Is gold and silver good investments in the current economy?
September 11, 2010 by
Filed under Silver Investment FAQ
How will the collapse of the euro affect the US dollar
September 11, 2010 by
Filed under Silver Investment FAQ
How will the collapse of the euro affect the US dollar
It should drive the dollar higher as a margin of safety. The risk is the dollar is being subject to devaluation by higher U.S. deficits.
Gold for a short term trade maybe, but not for a long term investment.
Detailed answer on gold as investment based on over 25 years of data. Links provided for references.
http://answers.yahoo.com/question/index;_ylt=Ap7Iti02vj8s2yTxtYIykp_ty6IX;_ylv=3?qid=20100216145603AAx9Gmx&show=7#profile-info-ZlEUdQnpaa
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All the gold bugs never seem to like my answers on gold. Short term, yes at times it is a trade, but long term, you can’t argue against 25 years of factually documented history.
That is a tough question. Both are at or near historical high prices and there is certainly a fair amount of downside if the world economies get back on track again. However, if the problems in Greece right now are a “canary in a coal mine” warning as some are saying, then the prices of these metals could go much higher. I think the best advice is to invest conservatively in gold and silver – don’t go all in with your entire life savings, maybe 10%. Also, I would not buy the actual metal, or Eagles or any of that stuff. I invest in proxy investments: mining stocks like FCX and ABX which are gold mining companies. My favorite gold proxy is an ETF with the symbol GLD – this stock is actually backed 100% by gold holdings. It goes up and down very closely with the price of gold. I like this because it is easier to buy and sell a stock than a gold ingot or coin – no shipping costs and smaller commission for a stock trade than a gold buy or sell.
Gold will see $600/ounce before it sees any “significant new highs”, all but guaranteed. Since the year 1515 (yes, you read that right!), adjusted for inflation gold has maintained an average price per ounce of between $310/ounce and $610/ounce, with periodic (brief) excursions to higher valuations, always returning to that “average band”…
If you believe that economics and human greed & fear have fundamentally changed in the last few years, then may gold and silver ARE good investments…but if you think people are much the same as they have been since Nostradamus walked the Earth, then gold is on its way down, and soon…
gold and silver investment is a very good plan plan for investment because the value of those item are always increse.