Superior gold Group – Reasons Why Not To Invest in Gold

Posted on 23rd August 2010 in Investment

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 0 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 0-0 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.

 

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Superior Gold Group – Top 6 Reasons Why Gold Investments are Worthwhile in this Economy

Posted on 7th August 2010 in Investment

Superior Gold Group – Top 6 Reasons Why Gold Investments are Worthwhile in this Economy

Let’s face it. The economy is failing. Yes, you may point out the fact that there have been glimpses and flashes of the economy recovering. It still is not an assurance it actually will recover. The World’s Economy is still licking it’s wounds, it’s only been a few months since the U.S came out of the recession, and it being one of the most powerful nation’s in the world really takes a toll on the World’s Economy. It will take years, or even decades for the World’s Economy to recover. Plus, add in the fact that the economy and market is as unstable and volatile as Francium, which by the way is the most unstable of all the first 101 chemical elements, and you’ve got a potentially deadly mix that will eventually lead to disastrous results. With all that said, these 6 reasons should be enough to sway you into thinking about diversifying your portfolio by investing in Gold.

The main reason why you should even think about investing in gold is the fact that the U.S economy is weakening. What does that have in connection to Gold Investments? The metal industry, which includes gold, silver and other precious metals, is usually denominated in dollars, which by the way is cheaper to buy in other currencies. The price of gold is usually relative to that of the Dollar, which means that if Dollar loses value then Gold gains it. However, there is really not much statistical proof or evidence that Gold’s value will fall if the value of Dollar increases.
The value of gold is universal. Yes, dollar is generally accepted on a worldwide scale, but its value differs on a nation to nation basis. Meanwhile, gold’s value is pretty much the same anywhere, whether you’re in Macau, in the Philippines, or in the U.S.
Psychologically, Gold is appealing to the general public. Although, experts have yet to find a reason why this is so, it would be safe to say that Gold will often appear to the general public as something of a luxurious product. Not only is it psychological, but gold has been one of the most expensive products or commodities in the market for decades, and it has stayed that way for a long time. The only time its value depreciated is when the world was under a “gold standard”.
Demand. The demand for Gold nowadays is more than ever. With the emergence of China and India, in which experienced a dramatic increase in their demand for gold (50% for India), it would be safe to say that you shouldn’t worry too much about the price of Gold. Speaking of increases, there is enough statistical evidence or proof that shows that gold has experienced a steady increase with its value for the past six years, dating back to 2004.

With that said, there is no better time to start diversifying your portfolio and investing in Gold than right now. Yes, you heard me right, right now. Experts have calculated that gold’s value will continue to increase, and will likely hit ,700 per ounce in a span of 6 years. That’s a huge increase, considering that it sells for only about a thousand dollars per ounce nowadays.

 

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7 Reasons to Use a Real Estate Agent

Posted on 22nd October 2009 in Real Estate

Some people choose to use a real estate agent and some people choose to go it alone. One thing I have noticed over the years is that a number of seasoned investors looking in a new city will seek out a good agent while novice investors will frequently go it alone. I have even had a number of successful real estate agents seek out my help when they are moving to our city. Why do some of these seasoned investors choose to work with an agent? Below is a list of 7 benefits of using an agent.

1. Understand potential restrictions of the property. I recently heard a story from a friend at the city development office in Austin Texas. A couple had saved up for their retirement. They wanted to retire and live out in the hill country. They went to the foreclosure auctions. At the auction they purchased a lot for 500,000. It had great views and they were going to build their dream house on it. They had researched the lot before the auction and found it was zoned SFR which means a single family residence can be built on it. After purchasing the lot they started plans to build their retirement house. At this time they discovered the lot was in the 25 year floodplain. My friend at the city development office explained that the lot could not be built on and was basically worthless.

2. Know about new developments that might affect a properties value. A good realtor will know of proposed new developments that might affect different properties in which a buyer is interested. Whether these developments are positive or negative can be valuable information when weighing different housing options.

3. Find potential problems with a property. It is always a good idea to have a home inspector look at a potential house. However, a Realtor is a good first line of defense to see if a house has inherent problems. A Realtor that can know about common problems, such as foundation or electrical, that affect a particular neighborhood.

4. Understand contracts specifics. Whenever you buy or sell a house you are entering into a large personal transaction. It helps to have someone on your side that deals with these types of transactions on a daily basis. A Realtor can help you understand contracts and can explain what is typical for your area. The most common pitfall into which I see unrepresented buyers fall is to become involved in an atypical contract that is not to their benefit. For instance a seller will sign an offer that has an option period that is 4 times longer than what is typical. A buyer might put in offers on multiple properties with long option periods. The buyer will wait and see if the market appreciates. If the market has appreciated the buyer buys the house at now and undervalued price. If the market has gone down the buyer walks away.

5. Misperception of a benefit of going it alone. Buyers frequently think that by not using a buyers agent they will get a better deal from the seller. In most situation the listing agent asks for 6 percent from the seller. If a buyer comes with an agent the listing agent splits the 6 percent with the buyers agent. If an unrepresented buyer comes the listing agent keeps the whole 6 percent. On the selling side, For Sale By Owners (FSBO) often think they are saving alot of money by avoiding a listing agent. Nationally, FSBO homes sell for 14 percent less than agent listed homes in the same neighborhoods. In addition alot of FSBO’s still end up having a buyers agents involved. There is also money spent on advertising. Since an agent has experience marketing homes the agent often can spend money more effectively on advertising. Agents often know which advertising sources produce the most potential buyers.

6. Save time when looking for listings. Looking for listings without an agent can take up large chunks of time. When looking with an agent you can see several homes in a few hours. When going it alone you have to call the listing agent for each house and wait at the house for the agent to arrive and open up the house. In addition agents often know houses which are not listed or may have already identified potential problems with a particular house of interest.

7. Insure Security. When a home is listed with a broker, agents coming to the house have to usually log in. This allows the listing agent to keep a record of every party coming into the house. Since their business is on the line, agents are more likely to protect the house from damage or theft. For a variety of reasons, it is generally not a good idea to have random people you do not know come into your house. Often sellers simply have a phone number, but that phone could be their house, a friend’s house, a pay phone, or even a stolen phone.

Searching for a home can be stressful and difficult but it can also be fun. Whether you choose to look for a home on your own or with a Realtor its a good idea to be a extremely careful when you seek out your dream home.

Ki Gray is a realtor with the Austin Texas Real Estate in central Texas. Their website escapesomewhere has a free Austin homes search. They also offer a custom Real Estate Calculator.

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