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Your Questions About Invest In Gold Stock

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George asks…

Questions about stock market if it crashes again like N 1929?

Curious to know how the rich stayed rich during the depression. (Did they pull out all their money before the crash?) Was the money worthless back then as I feel it will be this time around (Trillions in debt and inflation is going to kill the dollar).

Also if I invest in GOLD stock how do I collect if the stock market crashes and the second Great Depression hits? Gold would sky rocket but if our money isn’t worth the paper to print it on what good is collecting from gold stocks anyway?

How is Wachovia bank doing these days? Would they survive a collapse like the first depression? What banks will make it through a second depression? I understand Government doesn’t want to tell us this information to keep a panic from starting so I am researching myself.

I would like to use this example to get my point across. Let’s say the year is 1925 to 1927 (Just before the great depression) knowing what we know now what sort of advice would you give the average guy back then if you could travel in time for only 5 minutes and only warn 1 person? For example some people made it through just fine but how? What would you tell others back then to do just before the crash so that they were prepared and didn’t suffer?

I may be wrong but I see doom on the horizon and I would like to prepare myself for the worse case Scenario. You might call me crazy or tell me it will never happen and that is fine but I am curious what someone today should do (Financially ) if we knew the second depression was only months to a year away.

Of course pay off debt, stock up on food, barter etc… Just curious how I should move my money so when the dollar is worth 0 I still have currency to remain wealthy. I know people say to buy Gold and that is fine but that doesn’t stop people from knowing you have it and taking it. Let’s say we are 6 months into a depression and you are known for buying stuff with gold you will become marked as a target.

financi4 answers:

This is not like 1929. There was very little government debt back then. Back then some rirch people indeed did get cleaned out. Some did not. I expect that the same will hold true today. It would have made no difference if one could travel back for 5 minutes to tell one person at the end of 1927. During 1928 and 1929 the stock market made its largest gains. Also back then the average guy did not have a 401k or an IRA account. In fact the average guy was making about $15 a week. The average guy was not actually effected by the crash until the layoffs began. Then the fun began. What makes this one different is the mammoth amount of debt being piled up by everyone. People, governments, companies. You name it they are loaded with debt. This crash began when all of a sudden people realized they could not afford the McMansions they had signed on for thinking that they would be able in a years time to flip them for a tidy profit. They wound up flipping them all right, back to the bank that had no business loaning them the money in the first place.

In the worse case scenario, it appears that gold might be best. The only way out for this government is to devalue the currency. They have absolutely no hope of paying even a very small portion of their debt and they are getting ready to add another trillion in hopes of buying our way out. It will not work.

If you will notice, gold is about the only thing that has not lost 50% of its value. About every thing else has except government bonds. People seem to be buying them thinking that they are safe. Ha ha.

Michael asks…

Could a beginning investor start out at scottrade.com with investing in gold and silver stock – step by step?

financi4 answers:

First of all, awesome decision going with Scottrade. I’m a big an of Scottrade personally. Yes, you can totally start out as a beginning invest buying gold and silver stocks on Scottrade. There are two main options.

The first are exchange traded funds (ETFs). The two most popular have ticker symbols GLD and SLV. These basically track the price of gold and silver. Making your purchase is as simple as funding your account, understanding how much you want to allocate to each, and then setting a buy order to order the number of shares you can afford to purchase (you can either do this online, or by calling/visiting your local Scottrade office). If you have any questions at all, make sure to contact your Scottrade office – that’s what they’re there for.

The second option is buying shares in gold mining companies. This gets a little more difficult analysis-wise because you’re no longer just “buying the metal” but you’re buying a company that mines the metal. You’ll want to read some articles/books (such as The Motley Fool) to understand balance sheets, income statements, and the gold mining business. Once you’ve decided, you can then buy your stocks just like GLD and SLV. I really enjoy the ETFs and gold mining companies, but just advise you to do your research before buying any stock and consider starting with the ETFs because they’re a bit easier for beginners.

