Your Questions About Advantages And Disadvantages Of Gold Investment

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George asks…

what are the advantages and disadvantages of American’s investment in Canada?

financi4 answers:

Advantages: Canada is on the border, so great for trade.
Canada has many world resources (fresh water, gold, oil, lumber), investment in those resources is a fairly safe investment

Disadvantages: Population is relatively low compared to a lot of countrise world wide.
China and India are rising economically much faster, and investing in those places can be cheaper when they have workers working for $1 a day.

Donald asks…

Which is the best metal to invest this time?

financi4 answers:

Gold Coins

Gold coins have a value that is not necessarily related to their amount in gold. Their value depends more on its rarity for collectors. Gold coins can be a good investment over long periods. It should be noted that the costs associated with buying, storing and resale can be up to 10-15% of the total. Few obvious advantages and disadvantages of investment in gold coins are as listed below:

* The gold coins are a relatively liquid as they are so easy to sell and buy.
* Low initial investment compared to buying a gold bar.
* People invest in gold coins considering them as safe haven.
* However, we usually can not buy anything in life every day with gold coins.
* There are a number of fake gold coins in circulation that are difficult to identify by non-professionals.
* The difference between the purchase price and the selling price (“spread”) is important – about 7%.

John asks…

What is the “gold standard?”?

Can someone please explain the philosophy of a “gold standard?” What does it even mean? Is the U.S. still on the gold standard?

Please assume as little knowledge as possible on my part in crafting your response 🙂
Thanks for your responses. Can anyone recommend a good book that will educate me on the ins and outs of currency valuation?

financi4 answers:

The gold standard ties the value of a country’s currency to the value of gold.

The US is not on the gold standard any more. The US and pretty much all countries have what are called ‘fiat’ currency. We have as many dollars as we say we have, not the number of dollars that our national reserves of gold can buy.

The advantage of the gold standard is that you can never have more dollars than you have gold to back them up. Therefore, your currency is resistant to inflation. If you just print a bunch more dollars and dump them on the market, then you have too many dollars chasing too few items, and that is called inflation. As prices increase, the value of investments in anything other than ‘real’ goods decreases, holding money in your pocket or in the bank will be decreasing the value of your money. When you convert real assets (e.g., gold, land, goods) into currency, you have to spend it quickly in order to not lose the value in the currency.

The disadvantage is that your money supply is dependent on the supply of gold, and if you need more money, you need more gold.

Joseph asks…

What are the options of Gold Investment?

Regarding investment in gold,I have the following questions:
1.How good is gold as an investment commodity?Is it good for short term or long term investment?
2.If I want to purchase for investment purpose only,which one is better:Gold Coins or Ornaments?What is the advantage and disadvantage of purchasing gold coin against Gold Ornaments?
3.In case of Gold Coins,where to purchase it from,Bank(which one you suggest) or any Jewellery shop so that it will be more pure in terms of quality?[hallmark,carat etc.]
4.How will I sell them? in Bank or is there any other way?
5.Can I sell one banks gold coin to another bank?
6.While selling will the buyer deduct some tax?
7.Can I take loan against gold coins?

Thanks in advance.
I would appreciate if I get response from Indian Market perspective,since am here.

financi4 answers:

1:it is a safe securty as a commodity it is a long term investment
2: for investment purpose gold coins are best in ornament making charges loss, loss in manufacturing and loss of purity and many factors are different between gold coins and ornments
3: no doubt banks are safe pure secure guaranteed
4: some banks are doung gold business some nbfcs also doing gold business city urban branches are now a days directly transacting gold coins
5: yes there is no diff. In coins for on bank to other
6:tax will be deducted based upon transaction value it is 10 percent with pan card or 20 percent
for non pan card holder it is per annum basis
7:yes certainly u can get gold loans without much difficulty

Robert asks…

Is silver a good investment.?

