 Stock question? |
| How does someone make money when the stock goes down... This just doesn't make sense to me...... |
|
 Does volatility of a stock increases with increase in its price? |
| a 10% channel will be much wider if the stock trades at $80 than at $10..does that mean volatility increases with increase in price?... |
|
 Investing in Stocks-A Strategy? |
Hi,
I have about 50,000 dollars to invest in stocks.
What do you guys think about this strategy...
I would buy 10 mid cap-large cap stocks (5,000 worth of each) and try to sell ... |
|
 Mutual funds vs. stocks !!!? |
| difference , pros, cons and anything else that is related or comes to mind but still relevent ... |
|
 Is property in Greenland a good investment? |
| With global warming they'll be growing grapes there in 50 years.... |
|
 Ok I got $200,000, what now.? |
Here is the scenario.
Got no job, a wife and 3 kids, no debts and 200,000.00 in hand and no assets except a brand new Jetta automobile.
I'm thinking of renting a place ... |
|
 Could A company like EXXON MOBILE OWN THE WORLD eventually why or why not? |
| If you look at Exxon's financial statements it says they have 228 billion in retained earnings. What would keep a company like this from say buying wal-mart they could buy the whole thing with ... |
|
 Is Canada a safe place to invest in the light of the coming dollar collapse? |
| If the dollar really does collapse, will Canada come out a winner or will the significantly loss of US purchasing ability have a adverse affect? Does Canada have sufficient non-US customers to ... |
|
 Safest place to put money? |
| I have sold a small home and don't know whether I should take it to the bank or put it under the mattress! Just kidding! What other options do I have besides Certificates of Deposit? I don... |
|
|  |
Mr SmoothHead | Owning gold a good idea? |
I have about 8 ounces of gold (American Eagle) that I keep in a safe place. It's only less than 1% of my total assets.
Someone told me I should physically own some gold just in case something "bad" happens economically.
Is this a good idea or just wishful thinking?
If something "bad" happens economically I don't know how few gold coins will make any difference.
If it is a good idea, how much of my total assets should I have in having real (not paper) gold in my posession?
Thanks |
 |
 
aragon_the_younger
 |
Gold is a great store of value, but it's a very speculative investment. If stocks tumble, inflation goes through the roof, unemployment is rampant, and everyone defaults on their debt, that gold will be the most valuable stuff on earth.
However, if all that is going on, I think I'd rather have an arsenal, arable land, and potable water than a gold coin.
Most people who "buy gold" are investing in a gold fund, or a gold certificate of some kind. In a crisis scenario this will be worth about the value of the paper it's printed on. If you don't have physical possession of the gold, you don't have gold.
And that brings us to the final problem with investing in gold. The markup. A one ounce gold coin direct from the US Mint today costs $749.95. The quoted spot price of gold on commodity markets today was roughly $660.60 per ounce. But try to find someone who will sell you the physical commodity at the spot price and you will be sorely disappointed. Add to the markup the fact that the US Mint coins are 22K gold, while the commodity price is on 24K. On day one, by buying that coin your investment has lost about 20% of its value. |
|
Thin Kaboudit
|
"Owning gold" is a terrific idea if you are a business selling the idea that owning gold is a good idea. The usual marketing ploy is that gold "holds it value", which is actually a little less than truthful if you look up its historical prices. But there is certainly no harm in it if it's only 1% of your assets.
"Real gold" would actually be completely worthless if there were a serious Depression-era type crash, anyway. What you want on hand then is canned meat! |
|
cjwga84
|
Inflation = rising interest rate from the FED.
Rising rates = bad news for the stock marktet because of less liquidity.
Best inflation hedge? Gold or other commodities. Inflation is very simply rising prices. If the sotck market takes a beating due inflation, gold is a great hedging insturment, because its price will rise with inflation. However, the other responders are correct. Gold rarely out performs the equity markets. So if your looking to load up on gold holdings for a huge profit, forget about it. If you want a good risk hedging insturment...maybe a small holding in gold is not such a bad idea.
Instead of holding actualy gold, look into derivative contracts or exchange traded funds (streetTRACKS). They are alot safer and easier to liquidate than the actualy commodity itself. |
|
bob shark
|
Owning gold is fun, you should have 1 American Eagle gold coin
Because you can look at it and see you have a peice of the earth's soul.
But owning gold, as you say is good to survive a complete collapse of the worlds monetary system. But how likely is that to happen?
To make money on gold, you want a diversified investment in gold shares of producing Gold companies, because the stock will rise much faster than the price of gold, this is called leverage.
Your gold coins are sold at a premium to gold price(1 ounce coin cost more to buy than the price of 1 ounce gold) and to sell it, you get less than the value of the gold (sales charge) so gold has to go up a lot to break even.
So until it looks like society is collapsing. Keep your one gold coin, and among other investments, have part of your portfolio 5%-15% in gold shares, preferably through a no load precious metals mutual fund. |
|
lithium630
|
Gold is not a good investment. Gold has not beaten the market or even inflation over any significant length of time. If you are more conservative, invest in T-Bills or another guaranteed bond. |
|
WikiJo
 |
Lots of good answers today!
Equities are not gaining in real value when the underlying currency is shrinking faster than they can grow. The so called new stock market highs have still not equalled the absolute value of the same amount of money seven years ago, no matter whether it is measured in Euros, corn, cotton, wheat, copper or steel. The actual value of this "bull market" since 2001 is a net loss in real money for equities investors. Meanwhile, look at what has happened to the price of gold in that time. Also silver. There's your answer.
As to how.... that's up to you. Coins? A gold fund? Gold mining stocks? Gold futures? A gold ETF? (IAU , GLD) Several of the above? Hmmm. Maybe it depends on the most prominant reason why you want to own gold.
There are 3 reasons people hold gold:
1) An inflation hedge - protection against shrinking money.
2) An investment - like any other, betting on a price rise.
3) A tool to use in life after an economic collapse.
In the last case, people might use the American Eagle 1/10 oz. coins, or silver coins for currency again because of the precious metal value. They still are US currency but the metal content vastly out values their denominated value.
Good Investing!
;-)
***Wikijo owns some shares of the GLD ETF. |
|
Dixie
 |
Actually the more Gold the better. Yes It is a good idea. Just wish I could afford to buy some.. |
|
| |
|
| | |
| Questions List |
Answers | Last Post
| | | |
7 | 12 minutes(s) ago
| | | |
7 | 36 minutes(s) ago
| | | |
6 | 3 hour(s) ago
| | | |
7 | 4 hour(s) ago
| | | |
7 | 5 hour(s) ago
| | | |
7 | 7 hour(s) ago
| | | |
7 | 9 hour(s) ago
| | | |
7 | 10 hour(s) ago
| | | |
8 | 2 day(s) ago
| | | |
7 | 6 day(s) ago
| |
|
Homepage 
Financial
Forum 
Investing 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