William asks…

Is it best to invest in gold ores right now in the stock market?

financi4 answers:

It might be. Most of these gold ores are valued at a lot lower rates than the current gold price. You need to find out what value the company is using. They tend to use a 3 year average, rather than keep changing their valuation with the gold price. I think most companies are using something like $650/oz.
You also need to know who is valueing the ores (is it JORC complient) and whether the resource is inferred,estimated or proven (these each have completely different valuations), what grades the ore is, how costly it is to extract and transport. Whether there is suitable space to process the ore etc.etc.

Daniel asks…

Under which kind of circumstances do gold stocks perform well?

I just started investing in the beginning of the year…I had a few people recommend gold stocks to me. Under which circumstances do gold stocks do well or bad in the stock market? Any of you guys invest in gold/silver? Thanks for your help!

financi4 answers:

I prefer ABX & AU stocks. They are too cheap compare with price of gold. Really cheap stocks. I have been loading up on ABX. It is amazing one. I am expecting 20% – 30% move up until year end, or at most early next year.
Gold will perform well when economy is struggling and when there are a lot of buyers.
Buyers will rush to gold, when central banks flood the market with money.
It may look complicated to understand, but lets take US central bank {FED} actions as example.
FED spend more than $2.66 trillion buying US government bonds in the past two years in order to stimulate the economy, that sent Gold price to all time high to around $1926 earlier this year.
Ever since gold has been falling. Why?? Because that amount of money did little to reduce unemployment PLUS the debt crisis in Europe is affecting the US economy.

So, what i am trying to say, investors will wait for more money from the FED. This is expected to happen late this year, or early half next year.

Paul asks…

How much money and I going to lose in the stock market tomorrow?

I’m heavily invested in gold miner stocks, which should shelter from some of the carnage but tomorrow should be more market wide pain.

With everything the way it is, whats going to happen in the market tomorrow? Particularly what will have so the Primary Metals -> Gold industry?

financi4 answers:

You could short the metals sector with this : http://www.profunds.com/profiles/profile.asp?id=135
and if you are long other stock sectors, there are many other short funds to “hedge” your portofolio.
Http://www.profunds.com/profiles/inverse.asp
http://www.rydexfunds.com/website/fund_info_fset.cfm?home=yes

but with all the instability in the MiddleEast, Iran and North Korea…..gold and most of the metals should gather support

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Ask Matt: Investing in Hollywood's Oscar gold

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Ask Matt: Investing in Hollywood's Oscar gold

USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com. Q: Do shares of the studios with award-winning movies outperform after the Oscars? A: Everyone
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Your Questions About Summary Of Stock Market Crash 2008

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Richard asks…

Summary of the Economic crisis?

Can someone give me a summary of the Economic crisis since 2007/2008, it started out with the sub-prime mortgage loans right?

Justin answers:

The US economy was struggling the whole period 2001-2007 with low yearly growth, flattening wages, and worker population increase (especially through immigration) making a tightening job market. People compensated for the economic slowness with real estate speculation and stock speculation. This drove up real estate and stock values every year till they were way over valued (they weren’t really worth their stated values but far lower ones).
Meanwhile a unregulated mortgage industry and credit industry were passing out mortgages/ and credit to people who they knew (should’ve known) couldn’t pay it back. The people wanted the easy mortgages and easy credit because a lot of people due to flat/ declining wages were living on mortgage refinancing and credit cards to make up the difference. The credit card companies and mortgage companies wanted it because they were making a lot of money on the interest and fees on all the loans. In addition the US government every year 2001-2007 added hugely through budget deficits and tax decreases to an already huge public debt. The situation could not last.
People began not paying on their mortgages and credit cards. The economy went into recession Dec. 2007 beginning to shrink. The end holders of the credit card debt, the mortgage debt, public debt, realized they were holding mostly ‘bad debt’ (worth way less than it’s stated value) and the ‘crash’ occurred summer 2008 as everything fell to it’s real value (wiping out about 33-40% of stated value). Such a big loss couldn’t be absorbed and the mortgage companies, credit companies, many banks failed and the stock market crashed as everyone sold.
In 2009 the government saved the mortgage companies, credit companies, and banks so the US would continue to have an economic structure and made up most of the losses by adding hugely (again) to the public debt. It then placed new regulations on mortgages, credit cards, stocks so it wouldn’t happen again.
This returned the economy to soundness. However, the economy had shrunk so much during the ensuing recession 2008/2009 that 15-20 million people from the work force were thrown more or less permanently from their jobs. This huge number of unemployed missing from the work force then kept the economy from returning to prosperity 2010-2012.

