Even though gold is at its lowest value since 1980, analysts warn that it should not be used to predict the future performance of other hard assets.
On April 15th, 2013 gold dropped in value more than 9 per cent, resulting in the biggest one-day fall, in 33 years. Moreover, some analysts believe it could drop an additional $100 in price per ounce, in the near future. Needless to say, this has many gold investors worried and some are even rushing to sell-off their gold assets. One fundamental of investing is that all investments carry a certain measure of risk. And nowadays, it appears that gold is no exception to this rule.
For many years gold has been considered to be a good hard asset investment for the most part. Historically it has increased in value decade after decade, and some say is likely to continue that trend by the end of this decade. But for the immediate future, gold investors will likely have to hold onto their investments; until the price goes up again. How long will it be is anyone’s guess at this point, but many experts agree it is inevitable. Until such time, investors have to be patient and not panic and sell their gold assets, which could result in a further drop in value and no gold investor wants to contribute to the assets further decline.
Gold is just one of the many hard asset investing opportunities available in the market today. Hard assets, like precious metals and gemstones, have always been considered less risky than traditional options; like stocks, bonds and even the often recommended real estate investments. As a matter of fact, many investors favor them because they are not directly correlated with the stocks and bond markets and thus are not affected by inflation, in the same way that traditional investments are.
Hard assets are essentially the materials that are needed in the manufacturing of all the world’s consumer goods and transport requirements and have always been in strong demand to facilitate the steady growth of the global economy, decade after decade. This is a fundamental reason why these investments are appealing to investors. In most instances, investors know that their investment is in an asset that is in constant demand worldwide and is expected to continue that way for many years into the future, resulting in long-term investment success.
Much of investing is about speculating which direction the global economy will take. Yes, the price of gold is down at the moment, but many investors believe it will bounce-back again. Some believe it will make a comeback in an even bigger way. In fact, there are a few market analysts that have predicted the global economy will double in size by the year 2020 and in turn, the demand hard assets (like gold) will rise to facilitate the massive growth. As you can imagine, these positive forecasts mean good news for anyone who has made an investment in hard assets.
Investors can replace hope with confidence when they perform thorough investment research before investing, to determine their best investment decision.
When it comes time to make a commitment to an investment, every investment-seeker hopes they will make the investing decisions that will eventually lead them to prosperity and profits.
Regrettably, the amount of hope an investor has (when it comes to investing at least) does nothing to contributing to the success (or failure) of an investment offering. The only hope for an investment-seeker’s success, is to carefully conduct thorough market research and make a final decision about investing or not, based upon established facts and figures.
The amount of information that an investor will need to collect, depends on the number of questions they need answered. It can be expected that an apprehensive investor’s search to discover important details and learn the truth about investments, will take them on an arduous search through the investment community.
Eliminate hope, and replace it with confidence.
By interacting and corresponding with other investors, investment-seekers can uncover credible data that definitively establishes what is fact. Collecting and processing this information, eventually leads to an educated and confident decision to invest; or not. The investors goal throughout this time consuming task is to eliminate hope, and replace it with confidence. After learning the truth about investments, investment-seekers can make an educated choice they know with confidence, will earn them a steady and profitable investment return.
There is not an investor out there that wants to go through every single day worrying about whether they made the right investment decision, or not. Be that what it may, unless investors have an investment secret they will have to spend hours researching their investment offerings, one investment opportunity at a time, to build their confidence. Without the belief in themselves that they made the best choice about investing, uncertainty will lead to grief and grief will lead to daily misery.
The investor’s quest for dependable answers begins with hope and ends in a confident decision, that is supported by endless research, an educated argument and sizable profits to boast about.
Time and again, alternative investments have demonstrated to investors that they can out-perform stock market investments, by a growing profit margin.
When it comes to investing in the stock market, it is widely recommended by leading investment experts to “buy low and sell high.” Realistically this is (of course) the best case scenario, and hardly a fool-proof plan for investing. Let’s stop for a moment and consider how many investors did not get the opportunity to sell their plummeting stocks, when the global financial crisis began to unfold in 2008. At that time, many unsuspecting investors suffered significant losses, not just in terms of their assets but to their confidence and trust in the established traditional investment model; as well. Because of this, many investment-seekers regard stocks and bonds as a very risky investment strategy, and are moving away from this traditional investment offering.
There was a time when the traditional investing methods were seen as the only investment option available to private investors. Nowadays, thanks to the abundance of profitable alternative investment options now available in the marketplace, that fact is changing. Over the course of the last five years (since 2008), alternative investment offerings have been emerging and demonstrating to the investment community, that they can consistently out-perform risky stock market investments by a very attractive profit margin; that (to the surprise of most) continues to widen. As investment alternatives have become increasingly more popular with the international investment community, the traditional options like the stock market have been losing long-time investors, to offerings with lower investing risk and more favorable returns.
