Your Questions About Invest In Gold Stock

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Thomas asks…

I want to start buisness with 1 lakh rupees?

I have 1 lakh rupees and i want to start my own bisness.Please provide me some useful tips.Where to spend money? andwhich produch should i start with?i have 1 lakh.Should i go for real estate or gold or stock market or anything else.I want some good replies.Thank You.

Justin answers:

Hi , you can invest your money in stock market. I have the right person that gives you a maximum return with the minimum risk and with the guaranteed agreement their name is dhavalraj soni from share khan stock broking ltd. He is doing p.m.s. Services. So you are earn best return with no work and safe side of your money. Just contact me i will help you every thing with government agreement so……………

Steven asks…

How can I invest on welfare stocks? Which stock exchanges are best for investing in welfare?

I predict that welfare is going to keep rising in the future. Welfare for the rich and for the poor. So can I invest in SSI, Medicaid, Obamacare section 8 housing and corporate bailouts. I want to cash in on all this welfare.

Justin answers:

Invest in gold instead. It’s an investment in the inflation tax, which is a general case of what you are referring to. That way, you’re right regardless of whether the new money is used to benefit the poor via welfare or rich via corporate welfare. Either way, it’s printed money given to a protected class.

Ken asks…

Why is the economy so bad and what do you see happening in the future?What should we do to protect ourselves?

Will the dollar eventually become worthless? Should people be buying silver or gold and stocking up on food? Any suggestions on what people should do?

Justin answers:

The economy will get better. Usually economies, like the one in US, go through booms/busts. Currently we are in a bust. We’ll get out of it. Our nation has been through worse economic times- the Great Depression. Yet we got through it and I’m sure we’ll get through this one.

Will dollar become worthless? No, I doubt it. Though its worth has decreased, I doubt the FED and govt would let it become OVERLY worthless. Things can get better and I think our next President can help with this problem (esp if we find a way to cut down spending, which has led to debt, and devaluation of dollar).

What do I see happening in the future? I see that the economy will still be weak for now, but no worry. It will be okay. I heard that some expect it to get better by the end of this year. Yes its a long time. ANd yeah many will feel hardships and I’m not happy about that. But our economy can rebound and projections (at least what I hear) show us rebounding starting end of this year. I also heard some promising news before (Sacramento’s home sales have gone up somewhat and other small, yet good news).

Why is our economy so bad? Well, Cynthia…its a complicated issue. I’m not totally familiar as to why it is so horrible, but I do know a good amount of things as to why it is.

Check out this article by the BBC which explains the mortgage problems perfectly– (nice article on the American housing problem)
news.bbc.co.uk/2/hi/business/7073131.stm

To sum it up though, mortgages were given out to many people, a large number of whom weren’t able to afford it. The housing market, throughout the last ten, fifteen years, has been pretty strong. So that is why a lot of mortgages were given out, there was high demand. Unfortunately, a lot of people weren’t able to pay these mortgages back. To make things worse, some of them were adjustible rate mortgages so rates were high. Also, interest rates rose during this time, so they became more expensive. In the end, a lot of people were unable to pay them back. That was a huge problem. Banks weren’t getting the money needed to help pay down houses (big problem). Thus, they themselves were stuck with less money on hand and many homes became foreclosed.

Things were even worse with other problems too. There was a huge credit crisis. For a long time, many people were spending a lot (overly) on credit. They built up a LOT of debt. That just made people go into debt too. As a result, people were stuck with loss homes and very high debt from credit.

Another big problem was there were a lot of fradulent mortgage lenders too. They committed fraud and fooled people about how much the rates of the mortgages would be. As a result, a lot of people became scammed and this only added to the high prices of mortgages.

So home ownership has gone far down. The housing market is AWFUL. Its a very sad problem…and there are so many cases of fraud and debt. (Foreclosures +).

