subject: Superior gold Group - Reasons Why Not To Invest in Gold [print this page] Superior gold Group - Reasons Why Not To Invest in Gold
With all the hype regarding gold and investments, it would be hard to see why you should NOT invest in them. They are, as they say, practically immune to inflation, have charts and statistics to back up the claims that their value is increasing and the list goes on and on. But basically, is Gold all that it is said to be? Millions and millions of investors are opting to invest majority of their stocks or diversifying most of their portfolio through gold investments and gold companies. They believe that this will protect their money from inflation, and still, pay dividends in a few years to come. Yes, gold has been successful for the last couple of years or even a decade, but, have you really thought any reasons why NOT to invest in gold?
Well, here are a few reasons why, you should NOT do so:
First. Remember, gold is a speculative investment. Back in 1980, gold would have sold in the market for $800 an ounce. Pretty modest. Right? Well, not quite so. If you happen to have the time, look at any proven charts of gold's progress during the past three decades. It will surely surprise you. Gold, from 1980 until only as recent as 2003, sold only for $400-$800 an ounce, which means that you're investment during the 1980s would take at least 20 years to yield some profit, whereas you could've gained at least a decent amount of profit if you had invested it in real estate and stocks.
Yes, I do keep in mind that all kinds of investments are somewhat speculative. However, real estate, stocks, high-tech or any other kind of investments, except for gold and precious metal investments are easier to predict. That's because they have a proven formula, and that's the law of supply-and-demand, whereas there has been no such definite proof for a winning formula to predict gold's movement in the market. Plus, add in the fact that gold will only give you profit when you sell them, whereas stocks and real estate will pay dividends and rents on a regular basis.
Given that you invested in 2003, you would clearly rake in some profit by 2004, 2005 and even up until now. However, what happens if ever you invest in it again and it turns out to be one huge flop? Remember, people can only speculate on what is the next "in" thing in the market. For the past decades, real estate, stocks and investments in the field of technology were speculated to yield profit. What happened? Due to the bandwagon effect, people never really raked in profit due to that, and some even lost their money due to their investments. Remember, do not always but into what these speculators say. Do your own share of research about the market, its movement and the economy.
Yes. I do know that I'm not an economist, and I can't even point out with even 50% accuracy what will happen to the market. I, however, have the power of research with me. Remember, gold isn't the only investment that will do well during times of inflation. Most of the time, even stocks and real estate provide assurance during those tough stretches. For example, ever since the U.S government went on to spend lots of cash for their plans to save the economy and for other expenditures, stock prices as well as gold have increased. Paying attention to the market, and what happens to the market, will help you manage your investments carefully.
