As soon asthe Fed starts QE3 the gold price will rise because they have no other option. .Also there has been no major gold discovery in recent yeas.All the low hanging fruit has been mined.Paper assets will collapse along with most currencies becoming worth less and less.As an example about 4 years ago a large tin of Tuna in Tesco's was 90p its now £4.00 and thats a direct result of the BOE's QE and not a shortage of tuna .Theres a lot more to come and as I previously said after the MF Global debacle NO paper assets are safe.The only other good investment is Farmland or mining stocks which are very undervalued.Agnico Eagle and Gold corp are good buys.
I know no more than the next person and I asked advice as its very difficult to make my mind up. Petrol is going up as an example and its because the currency is being debased. There's no shortage of oil.QE is the debasement of the currency.I just use the Tuna index as one of the items every time I go into a shop to keep an eye on prices.Inflation is much higher than government official stats and gold is the antithesis of a debased currency.Thats the reason I have decided to invest in gold.
I understand what you're saying, but you shouldn't use the price of tuna, to prove your point.Personally, I may be wrong, but I don't think the price of milk has gone up for some considerable time, but that doesn't mean that the RPI or CPI is nil. They're what you should be looking at, not the price of one item that is rocketing. I also know that cafcfan is correct and you shouldn't put all your eggs in one basket. I'll let you check, but I have a strong feeling that the price of gold either fell or didn't go up for between 10-20 years in the not too distant past. I would never put all of money or even most of it, into one asset.
I understand what you're saying, but you shouldn't use the price of tuna, to prove your point.Personally, I may be wrong, but I don't think the price of milk has gone up for some considerable time, but that doesn't mean that the RPI or CPI is nil. They're what you should be looking at, not the price of one item that is rocketing. I also know that cafcfan is correct and you shouldn't put all your eggs in one basket. I'll let you check, but I have a strong feeling that the price of gold either fell or didn't go up for between 10-20 years in the not too distant past. I would never put all of money or even most of it, into one asset. That is a recipe for disaster. However, we of course don't know the amount involved.
The last time Gold was in a Bull market was between 1974 and 1980.It gained value from $35 to $870 thats nearly a 25 bagger. The same inflationary conditions are now prevalent. Gold and silver are being artificially suppressed just look at what happened in the bullion market 2 weeks ago when one years supply in paper silver was traded in 1 hour in order to suppress the price. The physical market will overcome this in due course.I believe the gold market will soon see a major spike.If Im wrong I will hold my head up.I am saddened that most working people are going to get shafted by the bandits that are running the system and all I want to do is to protect my savings from these people.I appreciate what you are saying but where can you put your wealth other than hard assets(farmland,miners and bullion) under the present inflationary circumstances?We live in a rather strange environment on deflation/inflation.House prices are on the slide but the basics of life food,energy etc are going up big time.
Don't give investment advice but take it constantly. Rule 1 If you don't define what your objectives are and the risks you want to minimise there's nothing to advise you about. Rule 2 Out performance is a theory used to justify higher fees, relying on stock selection skill only works if you are lucky and then only for short periods. Rule 3 Any information or view of the future is swamped by impact of unforeseen events Rule 4 Choose the asset that best matches objectives at the lowest cost and diversify according to objectives Rule 5 There's no such thing as a free lunch - high POTENTIAL rewards = high risk Rule 6 Fees have a bigger impact on outcomes than performance of a fund. Rule 7 Only 4% of the outcome of an investment comes from skill, 6% luck and 90% asset class selection. Rule 8 Lots of small bets are better than a few big bets
By the way I think gold is already falling as US economic prospects increase.
East Stand - you say you have no confidence in paper but that's how gold is priced! So in the last five years gold has increased in price some 200% against GBP but only 150% against US$. So you'll be taking a currency fluctuation risk as well as a commodity risk.....
As soon asthe Fed starts QE3 the gold price will rise because they have no other option. .Also there has been no major gold discovery in recent yeas.All the low hanging fruit has been mined.Paper assets will collapse along with most currencies becoming worth less and less.As an example about 4 years ago a large tin of Tuna in Tesco's was 90p its now £4.00 and thats a direct result of the BOE's QE and not a shortage of tuna .Theres a lot more to come and as I previously said after the MF Global debacle NO paper assets are safe.The only other good investment is Farmland or mining stocks which are very undervalued.Agnico Eagle and Gold corp are good buys.
There have been several major gold discoveries in recent years - check out the Co-O mine in the Philippines owned by Medusa, or the Egyptian Sukhari project owned by Centamin and the latter also own a few licenses in Ethiopia. Both have come on stream in the last few years and are expanding production year on year. Sukhari is on-target to produce around 500,000 ounces/PA and should get there in a couple of years.
