Is gold a good investment in a ressesion?
Answers: I always recommend buying actual gold and silver; not stocks, or bonds. The actual metals. In a bull market, there are three stages. Stage 1: speculators start investing in the commodity. At this stage, the general public has no clue that it is happening; just like no one knew that the housing boom was coming at the end of 1997. Stage 2: this is when big banks and governments are investing in the commodity. China, India, the EU, and the biggest banks in the world are investing big in gold and silver. Let's face it the US dollar has dropped in exchange value by 35% since 2002. This means that $100 now buys what only $65 could in 2002. You may have already seen the commercials asking to buy gold from TV viewers, assuring to pay top cash for it. If you did not get in during Stage 1, you must get in this Stage 2. I invested in 40 gold coins (US Gold Eagles, minted by the US goverment at $500 apiece only 2 years ago) Today, each coin is over $882. And since there is no paper trace because you actually hold the gold and silver, there is no taxes taken from the capital gain.
If you are waiting for Stage 3, that will be too late. This is the 2005 of the real estate boom, when every single person under the moon was talking about making money by buying property and this is the same stage in which people lose money and fall into foreclosure.
In any event, you can check the trends of gold and silver at kitco.com. I forgot to mention silver, I bought 400 ounces at $8 each 2 years ago and today silver is at $15.84.
You can't lose, gold and silver have been money for over 5,000 years, no paper currency has ever survived inflation.
Some people say gold is not as liquid. It is second only to cash. You should have at least 30% in your portfolio. Think of it as gold being the center piece of a rim. each spoke represents a currency. They all meet in the center. During these times now, go for gold, international bonds and funds, and last some possible domestic investing.
No, it is only good if you are expecting a recession.
Once recession hits the price of gold has already run up...
Remember, buy low, sell high :)
Recessions do not last forever. Plus, recession in one part of the world does not mean there isn't a booming economy somewhere else.
If you are looking for a safe place to put your money in the short term I would not recommend gold.
You have to remember the "Golden Rule."
Those with the "gold." Make the "rules." <}:-})
Gold is a great way to diversify your portfolio against economic fears, but the key is having it before recession hits. Another option is silver, it is far undervalued and has more room for growth than gold in my opinion. These are steady earners, and have actually been extremely lucrative over the past ten years. Investing in the precious metal mining companies is another way to take advantage of gold and silver prices. But yes, you can protect your money in a state of inflation if you keep it in gold. Swiss bonds are also very stable investments, although they have lower interest rates due to there almost non-existent inflation.
Get your self some nuggets they are cool.
gold goes up when the us dollar goes down and vice versa. If you think 2008 will continue to be a recession it could go higher. If you think the economy will get better then it will drop. I do think it is a little high to buy right now.
Gold is really a hedge for a time like this. A portfolio shouldn't make it more than 10% of your total assets. But remember, gold isn't a very liquid asset, so try looking at it as a long term investment.
Yes. If the currency weakens, gold will comparatively increase in value.
In times of uncertainty precious gems and metals are the safest bet to hedge against loss. There will always be demand for them in any market.
Kindly make clear to me..?
..What are three advantages and disadvantages of moneyAnswers: Money is any token or other object that functions as a environment of exchange that is socially and legitimately accepted surrounded by payment for stuff and services and in settlement of debts. Money also serves as a standard of good point for measuring the relative worth of different stock and services and as a store of value.
Advantages :
It is a greatly convenient medium of exchange. The alternative is the barter system.
A roof over your skipper, and food in your belly,
The opportunity to make choices.
Disadvantages :
It is smooth to cause corruption when you hold a medium of exchange that cannot be traced.It can be lost and impossible to trace the owner
The headache of keeping up near the joneses .
Paying the bills for all of that cool stuff .
What determines the price of a stock and whether it goes up or down in price?
Answers: There are too many things to mention here that could affect the valuation of a stock - but generally you will find more meaningful and predictive price movements in stocks with large market capitalizations, and riskier more speculative stocks under $12. Other variables are how many analysts cover the stock, who owns it (some are 100% instituional owned while others less than 20%), and what the future sentiment is on the stock. It does not necessarily correlate with future earnings. Compare symbols MXGL, which would be grossly undervalued by that standard, and AIG. Both are in insurance, but since AIG is the market leader it gets the higher P/E multiple or price earnings ratio (a standard measure of the value of a stock). Then look at Walmart, a retail leader and you see it gets an even higher P/E because it is viewed as a strong brand in a strong niche and perhaps higher growth potential than AIG.
Many books on the subject, read Benjamin Grahams Value investing book.
Supply and demand, people's emotions. If more people are buying a certain stock, the price drives up. If more people are selling, the price drives down. Sometimes someone with thousands and millions of shares can affect prices. If they're trying to dump those shares, they can single handedly drive down the price.