Posted on 09/07/2011 7:00:15 AM PDT by Kaslin
So buy precious metals.
Right now we have a literally golden opportunity where the safest asset class (precious metals) is also the one that will grow most in buying power - at least until 1 oz of Gold = the DOW, and probably until 0.5 oz of Gold = the DOW.
Government bonds, banks, and green energy, if the politicians are honorable. Gold, silver and other commodities if they are dirty rotten scoundrels. You decide.
Nice little dip going on in PMs right now.
this poor kid needs to be told it’s OK to sit out this market in cash and read read read before doing anything
Wall Street has no rationality and will gobble up her hard earned savings faster than a trip to Best Buy
However she might choose a collectible that interests her and start small- buying Morgan dollars or French gold francs or US Mint proofs, for example
Agreed! I hope it lasts until my next payday (though I seriously doubt it).
Past performance is no indicator of future results, but historically, gold hasn’t been the magical investment you seem to think it has been.
http://www.investorsfriend.com/asset_performance.htm
It is folly to call gold “the safest asset class” and even more foolish to say that it “WILL grow most in buying power.”
Gold is ONE part of a prudently diversified portfolio.
I was looking at tiaa-cref.org at mutual fund possibilities and everything is negative for the year. I looked at bond funds and they are all about 5% up on the year. not much, but better than negative. The inflation protected bonds were up about 10%. I am going to get in bonds until 2012 and then move into stocks if a republican gets elected.
Ouch! What happened? From the chart it looks like any time it gets close to $1900 it gets smacked down hard and then starts climbing again.
I have an ex-wife, therefore thanks to government “guidelines” I’m broke..... barf
I have found this website to be a very useful source of information on the economy, gold, and silver.
http://goldismoney.info/forums/
Buy on the dips.
there does seem to be a bit of manipulation going on, doesn’t there?
Of course this would *never* benefit, say, China, would it? (sarc)
Even so “they” (whoever) don’t seem to be able to tamp it down, except temporarily
underlying conditions for the PM rush have NOT been addressed and what is the confidence they will be?
Let not your heart be troubled! Buy the dips if you can!
Right now it takes about 7-8 oz.
The current Gold vs DOW cycle won't reverse until it's 1 or even 0.5 oz of Gold to buy the DOW. Then you sell the Gold and move into real estate or stocks. Not now.
The same sharp gain in Gold/DOW ratio happened after 1928 and after 1966. Post-2000 is the third period of sharp gain in Gold/Dow. It's like clockwork, except that we now also have the possibility of fiat confidence disappearing entirely.
So my advice would be:
"Dear Reader. Get the heck out of fiat. Buy Gold and Silver NOW or spend the rest of your life pushing a wheelbarrow filled with Ben Bernanke Clownbux."
Good point about the coins. If she were to study just a little about the prices of rare coins she’d see they have been going up and up over the years.
Invest in a few high grade colonials, an MS65 1909 S VDB Cent - strong rarities have a strong return.
if she doesn’t wish to lose money, she should invest in nickels. Currently they are worth 6 cents each just for the base metal components. Currency debasement will come sooner or later just as it did in the past with silver coinage in 1964 and the copper penny in 1982. When that happens, all you need to do is wait for inflation to increase and your now collectible nickels will be worth much more than you paid for them. Currently, a pre-1964 dime is worth $2.94. A pre-1964 quarter is worth $7.35. Not bad for an original investment of 10 cents and 25 cents respectively. Considering the girl in the article will retire in 40 years or so if she’s lucky, her $5,000 in nickels will be worth a mint! The worst her investment will do is maintain its value.
thanks- fun forum!
Comment: “After that convoy into Niger, Qadaffi must be selling his gold today!”
Without Bank leasing of Gold and creation of paper Gold and paper Silver (e.g. the ETFs), the precious metals would long since have risen out of our reach.
All this manipulation has been a gift. I could almost kiss the folks at JP Morgan - except that I'd catch a ghastly disease.
bttt
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