Your Questions About Invest In Gold And Silver

0
0
0
0
0
0
0
0
0
or copy the link

Paul asks…

When I invest in gold, do I have to wait until the third generation to sell to make a profit?

If you read this, do not invest in gold…You only live to regret what a scam it is. The price of gold; what you pay over the market prize; shipping; Money transfer fees… VS. the price they will be paying you for the gold is too little. Even if you sold an object you only purshase with no intention to sell in an emergency… Still, do not match a good price years later. Only gold buyer make money with gold. And you do not have the connections. So our government lies obout such investments and that you can travel with such valuables, because it is not true. And fvck YUD PREZIOSI in ROME!

Justin answers:

I think gold is not a good investment. Silver will be much better. How soon? I don’t know. But I am expecting it to be really hot within 30 years. That’s less than 3 generations. 😉

I am sorry that you found out the hard way that you shouldn’t buy gold and silver from these catalogues they send you in the mail or from companies that advertise on radio. The best way to buy physical gold and silver is locally though coin and bullion stores. You visit all local gold and silver stores in your city and pick the one that charges the lowest commission. In my city, there are several stores. There’s even one on the flea market. And their commissions are really insignificant.

Steven asks…

How can a portfolio of weakly correlated stocks increase returns?

Yesterday I read in market news somewhere that ‘commodities (gold, silver, oil, etc.) historically have a low correlation to the stock market, so by investing in them you can smooth out and improve your returns’.

Statistically I can understand how the sum of two low (or negatively) correlated stocks can intrinsically reduce risk and volatility, but I can’t see how low-correlation is related to increased returns at all. It seems rather the opposite, that by reducing your volatility you would be *decreasing* your total returns. Am I wrong?

Justin answers:

You are correct. Diversity will decrease volatility, but will generally not increase returns over the long term. Diversity best serves individuals who are older and may not have the time to weather downturns. Young investors are best served by leaning toward higher risk, higher gain investments because they can DCA (dollar-cost-average) and purchase more shares at lower prices during downturns, thereby reaping greater gains during upturns.

This asset allocation must be adjusted over time, as capital perservation becomes more important than potential gain as one ages. By the time one retires, he or she should have a portfolio consisting of stocks, bonds, real estate (REITs) and short-term assets such as money markets funds and CDs.

Powered by Yahoo! Answers