Your Questions About Disadvantages Of Gold Investment

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Mark asks…

I need to know more about the benefits & risks of gold ETF?

I purchase gold coins as a part of my savings. I have an idea to buy gold ETFs instead of this.But i don’t know the procedure of buying it. Also i am not aware of the Advantages & disadvantages of it. Please tell me the details & some best gold ETF in India .Is it safe to choose this option ? ..

financi4 answers:

Buying physical gold is expensive because of the huge fees and commissions per ounce for both buying and selling, plus the risk that the gold will be lost or stolen.

If you just want to speculate on the price of gold, buy GLD traded on the New York stock exchange and available through any reasonable sized share broker that can clear US investments.

Richard asks…

what type of investment would best protect the purchasing power of a families savings of the event of sudden..

increase in inflation?

financi4 answers:

Typically, the area that is suggested to be invested in is gold.

Some suggest gold mining companies or gold bullion or gold coins. Each has their disadvantages. We have not seen a severe increase in inflation in quite some time.

You have to be cognizant of the fact that inflation doesn’t hurt everyone, mainly the people who’s salaries don’t progress at or greater than the rate of inflation.

This group tends to be the poor and the elderly.

Chris asks…

when did America become “The Promised land”?

When did people first start calling America a promised land.

financi4 answers:

I’ll have to disagree with part of Rosie’s comment.

The New World has always had a powerful attraction to the poor, the disadvantaged, the oppressed, the malcontents, and the adventurous.

Remember the Massachusetts Bay Colony was not founded by rich men seeking to get richer, but by religious dissenters seeking a haven where they could worship in their own way and maintain their English traditions.

Some of my own ancestors reached these shores as indentured servants, and lucky they did rather than be hanged as Jacobite’s or fall to the gentle mercies of “Stinkin’ Billie.” Another ancestor came to escape the crushing debt and oppression imposed on a Welsh peasant by English landlords. All of this occurred in the 1700’s, before the Revolutionary War.

To millions of starving Irish men and women, America was the Promised Land during the Great Potato Famine of the 1840’s. More millions of Germans fled their homes for the bright shining promise of America as their country was shaken by the revolts of 1848, and the growing oppression that came in their wakes.

After the War Between the States, as the Great Plains were opened to settlement by the building of railroads, more millions of Italians, Slavs, Scandinavians, and Jews from Russia and Eastern Europe flocked to America to escape grinding poverty, political oppression, and even genocide.

Sure there were plenty of people who came to America with gold in their pockets seeking to turn a quick buck. Hell, that is the American way! Some of those people made a fortune and returned to their homelands. More of them came, made and lost fortunes, and invested not only their money but their lives to build this country.

Our Western states would not have been settled without the infusion of foreign capital, nor would our industries that became the envy of the world have advanced much beyond infancy without foreign investment. The American cattle industry, railroads, and manufacturing were built with English, French, and German investment at a time when America simply did not have the ready cash on hand for such vast ventures. It is called capitalism, and I don’t think it is a dirty word.

Neither do I think profit a dirty word, as some people apparently do.

I can’t tell you who first called America “The Promised Land,” nor when they said it. But I will say that the United States has always been The Promised Land. We were the first nation founded on the principle that all men are equal, granted it has taken a while for reality to catch up with principle, but the principle was there. In the USA a man could stand on his own two feet and look the President square in the eye and tell him what he thought, unlike Europe until recent decades. Here a man could build his own destiny, he was not bound by laws and traditions saying that a twopenny Baron without a second coat was more important that a commoner without a coat of arms and a pedigree.

The United States has been the Promised Land, the bright shining city on the hill since it’s inception, and even before. If it is not the Promised Land, why are there 1 Million legal immigrants every year? Why are there not untold millions who risk their lives to illegally immigrate to this country, where even the poor are rich by the standards of their homelands.

It is The Promised Land, and we have a responsibility to defend that land, and not permit it to be inundated in a flood of Third World immigrants who enter the country illegally.

OK, I’ll let someone else have the soap box for a while.


Joseph asks…

what are some of the political risks involved in entering the diamond market in south africa?

financi4 answers:

As the South African mining industry is still predominantly white controlled, emphasis is being placed on stimulating black empowerment in the industry. As a result, several black or union owned firms are now beginning to play an important role in the industry. This is particularly the case following the impending legislation of the Minerals Bill that favours involvement of previously disadvantaged communities in South Africa’s mineral resources.

Furthermore,The entry of foreign investment into South Africa has been slow since the country’s first democratic elections in 1994. This has been due to a variety of reasons including the minerals legislation, uncertainty over the economic situation and the high crime rate. However, the situation is changing and many junior exploration companies are now active in developing several small to medium scale operations, mainly in diamonds, gold and platinum.

Canadian Southern Era was an initial success story with the opening of the Klipspringer diamond mine as well as Australian Aquarius Platinum that has opened the new platinum mine, Kroondal. South Africa’s fourth largest foreign investment came from global gold mining company, Placer Dome, which purchased 50% ($235 million) of the Western Areas Gold Mine, which includes the South Deep project, estimated to be one of the world’s largest known exploitable gold ore bodies.

Anticipated new mining regulations will further protect the interests of foreign investors by ensuring:

All holders of old order rights will be given opportunity to apply for the new prospecting or mining rights. These will replace the old order rights concerned.

Operating Mines – existing prospecting and mining operations will continue to cooperate unhindered and will be entitled to be granted the new form of prospecting or mining rights.

Security of Tenure – there is guaranteed security of tenure for prospecting and mining operations. This concept has two aspects, the first one is the State’s guarantee to the investor to honor his/her commitments and the second is the investors undertaking to comply with the law. Therefore, in the new dispensation the investor must ensure his/her own security of tenure by complying with the provisions of the law. The concept is encapsulated in the use it or lose it principle.

James asks…

what are disadvantages of investment in gold market ?

financi4 answers:

An investment that doesn’t earn an income

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