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Is Gold a Good Hedge Against Inflation?

Wed, 24 Aug 2011 18:39:39 +0000

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Sun, 10 Jul 2011 18:38:24 +0000

Belarus Potash Pits Chinese Growth Against Uralkali Ambitions
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Sun, 19 Jun 2011 18:46:58 +0000

Tens of thousands march against Euro Pact in Spain
MADRID (Reuters) – Tens of thousands of Spaniards abandoned their customary quiet day with families and friends on Sunday to march against the so-called “Euro Pact” and the handling of the economic crisis.

My Five Defensive Investments Against the Upcoming Inflation

Tue, 22 Feb 2011 18:38:43 +0000

My Five Defensive Investments Against the Upcoming Inflation

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Home Page > Finance > Investing > My Five Defensive Investments Against the Upcoming Inflation

My Five Defensive Investments Against the Upcoming Inflation

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Posted: Mar 21, 2009 |Comments: 0
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All signs tell us that inflation is around the corner. Today March 21, 2009, nobody knows exactly how steep price increases are going to be. Should we expect a rise between 5% and 15% per year during the next thirty six months? To which extent should we fear a much higher inflation?

Whatever the answer to this question, I am already adopting for my own investment portfolio a defensive strategy against inflation. Since I am too much of a dividend lover and I know little about precious metals, I am not going to purchase gold.

In my view, there are two alternatives that should lead to results that are roughly similar to purchasing gold:

* Investing in oil companies, since sooner or later, inflation will propel oil prices to a higher plateau.

* Buying shares of companies that operate in countries with short-term prospects of economic growth.

At this moment, I am considering the following five companies for possible purchases for my own investment portfolio:

1.- MARATHON OIL (NYSE:MRO). The current low price of oil has driven down these shares more than 40% during the last year. Their price/earning ratio today is about 5 and they are yielding around 3.5%. The profits of this company should rise if oil prices go back to the level of a few months ago.

2.- CHEVRON (NYSE: CVX). The low price of oil these days has pushed these shares more than 20% downwards during the last year. The current price/earning ratio is about 5.5 and the yield around 3.8%. This is another company that should benefit from a rebound of oil prices.

3.- CHINA MOBILE (NYSE: CHL). Their number of cell phone subscribers continues to increase and their profits should go up or, at least, remain stable. If the Chinese currency gains value, this will result in extra profits for international investors holding these shares. The current yield lies around 3.5% and the price/earnings ratio is about 10.

4.- TELKOM INDONESIA (NYSE:TLK). With a current yield about 8% and a price/earning ratio of 11, these shares allow an easy way to invest in the Indonesian economy. The company provides fixed line and cellular communications and serves more than 63 million customers.

5.- AMERICA MOVIL (NYSE:AMX). The price/earnings ratio is about 11 and the yield is around 1.5%. This company operates cellular phone networks in Mexico, Argentina, Chile, and other South American countries. They provide services to around 150 million customers.

These five large companies should offer no great operational surprises. I am risk-shy and this is the kind of investments I favour in my own portfolio. Can anyone guarantee a rise in the shares of oil companies and international telephone providers? No, nobody can offer such guarantee.

For my own investments, I try to rely on reasonable assumptions and these five companies seem reasonably well positioned to maintain their value in case of high inflation.

See John Vespasian’s blog

http://johnvespasian.blogspot.com/

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John Vespasian -
About the Author:

John Vespasian has lived in New York, Madrid, Paris, and Munich. His stories reflect the values of entrepreneurship, tolerance, and self-reliance. See John Vespasian’s blog at http://johnvespasian.blogspot.com/

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Companies lining up behind i4i in Supreme Court case against Microsoft

Thu, 30 Dec 2010 18:40:07 +0000

Companies lining up behind i4i in Supreme Court case against Microsoft
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Forex: Swiss Franc rises further against EUR and GBP

Tue, 07 Sep 2010 18:43:53 +0000

Forex: Swiss Franc rises further against EUR and GBP
FXstreet.com (Córdoba) – The Swissy extended gains across the board in the last hours reaching fresh record highs against the Euro and 20-month highs versus the Pound.