Gold is a good investment though - not that much is extracted annually ca 2.5 tonnes PA and demand outstrips supply, also since the dawning of time only around 165,000 tonnes are estimated to have been produced (around the size of two Olympic sized swimming pools) and large quantities of it are sat in places like Fort Knox where it doesn't do much except gather dust.
I doubt though that with the election season kicking off in the US that there'll be any more quantitative easing, or if there is it'll be low scale. But the problems with Greece aren't that far off blowing up. I can't see the BoE printing much more money either.
Well good luck with that but I would certainly not put all my money in one commodity! I reckon somewhere between 5-15% in metals (or metal related shares, eg gold miners, is enough. I take it you will not be keeping it under the bed but will be paying someone to look after it for you? That'll cost aroung 1% per annum and if the price takes a hit - say Australia finds another large goldfield - you'll be feeling a bit sick. blockquote>
While you are right to diversify your investments the price of gold won't get hit if a new large gold mine is discovered. It takes years from discovery to extracting the first gold and that means building and developing a large mine to the point where it would resemble a small town and then expanding production gradually over several years as the mine grows in size.
From discovery to extracting enough gold would take at least five years and probably nearer a decade and then a few more years of ramping up production.
The problem with investing at the bottom is that you only know that it's there when share prices start rising. I know of a few people who dived in when companies like Lloyds and Barclays halved in a value in the autumn of 2008. The problem is they went much, much lower.
That said there is a Warren Buffet quote - "be greedy when others are afriad and afraid when others are greedy" and it always pays to bear in mind that share prices often fluctuate according to crowd behaviour and can gain or lose a lot of money quite quickly and for reasons out of your control. The best srategy in these uncertain times is to invest in what you know - if the whole FTSE 100 thing looks greek to you then steer well clear.
It's a big risk investing in financials when the market is first tested, especially when everyone's telling you it's a massive financial black hole. They're the heaviest hit, and no one really knows if their their risk management was up to much. Who could have told that Barclays would have held the third biggest bunch of shit mortgage securities' CDSs with AIG? I don't think anyone was saying they were playing other investors like Goldman Sachs, they just bought and held loads of utter shit, without Qatari money or a golden windfall they were as fucked as many others. I made money and lost money on financials. Lows on individual shares, especially financial, occur arround the second test in the new year or just dissapear with all your money. It's better to go for a wider market than risk it on a few shares in one sector.
Classic! Stamps were actually used as currency during the American Civil War. I've certainly gone large on 1st class stamp futures today - sure fire winner. Mind you a gram of stamps is still worth less than a gram of gold - but perhaps not for much longer.
Classic! Stamps were actually used as currency during the American Civil War. I've certainly gone large on 1st class stamp futures today - sure fire winner. Mind you a gram of stamps is still worth less than a gram of gold - but perhaps not for much longer.
30% price increase by the end of April... its like buying money
dont agree colin - if your investing for the long term, some stock market investment is probably wise. What you got against China - don't invest directly but investments that have exposure to china could well do well
Now that China are investing bucket loads on infrastructure, a particular iron ore extracting company seems excellent value. Most of the discussion forums expect a double your money return in time for xmas.
Any share (or any investment at all) where there was a likliehood of a hundred per cent return in 4 months would be the subject of a feeding frenzy. It's terrifying what some folk believe.
My two year old son has just got a £1000 windfall. What is the best investment for him? He already has a childs trust fund that I top up regularly. Cheers
No one can advise on an investment unless you set out some objectives. Maximise returns, protect capital, match inflation, beat inflation, provide capital or provide income. Most are mutually exclusive, there is no free lunch. The higher the return you target the higher the chances of experiencing lower returns and losing money. The less uncertainty you want the lower will be the returns. Investments which match income needs do not protect capital Protecting capital means exposure to inflation risk, the list goes on....
Your view of "risk" needs to include the risk of not achieving your objectives. Is it to fund University expenses over five years, Charlton Athletic season tickets over a lifetime or buy him a Ferrari for his 18th birthday. "Risk" to the investment community is actually "volatility", that is the risk of values moving up and down over measured time periods. A "volatile" investment will be high risk in investment terms but low risk if you want to optimize the chances beating inflation over a long run period (if you believe the past 100 years experience is a reliable marker!).
investment is made complicated by people who make a living out of making sure investment decisions are kept complicated. Investment management is very complex, but so is electrical engineering, the difference is you aren't forced to use an electrical advisor if you want to buy a light bulb. The unpredictability of life, politics and nature overwhelms any attempt any professional makes to predict what will happen to markets. A balance position is to assume investment returns cannot be predicted and assume a wide mix of different simple low cost investments in different core markets to ensure you are not exposed to any single calamity affecting any single market.
We are all biased and have different perspectives on life and different priorities, so the best decisions are those you make yourself from an informed position based on some basic advice and a clear idea of what you want to achieve and what downside position you set as an acceptable floor. Getting good basic unbiased advice as distinct from being sold something which makes money for a salesman is the key, which is why I guess you've turned to CL.
