Posted on 05/20/2011 10:34:24 AM PDT by republicanbred
Okay, my 18 year old daughter has $5,000 dollars sitting in investments and I would like to cash out and invest 1/2 in gold and 1/2 in something else secure for when the dollar collapses. We already have food storage enough so no need to spend it on that. Any ideas on what is best for an 18 year old would be appreciated!
It's like buying a house during the real estate bubble and feeling “good” about over spending. I personally wouldn't buy gold now because of that.
Equities have the best history of course. Since she is young they are likely to be her best bet. Since you don’t believe in the US economy or the American people, you will want to have her diversify internationally.
Does she have any intension of buying a house anytime soon or does she own a house now? If so, that makes gold a bit redundant in her portfolio.
Excellent suggestion.
Silever is good too. So are stamps. With stamps you have to know what you are doing. There are some great collections that command allot of money and it is all quietly handled ... in cash with other collectors ... .
Well, after looking at all these suggestions I think your choice is obvious.
Silver is good too. So are stamps. With stamps you have to know what you are doing as well as with art. There are some great collections and art that command allot of money and it is all quietly handled ... in cash with other collectors ... .
Silver is good too. So are stamps. With stamps you have to know what you are doing as well as with art. There are some great collections and art that command allot of money and it is all quietly handled ... in cash with other collectors ... .
Guns, ammo, food, water
Supporting candidates that want to control the size of government
No investmensts are going to help you.
Guns, ammo, food, water
Supporting candidates that want to control the size of government
No investmensts are going to help you.
Guns, ammo, food, water
Supporting candidates that want to control the size of government
No investmensts are going to help you.
When checking out historical comparisons, it’s always more elucidating to use the CPI converter located at:
http://www.bls.gov/data/inflation_calculator.htm
It shows the 1980 peak of gold at $850 adjusted for the subsequent devaluation of the dollar would be $2,320 in today’s terms
Just food for thought.....
Gold is fine but bow is not the time to buy it.
It’s like buying a house during the real estate bubble and feeling “good” about over spending. I personally wouldn’t buy gold now because of that.
Let me second nmh on this too. A international stock fund might be the best bet given your views. They earn returns unlike gold and real estate and they benefit from any decline of the dollar.
Gold has gone up 500% over the last 20 years. According to my gorrilla math, that comes to about 9% per year. Of course that's somewhat misleading since all of that return has been in the last 8 years, when gold has been steadily increasing with an average of more like 25% per year. So the questions is, will the next 10 years be more like the 1990s, the last 10 years, or will the dollar be devalued at a much faster rate than ever?
I pick door number three.
So, a given volume of the Gold produced is expendable, which explains why it has not dropped catastrophically lately.
The future for Gold is looking very solid.
Diamonds are a horrible investment. The price is totally subjective based on intangables like color and clarity. The markup from wholesale to retail is huge, meaning if you try to sell, no jewler will give you anything close to what you paid, so you will have to find a private buyer, and the price will go down in hard times. Finally, DuBeers and other producers have huge reserves and could flood the market at any time. The only reason that the price fo diamonds is high is that litterally tons of them are held back. Precious metals are not manipulated in that way, and the markup from wholesale to retail is a few percent.
Of course the question is about the future and we know that:
1. If there is big inflation, real estate and metals will win.
2. If there is deflation, cash and cash assets will win.
3. If the economy grows, equities will win.
4. If the economy is flat, bond will do best though with nominal interest rates so low but not starting from a position of low interest rates.
5. If the economy is flat and the dollars is falling in value, then an international portfolio of equities will win.
its a vicious circle....
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