Hi everybody,
what is your opinion here? I'm wondering in what to invest?
I had a look at this article
A Reason to Like Gold / A Reason to Dislike Bonds
what is your opinion. I'm looking for more sources.
thanks, Tim
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Hi everybody,
what is your opinion here? I'm wondering in what to invest? I had a look at this article A Reason to Like Gold / A Reason to Dislike Bonds what is your opinion. I'm looking for more sources. thanks, Tim
Bonds are scam. All they do is take your money, spend it, and print new money to pay you back in de.valued $ (since they had to expand money supply to pay you). And charge you income tax on top of that. Gold is a sound investment option and is in a major bull market
I will give you a tip. Invest in mining co stock
QUOTE(~*~QUEEN~*~ @ Mar 6 2007, 02:37 AM) [snapback]3781195[/snapback] I will give you a tip. Invest in mining co stock try silver up 58% last year
Invest in gold, silver and crude oil.
i have account with stifx i am trading with them all currencies, gold, silver and crude oil so i can hedge my positions and grow my protfolio. Also you can trade futures / options and other products. QUOTE(maxpack @ Jun 22 2007, 04:37 AM) [snapback]4205965[/snapback] Invest in gold, silver and crude oil. i have account with stifx i am trading with them all currencies, gold, silver and crude oil so i can hedge my positions and grow my protfolio. Also you can trade futures / options and other products. mmmmm sounds delicious .......
Bonds are a lot more stable than compared to commodities. If there's a sudden find of a huge load of gold, you'd all be in trouble as the price of gold would fall.
Bonds on the other hand does not have such a factor with it. It goes with the economy. If everything runs smoothly, bonds will pay out good but bonds basically have less a risk (almost till none) as compared to commodities. Hope it helps!
Gold boomed in early 2002 from around $250-$290 an ounce to around $625-$650 an ounce within 5 years. According to history, these cycles tend to be quite long, at least 10 years. Based on that, we have another five years to go.
In the last up-cycle in the 1970s, it took gold nine years to move from $40 to $400 an ounce, but it them moved from $400 to $860 in a matter of months. In the 1980s, we saw a strong out performance of financial assets like equities and bonds. But we think we have passed an inflection point where commodities like metals will start out perform financial assets. This comes on the heels of high debts and structural deficits. Get more information and updates about gold investment from our blog http://blog.genuinegold.biz Feel free to visit our blog often. Articles and commentaries written by our managing director who is knowledgeable and experienced in gold investment. Very useful to those who are interested in gold investing.
When Gold went into the 800's, there was an attempt to manipulate gold and silver. Gold fell in value as fast or faster than it rose.
Problems with gold include storage costs and the potential for manipulation. Large sales or purchases by countries or funds could affect prices. It costs maybe a couple hundred dollars to mine an oz of gold. Good, insured Bonds are safer, less volatile. Of course they have less upside. When interest rates change, the value of the bonds change also. Countries also manipulate interest rates to support currencies, but it usually is slower moving.
Gold is a hard asset that you can hold on to. It has a price that reflects the cost of production and its demand in the market. Unlike bond, it is not a note issued by a sovereign nation that is a promise to pay. Should currency become worthless, gold will still be worth something.
Most of the world relies on 'fiat money', which is backed only by the promise of central bankers to pay. With government debts at an all time high, people start questioning the ability to pay. There is very strong credit creation in almost all financial systems and a lot more paper money around now. Then that happens, you get inflation. Gold is a hedge against currency debasement rather than de.valuation - that there is lesser confidence in paper and more in gold. Visit our blog http://blog.genuinegold.biz
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The Los Angeles Times reported "Anxious customers jammed the phone lines and website of Countrywide Bank and crowded its branch offices to pull out their savings because of concerns about the financial problems of the mortgage lender that owns the bank."
The idea that the increasing US trade deficit has more or less guaranteed a continuous decline in the dollar gripped the markets and this prompted a lot of speculative 'shorting' of the dollar then. That's fiat money, which is inflationary and destructive to the currency, and therefore in the end, the economy. So what does this mean for gold? Back in March 1985 when the S&L crisis hit, gold responded as expected. It rose 16% in five days. And this time around? The inflation and volatility in equity markets are all expected to prove as positive triggers for gold as investors add some yellow protection to their portfolios. This is especially becoming increasingly important as the US dollar has been seen declining in value to many currencies over the last few months. A rising gold price highlights monetary problems like inflation and bank crises. But gold is a messenger that just won't die, and rightly so. It is the only money that doesn't have counterparty risk. So gold is headed higher. QUOTE(hanzahar @ Jun 14 2007, 10:32 PM) [snapback]4186492[/snapback] try silver up 58% last year don't worry my chloe darlin trades that as well keeeekeeeee........
money is transient, gold is timeless
anyway, gold price won't fall below its production/mining costs. the mines will just stop functioning if the spot price drops below that costs. This will reduce supply and increase the equilibrium price again, so you can be assured that it wun fall below 400+ |