Rare gold coins against stocks. Five Tips on Why Gold Coins Bet Better in Late 2007

If the look and feel had anything to do with it, the rare gold coins would win the stock every time. They are charming, beautiful, have a good reputation և because they have been around for a long time, represent an intriguing part of history.

But there are other reasons, timely reasons, to add more gold to your portfolio today than stocks … or making such a claim could be a dangerous approach to the curse of traditional stock investors. However, ignore the available tips at your own risk. For example …

Tip # 1: Call options indicate higher gold. This analysis is from Prieur du Plessis և Adrian Douglas. In a word, these two men noticed that in 2007 The gold option contracts signed in December were really significant, currently amounting to about 122,000. Moreover, they exceeded 2 to 1.

Due to this “positive growth” of gold, “du Plessis” and “Douglas” believe that gold is on the verge of a big jump in prices. This is not the first time Douglas has believed this. 2005 In November, he forecast a rise in gold prices from $ 460, based on a similar accumulation of gold buying options. Two months later, gold was $ 100 higher. Next …

Tip # 2. Demand for gold is still rising. The supply of gold is still decreasing. The situation here has only worsened. According to a recent report by the World Gold Council, global gold demand is 30% higher than a year ago, while supply continues to the south. The world’s largest gold producer, South Africa, has reached a 84-year low despite rising gold prices. And the world’s leading gold producers have seen their output shrink by almost 20% since 2001.

Needless to say, an increase in demand ումը a decrease in supply leads to higher prices.

Tip # 3. “Triple threat” from the housing dilemma. Harvard economist Martin Feldstein has warned that we face a threefold threat of housing collapse. According to Bloomberg’s September 2 report on Jackson Hall’s speech, “Feldstein outlined the ‘triple threat’ from apartments. – Major mortgage losses և Less home equity loans և Refinancing mortgages, which leads to a reduction in consumer spending.

Needless to say, the overall impact will be dire. “The economy can experience a very serious downturn,” he added. More reason to diversify into shiny items.

Tip # 4. America follows in the footsteps of the Roman Empire – Commander-in-Chief David Walker. Yes. You know, you’re in trouble when the guy in charge of government accountability finds “striking similarities” between the United States and the “Roman Empire.” The end of the Roman Empire. In his comments, the United States suffers from “a decline in domestic moral values, political politeness, overconfidence in foreign countries, an oversized army, and fiscal irresponsibility by the central government.” He is so serious that he even refused to sign the “books” of the government. See you again.

How does that relate to gold: stocks? When high-ranking members of our own government immediately come out and warn us of an impending “economic tsunami”, it is time to take refuge in gold.

Tip # 5. Inflation, inflation և more inflation. Despite government statistics around the world, we all know that inflation is disappearing. We know that every time we fill our tanks. And somewhere in our minds we know that rising energy prices must be bad for the economy, that it affects everyone’s anyone who sells something. No wonder that intuition is ingrained in reality. According to the Federal Reserve Bank of Dallas, “Nine out of ten recessions after World War II were preceded by a sharp rise in oil prices.”

As the Fed rushes to delay the recession by cutting interest rates, we also know that somewhere in our psychology that the dollar will only weaken, it may be dangerous because of its current historical weakness with each of these cuts. And the main line of this whole change is inflation. We will need more dollars to buy what yesterday’s dollars bought.

You have no doubt heard the saying. “In 1911, an ounce of gold could buy a very nice suit. “It still can today.” In other words, gold maintains inflation. He did that in 1911. It still does, almost a hundred years later. Which makes gold the preferred weapon in the fight against inflation.

But why stay protected by gold?

In 1995, Dr. Raymond Lombra, a Penn State economist, conducted a study he presented to Congress. This 40-page report “proved” that rare coins, including rare gold coins, were among the highest assets (including stocks) in the last 25 years. He said that “rare coins predominate in the gold bullion as a diversifying asset.” These “monetary coins” do this by reducing volatility while providing improved returns.

Lombra’s most recent study in 2003 showed approximately the same situation. In 1979-2003, rare coins, like rare gold, earned the highest average annual returns, surpassing the gold bar as an investment հ inflation hedge.

But whether you prefer a more aggressive position with rare gold coins than stocks or just want a proven financial haven, the time may be right for gold. And that can be an understatement.