Unfortunately, that’s not the only problem. Gas prices have gone up in recent years. The problem was partially caused by huge demand. China and India have very high demand for gas. So, gas prices went up. Oil supply was also low. Bush’s wars in Iraq and Afghanistan added to tension and fighting in the Middle East. As a result, oil producers wanted to produce less (due to tension). Also, speculators, seeing this situation, caused the prices to be high too (they based their investing and selling on the situation of gas).

As a result, food prices went up. Why? Well many companies transport food and other supplies to different nations. With high prices of fuel, prices went up for these companies. They were force to put high prices upon food producers as well. Unfortunately, that led to high prices of food. Farmers have had a rough year too. Ethanol could be blamed as well. Some say that because less ethanol is used with food, there is less of it (ethanol is being used more for production of cleaner oil instead of making food). So that is possibly why corn prices shot up as well. Lastly, bad weather has hit different farms and areas in Asia and all across the world. That includes the storms and floods recently. So, food prices have gone way up.

Lastly, beside food and gas prices, there is the problem of the dollar losing value. This comes from high national debt (made by huge national deficits). Thanks to Bush’s tax cuts to the rich (which, unlike cuts in taxation to middle class and poor), the economy wasn’t really helped and the deficit grew. Furthermore, Bush also spent a lot of money, especially on the two wars going on (which we would spend less on if we had a good plan for both countries. Even anumber of conservatives agree that we haven’t had good plan for Iraq and Afghanistan until lately for the former…the surge worked, but yeah things are still kinda messy). But yes, the high spending and poor fiscal policy has hurt our economy. Its made the debt grow. That’s a bad thing…with debt growing, there needs to be a way for it. So, more dollars were printed. More dollars printed means that its supply has increased. With an increased number of dollars, their value went down. So things became pretty expensive and as a result, inflation went up.

The FED, noticing that we were possibly in a recession (some disagree so I’ll call it slow growth/slowdown, which nearly everyone agrees with), have tried to combat this problem. They had their best intentions in mind and in my mind, they did what they could. They lowered interest rates to help improve and encourage economic growth. Lower interest rates usually do that. They did their best. Unfortunately, there was a side effect. Lower interest rates caused more inflation. That is a problem with low interest rates- higher prices. As a result, we have high prices and inflation.

Unfortunately, the FED can’t raise rates without causing problems. See, with the housing crisis, and mortgages already having trouble being paid, they can’t raise intrest rates. Doing so would, as I mentioned before cause problems. It would make mortgages cost more (since some of them do depend on interest rates). It also would reduce economic growth, which is needed in this pretty slow economy.

I’m not sure what people can do about this…

But they can-
1. Cut down on their vehicle usage and use alternative energy/less usage of cars.
2. Buy cars with less MPG.
3. Be careful when buying mortgages and using credit. The govt needs to fight mortgage fraud and educate homeowners. They also need more programs to help people with such issues (to help them prepare, etc).

My brain’s tired…so I can’t go into solutions for the govt sorry..I hope I helped nonetheless! And no people shouldn’t be buying silver and stocking up on food. Things will get better, and it would not be good to be scared and start stocking up.

John asks…

What do people tend to do more of when the value of the dollar goes down?

I want to invest in stocks and want to see which company I should invest based on your answers.

Justin answers:

When the value of the dollar goes down, the export of home manufactured goods goes up.
Normally people buy a lot of gold and silver as safety too.
Walmart and Macdonald’s have been really good as of late.
Since the dollar is cheaper, it’s easier to acquire by those who want to buy it like the EU or UK…but financial institutions have totally messed up things so there is a bit of market insecurity, according to the media.
Ford had some sales up. I read in the newspaper they need to expand workers shifts to put out as many cars as possible, even with the current crisis.

Robert asks…

Is trading account necessary for dealing in gold etf in India ?

I want to invest in gold etf. Is trading account necessary to deal in gold etf or is there is any other means available. Also, please let me know the best gold etf to invest in India. Thanks in advance

Justin answers:

Tushar,
Gold ETF stands for Gold Exchange Traded Funds, means funds which are listed and purchase and sold through stock exchanges, in order to purchase you require demat account for the same.

