Create Your own Gold Standard
Inspired By CEO ·
We indeed live in turbulent economic times. The national debt in the United States is over 16 trillion dollars and growing, and much of Europe is in recession. Both the Federal Reserve and the European Central Bank are flooding their economies with fiat money to stimulate battered economies. As a result, many are calling for a return to the gold standard which would force governments to stop printing paper money with impunity. It is, however, highly unlikely that the United States will return to anything resembling a gold standard anytime soon.
According to dailyfinace.com, returning to the gold standard is a highly controversial idea, and many economists are indeed skeptical it would solve our current problems. While we will not return to a gold standard, you should back your own paper investments with gold and silver for financial security, because relying on flat currencies is not the answer to financial stability.
It is important to understand the concept of what a flat currency is, before investing in gold. Fiat money allows the government to exert control over the economy. When prices drop too fast, like when the real estate market tanked the government pumped more money into the economy to inflate and therefore steady prices within the market. Read more
4 Reasons Why an Investor Should Choose to Invest In Rare Coins from MonacoRareCoinscom
Inspired By CEO ·
It is a well-known fact that rare coins offer a top yielding investment, steady appreciation rate, and liquidity. These are three of the reasons why thousands of investors have chosen to employ the services of MonacoRareCoins.com for the acquisition of rare coins and precious metals. However, there are a number of different reasons why an investor should choose to invest in rare coins. Here are four often-overlooked reasons why an individual should consider investing in rare coins:
- It offers privacy.
Investing in rare coins is one of the few methods of investment that provides an individual with anonymity. Due to their liquidity and the ease with which they can be moved, it is a simple process for a purchaser to take physical possession of their rare coins. With this type of investment, the rest of the world does not need to know about what the investor is purchasing. Read more
Monex Explains 8 Things Most People Do Not Know About Gold and ETFs
Inspired By CEO ·
Exchange traded funds or ETFs operate in a very similar way to stocks. They are investment funds that are traded on the stock market. ETFs are often valued forms of investment because they offer tax efficiency, low costs and a number of stock-like features. Gold ETFs are gaining in popularity in today’s troubled economy. While current gold prices have dropped below $1700 per ounce, gold ETFs are projected to gain in 2012. With the fiscal cliff and other worldwide economic instability looming, many people are thinking of hedging their portfolios with gold, especially ETFs. This may not be the best choice for an investor’s portfolio however. There are other factors that have helped to support gold prices in the international market in the last few years. Here are a few of them:
- Gold is an emerging market asset. India and the Greater China region (which includes China, Taiwan and Hong Kong) have shown an increased consumer demand for gold. India’s consumer demand was about 223 tons in 2012 and the Great China region’s 2012 gold demand was around 185 tons.
A Great Book for People Who Think Investing Is Difficult
Inspired By CEO ·
James P. O’ Shaughnessy wrote the perfect book for people who think that investing has to the risky, complex, and dangerous. It is also the perfect book for those who want to think that they can outsmart the market. This book has the academic and numerical proof that a passive or mechanical system of investing will in most cases beat a human system of investing.. . even professional investors such as fund managers. This book also explains why nine out of ten investors do not make money.
O’ Shaughnessy’s best-selling book is titled “What Works On Wall Street: A Guide to the Best Performing Investment Strategies of All Time”. O’ Shaughnessy distinguishes between two basic types of decision-making:
- The clinical or intuitive method. This method relies on knowledge, experience, and common sense.
- The quantitative or actuarial method. This method relies solely on proven relationships based on large samples of data.
O’ Shaughnessy found that most investors prefer the intuitive method of investment decision-making. In most instances, the investor who used the intuitive method was wrong or beaten by the nearly mechanical method. He quotes David Faust, author of The Limits of Scientific Reasoning, who writes, “Human judgment is far more limited than we think.” Read more
Investing is Not What Most People Think
Inspired By CEO ·
Many people think investing is this exciting process where there is a lot of drama. Many people think investing involves a lot of risk, luck, timing, and hot tips. Some realize they know little about this mysterious subject of investing, so they entrust their faith and money to someone they hope knows more than they do.
Many other so-called investors want to prove they know more than other people. . . so they invest, hoping to prove that they can outsmart the market. But while many people think this is investing, it is not what investing actually mean. Investment actually is a plan, often a dull, boring, and almost mechanical process of getting rich.
Investing is simply a plan, made up of formulas and strategies, a system for getting rich. . . almost guaranteed. Unless, of course, you want it to be that way or you think that is the way investing has to be, so there will be risky for it. But in the really world, investing is as simple and boring as following a recipe to bake bread. Read more
Why Investing Is Confusing??
Inspired By CEO ·
First of all, investing means different things to different people. That is why it seems so confusing? What most people call investing is not really investing? People are all talking about different things yet they often think they are talking about the same thing.
No One Is an Expert at Everything
Investing means different things to different people. There is no one person who can possibly be an expert at the entire subject. There are many different investment products and many different investment procedures.
Everyone Has a Bias
A person who is good at stocks will say, “Stocks are your best investment.” A person who loves real estate will say, “Real estate is the basis of all wealth.” Someone who hates gold will say, “Gold is an obsolete commodity.”
Then you add procedure bias and you really become confused. Some people say ‘Diversify. Don’t put all your eggs in one basket,” and still others such as Warren Buffet, America’s greatest investor, says, “Don’t diversify. Put all your eggs in one basket and watch that basket closely.”
All of this personal bias from so-called experts adds to the confusion that shrouds the subject of investing. Read more
Rules of Investment Number Two
Inspired By CEO ·
Investment basic rule number two is to convert earned income into portfolio income or passive income as efficiently as possible. And that, in a nutshell, is all an investor is supposed to do. That is about as basic as it can get.
Risks are always part of investing, as it is with life. People that are too negative and avoid risking themselves out will be losing most opportunities because of their negativity and fear of risk.
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