Invest gold/silver while stock market boom?
Question:
But what is your opinion if to invest in gold/silver while stock market is bullish? Gold has been more expensive today than 3 months ago (remember China bought a lot of gold for reserve few months ago which trigger the gold price upward?)
Answer:
I laugh at people who say dnt buy gold because they haven't the slightest clue of whats going on around them.The above is just like a $million on a desert island is just as good as toilet paper.
Listen now its time to invest in gold. 1980 was an unusual time after the oil crisis thats why gold was at its highest ever recorded price in real terms (650 in 1980 will be 1000s? today). Now gold is at its cheapest and rising at almost China's growth rate.
Because the USD is devaluing rapidly
because not many countries around the world trust it
and US owe 7-8trillion without the backing from gold or other reserves.
Because the US bank has a 3X shortage of minimum gold
To protect China & India's growth, gold will be bought by these countries.
Even if you don't realise it, the world is even more dependent on gold nowadays.I can go on and on, but if you're are to check anyother investments, besides the 1980s. gold has been the greatest investment.
That's why the very rich buy gold & silver.
Gold/precious metals are a TERRIBLE investment, are really not a "hedge", and usually only make money for the people advising you to buy them.
Think about it, if you had bought $650 worth of gold in Jan 1980 (about an ounce), today it would be worth about (!) $650
On the other hand, $650 invested in the ("risky") Dow Jones in Jan 1980 would now be worth roughly $10,470
Cans of tuna fish are a better "investment" than gold, at least if there's a complete crash you can eat tuna fish!
You buy it when it has been dropping significantly so that when it rises again, you can make a profit by selling it. Right now is not a good time to invest in the precious metals you have mentioned.
Gold isn't more expensive... the dollar is just worth less. Holding dollars is the worst investment you can make.
Look at where the USD is headed and I think ANYTHING other than dollars is a good investment.
More Questions & Answers...