Gold and silver or stocks?
Question:
metals are more riskey but possiable more profitable correct?
what about other metals like steel, copper, ect?
Answer:
I say the stock market, more specifically Mutual funds. Over the long rung they will continue to increase in value.
Right now Gold and Silver are hot. That's great if you bought it 4 or 5 years ago. If you look at the history of metals, they go up then they go down.
If history is any indication, they've about topped out. Buying now wouldn't be smart unless you think it's going to continue to go up. It's more likely to start back down.
EDITED: If you are reading that Mutual Funds are worthless, then you are reading the wrong thing. I'm just saying, before you rule out mutual funds, do a little more research. If you're new at investing (which is obvious) then mutual funds are the way to go. When you get a little more experience and have the resources to do your own due diligence, then maybe the stock market.
Unless you really know what you're doing, and do your research and play the market like a trader, your odds of making the magic investment are about equal to that of a chimp. Seriously. A better way, I think, is to develop and maintain a balanced portfolio of stocks and bonds, and if you like, precious metals, futures and anything else. While you're young, you can take more risk and keep more in stocks. As you get older, you should convert more shares (they have higher yield and also higher risk) over to bonds (they have lower yield and correspondingly lower risk). Bonds will guarantee money for your children's college, and for your own retirement. Good luck.
If you are buying silver or gold you must be much smarter and know more than the person selling what you buy, and later when you sell you must be smarter or know more than the person who buys what you are selling. Maybe. But maybe not. That is why speculating on price changes is a losers game. Additionally gold and silver do not pay interest, and do not pay dividends, and do not grow into twice as many ounces while you hold them. But they often do have carrying costs. And there are commissions for both the purchase and the sale.
Stocks can be just as bad if you buy intending to hold only for a short term then sell to somebody too stupid to have bought when you did and sell when you do.
But if you buy stocks and hold them forever with dividends being reinvested at prices that eventually will have been bargains, and continue buying when there is a hoped for drop in the stock market price, eventually you will be earning huge dividends that you can then take as cash for a great return.
More Questions & Answers...