Gold Should Be Your Hedge Against Inflation

Tue, 22 Jun 2010 18:40:22 +0000

Gold to many is their new safe haven – Warren Buffet believes big returns in the stock market may be over – Gold has always been one of the premier ways to preserve wealth – Since 2001, The USD Index has decreased by thirty percent, and the price of Gold has increased over three hundred percent. Listeners are always welcome to receive a free gold investment guide by going to www.safeasgold.com or call 1(800)510-9594. If you’d like to listen to the rest of the show, you can do so via The Gold Show with Jonathan Rose podcast. Go to the following link to subscribe to the podcast. itunes.apple.com

Gold is Protection Against Currency Devaluation

Wed, 09 Jun 2010 18:39:33 +0000

The Gold Show with Jonathan Rose Inflation will cripple the US Dollar – Gold will preserve its purchasing power – The President has said that it’s going to get worse, before it gets better – You can back your IRA with solid gold – The recession could go on for 5 to 10 years – Not all gold is created equal; find out which is better. — Listeners are always welcome to receive a free gold investment guide by going to www.safeasgold.com or call 1(800)510-9594. If you’d like to listen to the rest of the show, you can do so via The Gold Show with Jonathan Rose podcast. Go to the following link to subscribe to the podcast. itunes.apple.com

Gold Investing: A Hedge Against Inflation

Fri, 08 Jan 2010 18:38:41 +0000

Gold Investment is an old age tactic of putting your money into something that you feel will increase in value over time. It is a liquid and tangible investment. There are so many motives behind gold investment. Some invest in the hope of future increment in the value, some because they love the yellow metal, some other for price speculation and so on.

Gold is slightly more risky than bonds, so you should be careful to pay attention to this. However, as a long term investing strategy, gold has steadily increased in value over time. Also, part of the reason that gold is worth so much money is due to its comparative rarity. Even though it is rare, If the markets were to become flooded, chances are good that you would lose money. However, gold has a tendency to stay relatively stable, or to increase its value, over time. The rarity of gold is what keeps it’s value up.

It can be a trading item, store of value, investment, insurance and others. You have the options of investing in gold, gold stock, gold bullion, gold certificates, options, forward contracts, gold linked notes and such other gold related options. Trading gold has also been an old established business. Trading may be like other currencies for future appreciation in the value.

How stable is gold investing? Well, the demand for gold is much higher than its supply. As you can tell, this is already good for people who are thinking about gold investing. Once there is more supply than demand, the price starts to rise. Since the demand for gold is almost twice the amount that is actually mined, the prices for gold are likely to go up steadily.

Speculation is the main cause for trading. There may be different types of gold investors like people who store gold, people who include in their portfolio, banks who keep part of their deposit in gold, financial institutions, gold bugs, speculator, petroleum speculator, portfolio hedger etc.

Gold may be included in your investment portfolio. But with other investment strategy, gold investment should be a part of your portfolio not the whole portfolio. Exposure to only one kind of investment can have negative effects should you run into a down time. You can invest in gold but with some research and knowledge. Investing is interesting but may be destructive for your investments. Like stock investing, in gold investing also you should do research and fundamental and technical analysis.

Just like diversifying your total investment portfolio, one thing that you should keep in mind about gold investing, is that you should not put all of your money into one type of gold investment. You should also not just go out and buy a bunch of physical gold. While this is a good way to build a solid and insured foundation, you should also be investing in some of the other parts of the gold industry. For instance, if you invest in gold mines that are not producing at their top amount yet, or in potential gold mines, you stand a chance of making more money in the future.

Gold values are currently at all time highs as the US dollar weakens in value, and oil prices continue to rise. The perfect time to invest in gold would have been a few years ago up to last year, however, timing the market is not the best strategy for non active investors. Dollar cost averaging is best for non active investors. What you would do is purchase gold in even increments over time, and the over all average cost of the acquisitions lowers as you buy gold in up times, as well as down times.

Visit http://eaglegoldcoinshop.com for pricing on American Eagle Gold Coins. You can find Eagle gold proof coins, and American Eagle bullion at auction pricing.