has shown weak performance, a loss of 1.1 billion dollars in revenue since 2011, and a share price decline of 46%. This also happens to coincide with the firing of thousands of traders, bankers, and staff in the previous years. This pay increase just widens the gap from employee and the top of command. Personally it is acts of greed and ignorance like this that make me question the idea of big banking firms. It is hard to trust a company with your money when the customer is of little concern to them. I find it particularly frustrating that during a time of economic crisis and banking crisis that the executive officers are only concerned of their own well-being.

More information can be found here: http://marketday.msnbc.msn.com/_news/2012/04/13/11183121-goldmans-ceo-gets-a-15-percent-pay-raise?lite

Solar Prices Drop

As an owner and supporter of solar power, I find the lowering of solar panel pricing to be good for the environment. Since the energy boom, many companies jumped on the solar bandwagon. This surge of companies created a surplus of panels and a lack of demand. Electric companies are paying less per kilo-watt hour now than previously. This was once a firm selling point, to sell excess stored electricity, now it is a mere byproduct of solar energy. Energy companies are buying back excess energy at 100$ per KwH, when they were once buying them for 1000$. Companies are currently fighting over the small group of supporters who are interested in installing solar panels. This fight for survival is leading to a price cutting war, almost to the point where companies are sacrificing profit in order to stay afloat. Panels are now selling at 80-85 cents per watt from a previous high of 95 cents in 2011. Stock has also been decreasing from an average of 2.71$ to 1.70$ for a Suntech, a major provider of solar energy.

Although companies are failing to show profit, solar panels and solar energy is very important to our economy and environment. It will continue to be vital into the future. With solar panels we can reduce our carbon footprint and rely less on fossil fuels. I truly believe the lowering in solar panel pricing will make this technology affordable and accessible to more families and companies.

More information can be found at: http://www.msnbc.msn.com/id/47043457/ns/business-going_green/#.T4uFKbMV1uw

Chinese Tourists Stimulate American Economy

It is no shocker that with China's strong economy, that they have money to spend. Fortunately for American luxury stores, they are primarily spending it in the United States. Chinese tourists prefer to buy luxury goods abroad because of China's high taxes. They can purchase luxury goods at approximately 1/3 of the cost. Luxury stores have taken notice of these increasing numbers and are beginning to cater to these wealthy clients. Many stores are introducing employees fluent in Mandarin and Cantonese in order to make wealthy tourists more comfortable. One store hosted a special after-hours event for wealthy tourists including drinks, appearance from notable fashion designers, and a private concert. This is all an attempt to tailor their message at the particular luxury crowd. This is a form of marketing at a special target market. To wealthy tourists the idea of exclusivity and authenticity is everything.

More information can be found at: http://www.nytimes.com/2012/04/15/business/global/american-brands-seek-favor-with-wealthy-chinese-tourists.html

Facebook takes over Instagram

To no surprise Facebook has purchased another media giant. In a little under 2 years from its start up Instagram and its 11 employee's was sold to Facebook for a mere 1 Billion Dollars. We could tell Instagram would be the next big sensation, hours after its launch thousands downloaded the application and caused the computer system to crash many times. At this time the co-founders phoned a veteran, Mr. Adam D'Angelo who had previously worked at Google and Facebook. Instagram is connected with many social media outlets, such as Facebook, Twitter, and even blogging domains. This purchase by Facebook marks another important milestone. This will allow Facebook a larger percentage of mobile phone users and mobile market share. I am positive this is not going to be the end to start up businesses cashing in on the social network, as well as it will not be the end to Facebook's media domination.

More information can be found at: http://www.nytimes.com/2012/04/14/technology/instagram-founders-were-helped-by-bay-area-connections.html?pagewanted=3

Big Buy Busts

Best Buy, the world's largest specialty electronics chain, has announced the closing of 50 stores throughout the United States. This move to close down 50 stores is part of a new remodeling plan by Brian Dunn. In the 1990's the "Big Box" formula made Best Buy very popular, but in the new age this formula proves less popular. Dunn plans to open up smaller stores to focus solely on mobile phones and tablets. This decision to close down stores coincided with Dunn's resignation due to "personal conduct" infractions. The company's board of directors launched an investigation into the misuse of assets by Dunn in an alleged relationship with a subordinate. This resignation comes at a very bad time for Best Buy and could lead to more bad news for the once leader in electronics retail.

I think this move to close the big box stores in order to make room for smaller, more focused stores is an interesting one. I do think that big box retail is showing less profit than online retailers which can provide cheaper products and larger variety. I think the move towards smaller retail stores will end horribly because their market share will be minuscule compared to the all ready established Apple, Verizon, and AT&T stores.

More information can be found at:http://online.wsj.com/article/SB10001424052702304444604577343884165564936.html?mod=WSJ_business_whatsNews

Is Facebook too Big?

Many people, including myself, have an excessive number of "friends" on Facebook, yet only really communicate with a few close ones. There have often been embarrassing links or pictures posted which are not meant to be shared with family members or certain friends. People have noticed these aspects of Facebook and have created smaller social networks to bring the intimacy back to social networking. Path is a smaller version of Facebook which caps its user's friends to 150. FamilyLeaf is a social network just for relatives and family friends. Pair is an even smaller social network that just links two people. These social networks include everything we have become accustomed too with Facebook like sharing pictures, links, and communication, but they add the benefits of security and intimacy. These start-up companies are gaining momentum and actually have wait lists for their users. Many of these smaller social networks are based only on smartphone devices. These new companies are showing us that intimacy and close relationships still are the overwhelming selling point. 

More information on these micro social networks can be found at: http://www.nytimes.com/2012/04/15/business/path-familyleaf-and-pair-small-by-design-social-networks.html?ref=todayspaper