Daniel asks…

Stock Market. Please Help.?

I am a High School Student and i just need someone to explain to me or give a simple website that simply explains how the stock market has been for the last 10-11 years..just like important facts, like rises, downfalls and generl explaination of how it’s been..someone please help, i would highly appreciate it. Thank you very much and have a nice day =].

Justin answers:

Alright I can give you a brief summary about how the American stock market behaved since 2000.

– Late 1990’s = Major bull market for tech stocks. Everyone wanted to own one, often giving multi-billion dollar valuations to companies that haven’t even earned anything yet, all because it had a “.com” in its name.
– 2000 – 2003 = Bear market caused by deflation of internet bubble.
– 2003 – 2008 = Great bull market.
– 2008 = Stock Market crash & Subprime Mortgage Crisis
– 2009 – Persent = Slow recovery

Chris asks…

Is the World Wide Web proving what the bible says to be true?0r just the collective consciousness being tapped?

In 2001, the bot operators began to notice that stock market predictions were not the only matters being accurately predicted by the program and they began to take notice of the coincidence with occurrences and explored it further.

One of the First Accurate Predictions From the Web Bot Program Took Place in June of 2001. At that time, the program predicted that a life altering event would take place within the next 60-90 days. An occurrence of such proportion that it’s effects would be felt worldwide. The program based it’s prediction on its filtered web chatter content which, I guess you could say, ultimately represents the collective unconscious of society.

Regrettably, the program’s prediction proved accurate and the Twin Towers fell on 9/11/2001.

This is where it starts to become interesting. The bot program also predicts a worldwide calamity taking place in the year 2012. For those of you who study astrology, prophecies, and the like, you may already be familiar with this date.

Since then there have been a slew of predictions, some of which follow:

• The Space Shuttle Columbia tragedy when the bot predicted a maritime disaster.
• It accurately predicted the New York blackout in 2003.
• It forecast a major event in relation to Las Vegas 65 days prior to 9/11 – when the terrorists were actually in Las Vegas.
• The bot stated there would be an attack related to a commemorative event prior to an American 587 crash on Veteran’s Day.
• It read that there would be an attack on the house or assembly prior to the anthrax scare.
• The bot stated gun shot wounding referenced to Vice President Dick Cheney.
• Anthrax attack in Washington DC in 2001.
• Massive east-cost power outage in 2003.
• Earthquake in August 2004.
• Water-rising which lead to the Tsunami in December 2004.
• Hurricane Kathrina in 2005.
Crash of the US dollar beginning late 2007.

A summary of the 2008 predictions:

• Catastrophic collapse of the dollar is possible – as the language is active around that concept.
• Some kind of winter/spring natural disaster which caused people to become angry about government response.
• Possibly early elections, or at least calls for that because of anger.
• Global economic collapse possible in fall 2008.

http://www.dailycommonsense.com/web-bot-what-is-it-can-it-predict-stuff/

.

Justin answers:

Bot trends don’t show what’s correct, just what people are thinking. The market is built on what people are thinking.

Maybe you should have read the follow up article to the one you linked where he explained that web bot can’t predict things like natural disasters or the end of the world.
Http://www.dailycommonsense.com/web-bots-theres-no-magic/

David asks…

How scared should I reasonably be of the stock market plunge?

I don’t own any stocks or anything. But a few people at work are practically saying this is the end of days. One guy says he bought some guns and is stock piling food because soon there will be rioting and starvation. But other people say it’s only because of people like him who over reacts that there’s any concern at all. They say to continue business as normal. But let me be blunt, no one I work with, myself included has any real knowledge of any shit beyond what TV tells us.

