Is gold a good investment or will the price of it go down?
May 24, 2010 by
Filed under gold investment
I wanted to put a little cash away for emergencies but my husband insists gold is better.What do you think?
Investment Advice for the New Economy
May 24, 2010 by
Filed under gold investment
I wanted to put a little cash away for emergencies but my husband insists gold is better.What do you think?
Powered by Yahoo! Answers
Depends on demand and dollar if dollar goes down gold goes up. So if you think that dollar is gonna lose its value then you should make investment in gold.
Its good if you want to beat outs inflation (ever the long term – excluding any daily/monthly fluctuations), but other that, its not that great. You would probably be better set in blue chip stocks – WMT, MCD, XOM. Companies like those who have highly stable assets. At least then, you will not only beat out inflation (in the long term), but actually make money as well, Keep in mind this is all for long term. There will always be monthly and even yearly fluctuations that could off set your investment goals, but overall, they will average out.
For emergencies, you may want to keep most of your money (75% at least) in a money market account/CD/cash.
gold remains a purchasble commodity and i personally think you should invest in it
Gold is the international store of value because it has intrinsic value because it is portable & can be formed into jewellery unlike the data on bank computers called money.
The demand for gold always goes up in uncertain times such as the Credit Crunch then adjusts back to is perceived nominal value over time as people realise other currencies are more convenient for every day expenditure.
Since 1973, when the US Government first became unable to pay its way, the price of gold fluctuates with the value of the Dollar relative to other currencies daily as well as supply & demand of gold.
The best investment is always into real education (not schooling) so you know how to invest in assets to fund your life style regardless of the mess the economic state is in.
Your husband is a fool.
Does he wait until after all the sales are over before he buys a car? (“I just know we can pay full price if we time it right!”)…. Does he wait for toilet paper to come off of sale before stocking up?
Gold is at all-time highs right now, and has a long way down to go before going up much more.
Quality stocks are an excellent investment right now, but I will bet a dollar that your husband thinks stocks are “too risky”, and wants to wait until they cost MORE before he’ll buy any!
Before you invest in gold, read the June 29, 2009 (current) issue of Business Week magazine, page 55. The report is entitled “Nickel is Golden.”
Nickel is used in making stanless steel and in many of the batteries of hybird cars.
Gold is not an investment in the traditional sense. Although its price fluctuates and you have the ability to make money on those price moves it has traditionally been seen as a “store of value.” In other words, gold is a place to store your money long term and not loose it.
Gold is counter cyclical to most other major investment options because it reacts differently to two main stimuli…inflation and the devaluation of the dollar. Both inflation and dollar devaluation are bad omens for almost everything else in your portfolio (stocks, bonds, your home, cash, etc) but they make gold move upwards in value. I generally recommend that clients have at least some percentage of their portfolio in gold because of this counter cyclical behavior.
If you are interested you can find more information (including historical charts) here: http://www.superiorpreciousmetals.com/include/investing_in_gold_bullion_back_1.cfm