The best gold etf funds are kotak gold etf fund, HDFC gold etf fund and reliance gold etf fund

http://mutual-funds-personalfin.blogspot.com/2011/11/best-gold-investment-options-in-india.html

Mutual funds come up with another option which is fund of fund option, means they invest in gold etf funds and investing in such gold fund of fund you don’t require demat or trading account.

I feel if you don’t want to go ahead with demat account then best is go with fund of fund
the best fund of funds are
Reliance Gold savings fund
HDFC Gold Fund.

Check this link help you understand more about different options of investing in gold.
Http://mutual-funds-personalfin.blogspot.com/2011/11/best-gold-investment-options-in-india.html

http://mutual-funds-personalfin.blogspot.com/2010/09/tax-treatment-of-gold-etf.html

James asks…

What could be some good companies to invest in?

i just got a fortune that says “Golden investment opportunities are arising.”
Should I invest in gold?

Justin answers:

Get a second opinion – go and eat at another Chinese Restaurant.

Seriously, there is no way that anyone can pinpoint stocks or commodities that will rise; if they could there would no need for them to work or toil for a living. And OF COURSE they will not share their secrets or knowledge with others ( who wants to give up their gravy train? ).

Your best option is to do lots of DD, or research on companies you like. Check out their financial health, their management style, their products/services, and their market potential. Then select the stocks you like, and observe their charts for a while – to see if they are being manipulated in any way, and to see how they rise and fall.

Once you have enough experience, you can start buying some stocks. Or buy Gold, or Silver, etc.

And then the fun begins – you are exuberant when it goes up, and distressed when it drops. You may lose sleep, and develop stress syndromes, during periods of great decline. You may spend all your stock profits on the doctor and medicines, and shrinks. Then the IRS takes even more away at tax time.

Better to go and eat at many Chinese restaurants until you get a fortune like ” marry a very rich woman “. Now That’s a one to be followed!

Charles asks…

What is a better investment today? Is GOLD better now then USA investments?

A few yrs ago it was a GOOD thing & easy to make money with stocks & bonds & mutual funds. I was watching a site where it showed how QUICKLY the debt is increasing. It was going up about $1000 a second. Is it better to invest with GOLD now rather then continuing with the above mentioned investments?

Justin answers:

I believe the gold bubble will burst soon.

Richard asks…

When Bush’s monkey at the FED inject a trillion dollar bailout into the economy hows the inflation going to be?

I would suggest investing in gold and guns.

Justin answers:

I note they want to raise the statutory “limit” on the national debt from 10.5 TRILLION dollars to 11.2 TRILLION dollars. This means they are spending money they don’t have to buy crappy debt from these banks.

I’m stocking up on ammunition and canned goods.

Grandpa

Mark asks…

What are the best stocks to invest in?

I am thinking about investing in stocks and am not sure which would be the best stocks to actually invest in.

Justin answers:

Before I give information on individual stocks, you need to figure out whether you know enough about stocks and can do the homework on the stock picks. Even if people give you suggestions here, you still have to do your homework on each one. If you do not have the time nor inclination to study individual stocks, then maybe you should just invest in index mutual funds or Broad Based ETFs (Exchange Traded Funds, mostly indexed mutual funds that trade on most exchanges like a stock. You buy and sell these like stocks).

Here’s more info and guided tour of whether you should try individual stocks or mutual funds or ETFs:
http://techfarm.blogspot.com/2007/07/how-do-i-start-investing.html

Now, if you do know how to do homework on individual stocks, and wish to create a diversified portfolio of 5-10 individual stocks in different sectors, here are a few suggestions for you to start DOING HOMEWORK on.

