Savvy investors have been silently investing in gold for decades. You don’t usually hear about these gold investments, because there is nothing to say. They pick up a few coins here and maybe a few bullion bars there. Every time there is a little dip in gold prices, they pick up a few more pieces.
If Mr. X billionaire buys a few bars of gold, that is not news. Now, if Mr. X billionaire buys shares in company ZCD, that makes the news. Why? Because smaller investors like to follow the lead of the big guys. Gold prices might raise interest, but only because the price of gold is closely related to the world economy and inflation. No one cares who’s buying the stuff.
Mr. X Billionaire probably buys gold futures, as well. That doesn’t make the news either. Gold futures are traded on the stock market, so you never actually own real gold, just virtual gold. You get a document stating you own the gold, but that is all. It is very risky. Of course, Mr. X Billionaire can afford to take chances.
Unless you can afford to lose the money you invest, you should stick to real investments like gold bullion, gold coins and real estate. That’s right. Despite the housing meltdown, real estate is still one of the safest investments around. In fact gold and real estate are about the only safe investments. You can also use gold ira for investment.
No matter what happens, people will always need a place to live. If you don’t charge astronomical rent or try to give someone a mortgage they can’t afford, your investment will be safe. Just as with gold, real estate almost always appreciates.
Think about the home you own right now. Is it worth more now than it was when you bought it? Chances are you answered yes. And if you bought this house in the early eighties or earlier, before house prices were artificially inflated beyond belief, it is probably worth ten times more than what you paid. And the best part is that it is probably paid in full by now. If not, then that means you have made some very poor financial decisions over the years.
Depending on where you live, the average house prices in the early eighties were about $40 000. The smallest down payment acceptable at that time was about 25 %.