So logically speaking at what level of concern should I have right now? Like should I be fattening up my pets in case I need to eat them, or should I just not worry and go on with my life?

Justin answers:

It’s not irrational to be very worried at this point.

Unlike the last recession, we had a lot of ‘brakes’ we could apply to the crash – the government bailed out the banks, stimulus spent, printed money to sell bonds and treasuries, etc. Not to mention, no one really thought the crash would be as bad as it was, so it took months for people to exit the market (and drive the markets down to their bottom).

If we crash again, this time there will be NO brakes. The gov can’t spend anymore than it has without destroying its currency (which means hyper inflation… Ie. A loaf of bread will double in cost).

Also, if we crash it will probably happen MUCH faster than last time because everyone is so afraid they will bail much quicker than they did in 2008.

I’m not prone to being doomday-ish about these things, but if you have the ability to store food it’s not a bad idea. Even if society doesn’t fall apart, you’ll save money because what costs you a dollar today will cost you 2 or 3 dollars in a year.

But in the grand scheme of things, soceity won’t start to break down until unemployment reaches 20 per cent or more. At that point we’ll have riots and crazy stuff start to happen.

In summary, no you dont have to worry right now (people invested do, but everyone else doesnt). In a few months, who knows, it could be a different story.

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Your Questions About Invest In Gold Or Silver

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David asks…

What sector of the share market would be best to invest in long-term?

Out of materials, financial and food and staples retailing, which would be best to invest in and why?

Justin answers:

Gold, Silver and Green Energy, good candidates in the long term. Water too may be a good one.

Check out www.moneyandmarkets.com, they have a FREE investment newsletter, its definitely worth a look.

Best of luck
AshForexTrading
www.forex-trading-domain.com

Chris asks…

Why is gold recommended to everyone as something to buy as protection?

from a financial crash when most people don’t have thousands of dollars sitting in a bank account and they have nothing better to do with it than buy gold? Gold is too unrealistically expensive for the average investor. Is there anything that an average person can buy that will provide some kind of financial protection in case the dollar crashes?

Justin answers:

You can always invest in gold’s less expensive cousin – silver. It is a precious metal, just like gold is, but is less expensive. It has the same economic properties as gold, but has not shown the market bubble activity that gold has over the past two to three years. You also have the option of investing in a precious metals mutual fund (such as GLD or SLV), which has a lower entry price than physical gold or gold options. Another option is to purchase shares in miners of precious metals, which will increase as their revenues increase based on increasing gold/silver prices.

In any instance, investing in precious metals is known as a “hedge”. This is an investment that reduces the risk that you are exposed to in other areas. Historically, gold and silver have mostly retained their value relative to inflation, so while it is not an investment that you will see grow very much beyond keeping up with inflation (outside of unusual circumstances), it will not suffer losses as readily as other investments – including cash.

This information is only for educational purposes and is not intended to be investment advice or a solicitation to purchase any commodity or security.

Donald asks…

What does it mean to return to the gold standard?

A presidential candidate wants to return us money to the gold standard, I dont understand isnt money already backed by gold, if not what is it backed by.

Justin answers:

Gold is a commodity like oil, wheat, silver. Currently, the U.S. Dollar is attached to the Federal Reserve Note, a promissory note, rather than a commodity. Currencies today are traded in exchange-traded funds (ETF) So basically the Dollar is just traded in a different market than gold, but they play off one another as investments.

The value of both the Dollar and gold, (and all commodities) are determined by how much investors are willing to invest and hold. So it makes less difference than most realize. The more investors are willing to hold in Dollars, the less the value of oil and gold, and vice versa.

By attaching the Dollar to gold, you cannot increase or decrease the money supply, or set interest. Whereas the Fed (Federal Reserve) can increase and decrease the money supply, by selling or buying U.S. Government Treasury securities, with the notes, acting as currency, to regulate the economy

Thomas asks…

How can the U.S. realistically expect the economy to return to normal if we don’t have any factories to put?

people back to work. We ship all the work overseas. If we don’t have places for people to work here in the U.S. and not overseas. We will never return to the economy we once had when we had all the factories here making things for other countries to buy from us. We can’t make money on things that are not tangible like computer information, business operations, management, buying and selling stocks, and worst of all, printing money with nothing to back it up like gold or silver.