In most instances, those investors who have invested in established alternative investments are now enjoying better-than average returns, both consistently and constantly. Because of this, most have absolutely no intention of selling-off their investment, at any time in the near future. In fact, many investors have come to realize the long-term value in keeping their alternative holdings. It is what happy investors are more commonly referring to as, “receiving a great return on investment.” With that being said, the mass exodus out of traditional investments is underway and discouraged stock market investors are becoming more and more inclined to sell-off their risky stock investments, regardless of whether it is the “best time” to do so or not.
Whether it be the truth about an investment’s projections, forecasts or past market performance, investors need facts they can rely upon, before investing.
Every investor’s journey toward an investment decision begins with a search for the true facts. Whether it be the truth about an investment’s long-term projections, profit forecasts or past market performance, the investment community is demanding credible facts they can rely upon, when it comes time to make the final decision to invest in an opportunity; or not. Without a doubt, every investor certainly recognizes the importance of collecting and analyzing corporate figures and forecast, as well as learning the truth about investments, before committing to an investment offering. It goes without saying that if the facts at the foundation of a body of research are not reliable, then the decision made about making the investment cannot be reliable either.
Although questions can sometimes add to an investor’s confusion and apprehensions, investment-seekers must realize that every answer they arrive at is another step closer to distinguishing fact from fiction. The more questions an investment-seeker is able to ask, the more answers they can expect to receive and in turn, the less doubt there will be. When seeking the truth about investing, investors must be diligent in collecting establish facts that prove the credibility of an investment offering, while at the same time eliminating any skepticism that is preventing an investor from building the confidence they need; to make a financial commitment.
Make no mistake, the search for the truth about investments should be exhaustive, comprehensive and thorough. As the saying goes, leave no stone unturned. Serious investors should expect that it will take them several weeks or even months to collect the detailed information from reliable sources, especially if they are determined to uncover the complete truth and reach an educated decision about investing. Once the in-depth research is completed, investment seekers must be cynical with everything that is presented and carefully scrutinize every piece of information that causes them any degree of concern. Understand that this is necessary if they hope to enjoy a great investing experience, now and in the future.
At the foundation of every decision to invest, an investor should find the truth about investing, supported by undeniable fact. It is the satisfaction derived from addressing any shadow of doubt, that will build an investor’s confidence, ease their apprehensions about investing and give them a good reason to invest. Without establishing the facts for themselves, an investor is left to rely upon unsubstantiated information that could be intended to mislead them and will more than likely result in a poor investment decision and possible losses.
Investors recognize that there are investing alternatives that do not include placing money in banks. This is likely to cause banks to experience withdrawals.
When the Great Depression unfolded in the 1930’s, many people lost their trust in the banking sector and stock markets and instead chose to store their money in a mattress or any other place they felt it was safe. For most discouraged investors, it seemed like their only viable option at the time. It took many years before the investment community began to trust the banking system and stock markets. Nowadays the average citizen, particularly in Europe and the United States, has again lost their trust in the banks and the stock markets; but at least now they have viable investment alternatives to turn to.
What has occurred in Cyprus in the past, with the banks seizing innocent depositor’s money, amounts to nothing less than stealing from the poor to give to the rich. While they may have succeeded this time, investors expect that there will be serious consequences in the future, as a result. Leaders in the European Union have already widely acknowledged that this “formula” could be instituted in other weak EU countries, that demonstrate they are unable to manage their own financial affairs. In other words, the average citizen will be expected to help pay the bailout bill, even if they cannot afford to do so. This precedent set in Cyprus will no doubt cripple the country’s economy and cause serious hardship in people’s lives.
Although there are restrictions put in place for depositors on how much they can take out daily, the banks should realize that these traditional investments seem risky and it will be a long time before many people in Cyprus are going to put their money back into the banks for fear of having it confiscated. This policy by the EU leaders will result in many European citizens from other countries pulling out their money from the banks and seek other options where they feel their money will not be “stolen” from them. The European banks will ultimately feel the biggest losses, when this becomes a stark reality in the coming months and years, and rightfully so. Why should they profit from their own mistakes? In the business world if you make mistakes that bankrupt your company why would investors be interested in supporting such massive mismanagement? They would simply look to more profitable and safer opportunities.
Nowadays, there are many more profitable alternatives that investors can invest in, instead of putting their money into untrustworthy banks or stocks. In fact, many of the options that have emerged have proven to deliver consistent returns even during the last five years, when the markets were exposed to economic and political turmoil. It is expected that in Europe, many investors will abandon the banks and the stock markets in favor of investing in alternative investments, that will protect their money and grow it steadily; without any fear of having it lost or confiscated.