Your Questions About Tips For Investing In Precious Metals

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Daniel asks…

How to quadruple my money in 10 days?

hey everyone. i know this sounds different? i guess haha, but i was wondering what kind of options i have; in terms of wanting to quadruple my $250 in 10 days or less.

advice on investing,what sorts of stocks. commodities,futures,precious metals..etc
im not a pro,iv done a bit of learning. tips and advice welcome.thanks

looking for serious input, thanks for your help

Justin answers:

Your best odds would be betting odd/even or red/black on a roulette wheel four times and let it all ride each time.

You will either make it if you are lucky in your choices or the misery will end quickly…it won’t take 10 days to do it either….

I am serious….there is no guaranteed stock investment to give you that kind of return in 10 days that has less risk.

Paul asks…

Does real estate succum to inflation?

Lets say there is a high inflation, does that mean then that real estate prices would increase also?

If so:

How do you overcome inflation personally without investing in precious metals such as gold, silver, platinum?

Justin answers:

Over the long term on average the price of residential housing tracks the inflation rate for resales of homes but because newer homes are bigger and have more amenities the average prices of home have increased. Http://visualizingeconomics.com/2011/03/31/increase-in-housing-quality-and-its-effect-on-home-values-1940-2010/ There are also variation due to neighborhood changes (gentrification in cities or deterioration in older suburbs) and as well as speculative booms and bust in local markets. Real estate is very illiquid and almost imposable to sell during periods of high inflation because mortgage rates are also very high, However if you get a mortgage before the inflation occurs at a low interest rate, and hold it during the inflationary period, you can make a lot of money on your original investment because you are highly leveraged.

The US government sell inflation protected bond (TIPS) , the principle increase with the cpi, but the interest rate is very low and increases in the principle is taxable as income..

Chris asks…

What did people invest there money in during the depression?

You know the time when the country had no money.

Justin answers:

Precious metals and gems, if people could afford to. The problem was the stock market running uncontrolled on how much an investor could borrow to buy stock, a purchase on “margin” in which the stock was used as collateral for the loan plus a small amount of cash to buy it. Stocks were artificially inflated and bought on margin at outrageous prices, often for a few real pennies on the inflated dollar value. When the stocks dropped even a little, the broker called in the margin to avoid losses and forced a sale at current price to recover their money. The problem is they had to sell at a relatively large loss, which meant the broker was out the difference. Enough of these calls started flowing to cause massive bankruptcies because the broker could not cover the losses, which eventually resulted in deflation of the currency, which meant each dollar bought less and less in the marketplace, resulting in a downward spiral. People could not pay back loans from banks, so banks folded, resulting in an increase in the downard spiral when people lost their bank savings. The only currency which retained any value was directly tied to precious metals. At the time our currency was backed by silver and gold in the treasury, which eventually stopped the downward spiral, but it took years to stabalize. My parents told me of all this and since this is a second hand version, I may very well have the details wrong. They could not trust the banks since so many folded, so they learned to keep everything in hard currency under the mattress. My parents lost almost all of the money they had in the bank. When banks started to fold, people would go to their bank and withdraw their money. The banks did not have the cash money to pay out all that they owed for deposits since they had invested that cash in loans to people for mortgages and the like. The term was “a run on the bank” when people went to withdraw funds enmass. It was at a point that the content of silver coins as melted silver was worth more than the face value of the coins for a short period. My parents had most of their wealth (what little they had left after the bank folded) tied up in jewelry and property and scrimped and saved like crazy to keep up the mortgage on the house. Once the Government regulated the stock market and banks, things started a slow recovery. This situation is not likely to happen again because of the current regulations regarding trading of stocks and cash reserves required for banks. Apparently, this all started with uncontrolled speculation in the stock market and had a domino effect once it tipped, even a little. It was about this time that “plug” nickels made an appearance. People would cast coins made of lead and dipped in mercury to mack them shiny. There were two ways to tell a counterfeit coin, drop it and bite it. A counterfeit was soft, so biting would leave a mark. The other way was to drop the coin on a thard surface and listen to the sound. A real struck coin has a ring which a countefeit will have a dull thunk. There was a third way, weight, but it was hard to tell without a balance scale to actually measure the weight of the coin against a true known good coin.

Richard asks…

Can someone please explain the stock market to me?

I understand the stock market is a complicated system but can someone give me a some what detailed explanation of how it works, how to buy and sell stock, and some tips to be successful in the business?

Justin answers:

So you say you want to learn how to invest in the stock market.

Education is the key ingredient. Read all you can get your hands on about investing and the stock market. Knowledge is power, so become an educated invest before making your first buy.

You could start here: www.investopedia.com

I recommend a starter book called “The only investment guide you’ll ever need” by Andrew Tobias http://en.wikipedia.org/wiki/The_Only_Investment_Guide_You%27ll_Ever_Need

If you want to become a member, this is another good Organization to learn from: www.betterinvesting.org

Your next task is to figure out 4 things.

The amount of risk you’re willing to take?
No risk, Low risk, Medium risk
You get the picture.

What kind of investor do you want to be?
Saver, Speculator or Specialist

How long to want to invest?
Day trader, Short term, Long term or Life long

What do you want to invest in?
Stocks, Bonds, Coins, Precious metals, Money Market, Real Estate,Etc.

There are different styles of investing so learn them all and then pick the one that suits your risk tolerance and tastes.

I chose to be a Dividend Investor. I do reinvest my dividends and that buys me more stock. Since I’m in it for a life time I do not let the roller coaster ride of the stock market influence my decision to sell. I have set up an excel spread sheet of stocks that I have considered to buy and loaded them on to a portfolio on yahoo finance. When I copy and paste the current prices into spread sheet my excel spread sheet tell me when to buy, hold, or sell. It does this by the criteria that I set up in the formulas I created in my spread sheet. I research all the companies before they go my spread sheet.

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