Justin answers:

1) Far more factory jobs have been lossed to technology than they have ever gone over seas.

2) The data shows that shipping labor creates far more jobs than it loses. Japan ships far more factories to china than the u.s. Ever did, and its only increased their productivity. They focused on hightechnology china doesn’t have the infrastructure to build. They then export it to china who asssmbles the high technology into goods people want. (Japan makes circuits, china makes cd players with factories built by japanese companies.

3) The biggest reason for this is that shipping manufacturing is usually low skilled labor, that is labor intensive work. U.S. For the most part (not during a recession) labor is scarce to infrastructure which is why workers here are paid high wages, while chinese workers are paid a few dollars. So in the u.s. It is better to focus on infrastructure intensive work. Great examples of this is that Japanese automakers are choosing the u.s. To manufacture cars, over say a 3rd world country. The most R&D for high technology (aeronautics, medicine, computer ) actually takes place in the u.s., more than any other country by substantial amounts.

4) Most of consumer spending the largest component of american g.d.p (70%) is on what are called nondurable goods. Manufactured goods are durables. To put it bluntly we have for a very long time, just like most other advanced economies made money on mostly intangible things.

5) Using gold and silver did far more damage to our financial system than it ever helped it. It restricts monetary policy. It can create a hard currency shortage, and substantially reduces liquidity (the financial systems own safety mechanism). Many countries back their currency with the u.s. Dollar, which has caused some the worry is the u.s. Dollar isn’t backed by anything. Our economy has been strong uptil now so it wasn’t an issue. Because of our lack of discipline (mainly governments) some economists are advocating going to use a mixture of currencies to back currency values. Majority of economists are against gold standards of any sort.

6.) We wouldn’t import everything from china if american saved more. Importing more than you export, means that you save less than you invest (investment meaning expenditures on building new houses, factories/machineary, inventories and other infrastructure). This is an identity that is expressed in national income accounting and current accounts. At the start of the financail turmoil a 3% rise in u.s. Savings rate instantly cut the u.s. Trade deficit (how much it exports in 3 months – how much it imports) in half. Meaning we are importing half as much as we were before, if you take our exports to china are constant.

7) Everything isn’t what it seems. Your notions on the world don’t guide you to how things really or necessarily are. Not to be rude, but the data doesn’t fit your assertions. What economists know about how economies work (and this crisis doesn’t defy our knolwedge) doesn’t fit your claims.

Our long term recovery depends on are ability to grow in the future by increasing our domestic investment without relying on foreign borrowing. It also hedges in my opinion on foriegners to stop using lending to the u.s. As a growth strategy as it raises there g.d.p. Lending to the u.s. Means exporting more to the u.s. Than they improt from u.s. Its a two way street. Foreigners need to save less (because extremly high savings) indicate that economies are producing more than tehy buy. (or Supply > Demand). For u.s. Demand > Supply.

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Schools investing millions in computers that are transforming – People

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Schools investing millions in computers that are transforming – People

North Carolina's public schools are investing millions of dollars in technology, spurred by federal grants. Most Cumberland County schools already have wireless Internet access, and every school will have it by next spring. Each school also
Educational Technology

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Forex – GBP/USD weekly outlook: February 18 – 22

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Forex – GBP/USD weekly outlook: February 18 – 22

Investing.com – The pound fell to six-and-a-half month lows against the dollar on Friday after official data showed that U.K. retail sales fell more-than-expected in January adding to fears over the economic outlook. GBP/USD hit a low of 1.5461 on
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Dollar down more than 1% against yen

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Dollar down more than 1% against yen

Investing.com – The dollar fell sharply against the yen on Tuesday, tumbling more than 1% after an official from the G7 said an earlier statement on exchange rates was misinterpreted. During U.S. morning trade, the greenback fell to session lows
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