I am thinking about investing in silver because everything around us is getting more and more technological. Silver is a great conductor and is used in almost every home, commercial, and industrial electronic devices. I have never invested before so I would like some opinions on wether this would be a good investment or not? I’m pretty sure that the higher the demand of silver is the more it will be worth.
It’s not about being a lazy investor. I have no experience, and research alone is not enough. Feedback from real people is just as important as research.

financi4 answers:

It’s ok, but look at the advantages and disadvantages:

1) Good hedge against inflation
2) Good hedge against a weakening dollar from stimulus (and not just United States stimulus…that includes EVERYBODY)
3) It has, like you said, emerging applications in
-electronics (silver is the absolute best conductor of electricity PERIOD. The other poster claiming that gold was a good conductor of electricity is correct, but only in special situations. You would not want to wire your house with gold or silver wire as it’s totally uneconomical…and likely to get your house broken into and torn apart by theives! ,
-photography (although that’s on it’s way out. Silver Nitrate was once used as a chemical to develop prints, but now everybody is sticking to digital. That’s not saying it will completely go away, but the usage of silver nitrate as probably peaked).
-Medical Instruments (the main use here is in surgical equipment because bacteria and germs are less likely to live on highly reflective and shiny surfaces…silver fits the bill perfectly here.
And there’s many many more applications, but again, it’s all being developed as we speak

The only real disadvantage is a bar of silver does not throw off any cash flows. It just sits there, but it’s a precious metal and does not corrode like say copper or nickel. Thus you are essentially at the mercy of the market unless you buy a large amount and hedge the price action in the commodity.

If you gonna go the silver route I would suggest 2 options:
1) Buy silver coins pre 1964 or Silver Eagle Bullion coins. The pre 1964 coins will cost a little more than the typical ounce of silver, but the reason is that there is some numismatic value in there also. The silver eagles don’t have an enormous amount of numismatic value (in fact, only certain dates carry those values i.e. 1994, 1995, 1996, and the reverse proofs of 2006 and 2011, and the 1995-w proof coin), so you should be able to negotiate a good price for the regular silver eagle coins. Don’t expect to walk into a coin store or bullion dealer asking to buy the coins @ the current price either. You will have to pay a slight premium over the current spot price ( I like to use spot + 10% as my absolute maximum top price). A silver bar doesn’t do much for you, but you’ll end up paying a surcharge on that as well. I just like coins better in the form of American Silver Eagles because I know who made them (the United States Government) and the silver content is assured.

2) The best exchange traded fund out there is the iShares silver Trust (SLV). It tracks the spot price of silver and holds actual physical silver in a vault at an undisclosed location.

Hope this helps.

David asks…

Do First Nations want to be “Status Indians”?

I was told that all first nations people who are candidates for being status Indians are given the option to opt out. Can anyone think of a reason why one would not refuse the option?

financi4 answers:

Being a status Indian in Canada has many benefits, especially if you live on a reserve, although some of the disadvantages outweigh the advantages.

Depending on your Band, and whether or not it has access to goverment funding, lands, a Band can become self-sustaining primarily from selling or leasing land or allowing mining or whatever the land offers to outsiders. Sometimes property owned by a particular Band has gold or silver or natural resources that others will pay to discover, or it employs band members long term.

Certain bands with funds and investments provide allowances and tuition and book expenses for college and university.

If you live and work on a reserve you don’t pay many of the taxes that most others working off reserve pay. Gas, some foods, tobacco, alcohol, housing is all lower cost than outside of it.

Health Canada pays for medication, dental, glasses, anything related to medical care, all free of charge for status indians.

Status Indians are given priority in government job applications when they qualify.

William asks…

WHY Titanium? and powder metallurgy?

1. WHY is Titanium used for orthopedic and prosthetic implants??? If possible, list down all of the properties of Titanium.

2. What is the requirements for a material to be used as hip-joint material ??? Next, match the properties of Titanium with the requirements.

3.What would be the advantages and disadvantages of powder metallurgy?

4. Cite the best method for the production of
a). Gold ear-rings (investment casting?)
b). Pipe Connection (sand casting?)
c). train rail (continuous casting?)
d). large engine block for a truck (die casting?)

financi4 answers:

I think if you want a course in metallurgy you should go and pay for one.

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