- 12-22-2008, 06:42 PM
Hey, just wondering who out there invests and if you have any good strategies for the current economic "downturn".
The strategy I'm considering is:
Buying a lot of GLD (NYSE gold index). (40%)
Buying some NYSE Euro or Yen index. (25%)
Buying gold and mineral exploration companies. (10%)
Keeping a minimal S&P exposure (25%ish)
Keeping minimal exposure in dollars, due to an upcoming inflationary explosion. Should I put my tinfoil hat on or am I playing it safe?
- 12-22-2008, 07:00 PM
The Gold investment looks sound to me.
In times of recession, gold has always been seen as a safe haven.
What sort of time frame is your proposed strategy?
12-22-2008, 07:02 PM
12-22-2008, 07:44 PM
12-22-2008, 07:45 PM
12-22-2008, 07:51 PM
12-22-2008, 07:55 PM
12-22-2008, 08:12 PM
Often gold producers hedge, or forward sell part or all of their production at an agreed price to minimise risk not only to future revenue, but also to hostile takeover bids.
I the current economic climate, one would want full exposure to a rising gold price, and obviously under 'normal conditions' the market would place a premium on the company value.
Currently this premium is not recognised due to economic uncertainty created by the sub-prime collapse and general panic mentality by the global investment community.
A google search will reveal more... as would advice from an investment professional (which I am not)
12-22-2008, 10:14 PM
12-22-2008, 10:23 PM
12-22-2008, 10:36 PM
12-22-2008, 10:38 PM
12-22-2008, 10:40 PM
12-22-2008, 10:57 PM
The number and scope of platinum's industrial uses have skyrocketed during this century to include neurosurgical and dental apparatus, drugs for cancer treatment, computer and automotive equipment. Indeed, one of every five goods manufactured either contains or is produced using platinum. One of its most essential uses is in auto catalytic converters. Within autocatalysts, platinum converts harmful emissions into carbon dioxide and water. Nearly one third of newly mined platinum is used in this fashion. Due to its function in the automotive industry, it has been dubbed "the environmental metal."
While new uses for platinum are being discovered almost daily, its supply is extremely restricted. Remarkable difficulties exist in its mining and production, with between 5 and 6 million ounces of new platinum reaching the world market each year; that figure is less than 5% of gold production. It is estimated that all of the platinum ever mined would fill a room measuring less than twenty-five feet on a side. Refining the metal poses its own problems; platinum occurs naturally in combination with other metals, necessitating an intricate process of extraction that takes about six months.
Taken from Platinum - History and Investment
In the past Platinum doesnt out perform gold in tough economic times, I think you could snap up some for quite cheap. The world is cracking down on polluters and i think its a nice way to diversify.
Id invest in gold bouillion or bars and if crap hits the fan you can ensure your saftey with this global standard of monetary exchange.
12-22-2008, 11:06 PM
- the world gold council
- CRU mineral economics
- London Metal Exchange
will give you a good start.
'Mineral Economics' is another good search - of course, throw 'China' or 'BRIC' , which is an acroymn for Brazil-Russia-India-China - key emerging economies that will drive future global economic growth
12-22-2008, 11:09 PM
12-22-2008, 11:10 PM
there is a tonne of info to wade through - I've studied post-grad level Mineral Economics, and work in the Resource and Mining Sector and sometimes feel I've only scraped the surface.
All the analysts are have been proved wrong with recent events - I don't think anyone has the correct answer.
It's still worth while seeking professional advice, but always, always do your own research as well.
12-22-2008, 11:13 PM
As peter schiff says the market fixes itself and its the governments involvement that has made things worse. Bailouts cant fix a company without some SERIOUS makeovers, which is extremely unlikely.
They are failing for a reason. The market is shedding some fat in tough times dont buy the fat.
12-22-2008, 11:22 PM
Look for the bargins with significant cashflow and a pipeline of quality assets. BHP and Rio Tinto are ones to watch.
12-29-2008, 08:01 PM
I'm not in the market at all and really don't know anything about investments, but recently I've been thinking I need to get better educated about money. You mentioned the yen. That reminded me of this guy Jim Rogers with a ton of vids on U-tube. He puts a big emphasis on commodities and agriculture, and he also really likes the Asian markets. What do you think about his economic theory and investment strategy? I had never heard of him before, but apparently he's some kind of investment guru. I LMAO looking at his videos too. The old man says what's on his mind with no BS!
12-29-2008, 08:11 PM
12-29-2008, 10:39 PM
I'll be sure to check out Jim Rogers. I've been trying to follow Peter Schiff's investment strategies as much as possible. He seems pretty brilliant, and everything he's saying makes sense to me.
IMHO, the best strategy one can make is to minimize dollar exposure to mitigate against upcoming inflationary pressures. Schiff recommends a combination of high dividend Asia stocks with minimal dollar exposure and Gold. Every non-inflationary *dollar* you make overseas equates to large amounts of actual dollars in our inflated dollars.
12-29-2008, 10:41 PM
12-29-2008, 11:24 PM
12-30-2008, 03:59 AM
Hurricane season always elevates oil prices due to platform destruction.
I have many more tinfoil hat reasons but wont share for fear of "theyre all gonna laugh at you, noo" lol.
12-30-2008, 04:04 AM
With gold you need to watch for a 'decoupling' trend from the US dollar - this indicated the price is no longer linked to the rise and fall of the USD, rather is recognised as a 'currency' in it's own right.
12-30-2008, 04:08 AM
12-30-2008, 09:42 AM
12-30-2008, 09:46 AM
12-30-2008, 09:55 AM
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