1. Basic Materials:
a. FCX (Freeport McMoran, Gold and Copper)
b. ATI (Allegheny Technology)

2. Consumer Discretionary:
a. GME (Gamestop) — Major gaming cycle is here (3 major consoles), large Generation Y
b. NTRI (NutriSystem) — obesity problem is a long term trend
c. SNDA (Shanda Interactive) — Chinese Online Gaming Company. Chinese Middle class is growing, and I can see them getting addicted to online games.
D. JBX (Jack in the Box) — Regional fastfood (growth to be national) with Mexican Qdoba grill exposure. You remember the Chipotle (CMG) spinoff by Mcdonalds?
E. CKR (CKE Restaurants) — Carl’s Jr. Fast food and other fastfood chains. Good small cap fast food long term growth at a reasonable price?

3. Consumer Staples:
a. UL (Unliver) — Much cheaper and better growth
than PG (Procter and Gamble)
b. HANS (Hansen) — Growth Drink Company
c. PEP (Pepsi) — Large diversified drink company
d. CEDC (Central European Distribution) — Central
European drink company)
e. WBD (Wimm Bill Dann) — Fast growing Russian
Diary and milk company. Look at the chart! Wait for
pullback?

4. Energy:
a. Integrated Oil:
COP (Conoco Philips)
b. Drillers:
ESV (Ensco)
GSF (Global Santa Fe)
c. Refiners:
VLO (Valero)
TSO (Tesoro)
d. Oil Sands Exposure
CNQ (Canadian Natural Resources)
e. Oil Services:
HAL (Halliburton)
SLB (Schlumberger)
f. Oil Shipping/Services
TDW (Tidewater)
g. Rigs and other oil services:
NOV (National Oilwell Varco)
RIG (Transocean)
h. Coal:
BTU (Peabody Energy)

5. Financial Services:
a. Brokers:
GS (Goldman Sachs)
LEH (Lehmann)
b. Banks:
JPM (JP Morgan)
IBN (Icici Bank) — Indian Bank
KB (Kookmin Bank) — Korean Bank
NBG (Natonal Bank of Greece) — Greek Bank
c. Exchanges:
NYX (New York Stock Exchange-Euronext)
CME (Chicago Mercantile Exchange)
d. Others:
LUK (Leucadia), a mini Berkshire Hathaway
e. Online Broker:
ETFC (E*Trade Financial)
f. HXM (Homex) — Mexican Homebuilder

6. Healthcare:
a. Big Pharma: (I don’t really like big pharma)
MRK (Merck)
PFE (Pfizer) — Value play.
B. Biotech:
GILD (Gilead) — Great pipeline
c. Medical Equipment:
MDT (Medtronic)
ISRG (Intuitive Surgical) — Robotic surgery
d. Healthcare Insurer:
AET (Aetna)
HUM (Humana)
MOH (Molina Healthcare)

7. Industrials
a. Aerospace/Defense:
BA (Boeing)
BEAV (BEA Aerospace)
TDG (Transdigm Group)
b. Congolomerate:
GE (General Electric) — Large cap to come
back
c. Infrastructure:
CAT (Caterpillar)
MDR (McDermott)
FWLT (Foster Wheeler)
d. CX (Cemex) — Mexican Cement company.

8. Technology:
a. AAPL (Apple)
b. GOOG (Google)
c. NVT (Navteq) — they make digital maps for GPS
d. SIRF (Sirf Technologies) — they make chips for
GPS
e. GRMN (Garmin) — They make GPS products
f. RIMM (Research in Motion) — Blackberry maker
g. GLW (Corning) — Optical and flat panel display
play.
H. FNSR (Finisar) — Optical equipment under $4
speculative play.
I. LVLT (Level 3 communications) — Speculative
under $6 optical equipment play.
J. CSCO (Cisco) — Networking equipment
k. AKAM (Akamai)
l. DOX (Amdocs) — Billing software company

9. Telecom:
a. AMX (America Movil) — Latin America/Mexican Telecom play. This is a great growth area at a good price
b. T (AT&T)
c. NIHD (NIHD Holdings) — Latin America Telecom
d. BRP (Brasil Telecom)
e. VIP (Vimpel) — Russian Telecom company

10. Utilities
a. SZE (Suez) — French Utility with growth

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