London property either near a good school, university or station will double in 10 years and will give you a good rental yield in the interim. Very low risk with great return.
London property either near a good school, university or station will double in 10 years and will give you a good rental yield in the interim. Very low risk with great return.
I admit that London property is bucking the trend and showing a small increase i.e. approx 1% as apposed to the rest of the country. However with avearge property prices in London now running at £160,000 it would take a brave investor to think he would be getting £320,000 back in 10 years.
London property either near a good school, university or station will double in 10 years and will give you a good rental yield in the interim. Very low risk with great return.
ho ho ho...............I just hope you aren't a qualified financial adviser as you have just about broke every rule in the book.
I think I may just take you up on your "advice" and see you in 10 yrs time for a good compensation payout when my 100% profit doesn't materialise !!!
I do like this thread...............keep 'em coming !!
London property either near a good school, university or station will double in 10 years and will give you a good rental yield in the interim. Very low risk with great return.
ho ho ho...............I just hope you aren't a qualified financial adviser as you have just about broke every rule in the book.
I think I may just take you up on your "advice" and see you in 10 yrs time for a good compensation payout when my 100% profit doesn't materialise !!!
I do like this thread...............keep 'em coming !!
Of course he's a qualified FA. Just like everyone on here is also a qualified lawyer, manager, "used to drink" with every celebritity mentioned and is best friends with the whole Charlton squad and back room staff.
Comments
NB What has QE got to do with the price of tuna ? Yes tuna has gone up but plenty of items haven't.
I also know that cafcfan is correct and you shouldn't put all your eggs in one basket. I'll let you check, but I have a strong feeling that the price of gold either fell or didn't go up for between 10-20 years in the not too distant past.
I would never put all of money or even most of it, into one asset.
Anyway best of luck.
Rule 1 If you don't define what your objectives are and the risks you want to minimise there's nothing to advise you about.
Rule 2 Out performance is a theory used to justify higher fees, relying on stock selection skill only works if you are lucky and then only for short periods.
Rule 3 Any information or view of the future is swamped by impact of unforeseen events
Rule 4 Choose the asset that best matches objectives at the lowest cost and diversify according to objectives
Rule 5 There's no such thing as a free lunch - high POTENTIAL rewards = high risk
Rule 6 Fees have a bigger impact on outcomes than performance of a fund.
Rule 7 Only 4% of the outcome of an investment comes from skill, 6% luck and 90% asset class selection.
Rule 8 Lots of small bets are better than a few big bets
By the way I think gold is already falling as US economic prospects increase.
Gold is a good investment though - not that much is extracted annually ca 2.5 tonnes PA and demand outstrips supply, also since the dawning of time only around 165,000 tonnes are estimated to have been produced (around the size of two Olympic sized swimming pools) and large quantities of it are sat in places like Fort Knox where it doesn't do much except gather dust.
I doubt though that with the election season kicking off in the US that there'll be any more quantitative easing, or if there is it'll be low scale. But the problems with Greece aren't that far off blowing up. I can't see the BoE printing much more money either.
Most of the discussion forums expect a double your money return in time for xmas.
Bellzone Mining (BZM)
What is the best investment for him?
He already has a childs trust fund that I top up regularly.
Cheers
Your view of "risk" needs to include the risk of not achieving your objectives. Is it to fund University expenses over five years, Charlton Athletic season tickets over a lifetime or buy him a Ferrari for his 18th birthday. "Risk" to the investment community is actually "volatility", that is the risk of values moving up and down over measured time periods. A "volatile" investment will be high risk in investment terms but low risk if you want to optimize the chances beating inflation over a long run period (if you believe the past 100 years experience is a reliable marker!).
investment is made complicated by people who make a living out of making sure investment decisions are kept complicated. Investment management is very complex, but so is electrical engineering, the difference is you aren't forced to use an electrical advisor if you want to buy a light bulb. The unpredictability of life, politics and nature overwhelms any attempt any professional makes to predict what will happen to markets. A balance position is to assume investment returns cannot be predicted and assume a wide mix of different simple low cost investments in different core markets to ensure you are not exposed to any single calamity affecting any single market.
We are all biased and have different perspectives on life and different priorities, so the best decisions are those you make yourself from an informed position based on some basic advice and a clear idea of what you want to achieve and what downside position you set as an acceptable floor. Getting good basic unbiased advice as distinct from being sold something which makes money for a salesman is the key, which is why I guess you've turned to CL.
"Very low risk" I don't think so.
More likely average UK property prices.
I think I may just take you up on your "advice" and see you in 10 yrs time for a good compensation payout when my 100% profit doesn't materialise !!!
I do like this thread...............keep 'em coming !!