How can an average person preserve capital while the dollar falls?
Question: further than it already has. I have some cash sitting on the sidlines, and I have been saddened by its loss in value over the last year or so.
What can I do to preserve capital without going into the American stock or real estate markets (a fine house of cards they appear to be)?
I have bought some gold coins, but the added costs, over and above the price of gold, make them unattractive. With all costs involved, dealers quote Philharmonics at prices of $35 above the spot price of gold itself.
I would appreciate realistic suggestions.
Answer: Better check an American English dictionary before attempting to define words like Capital used in the financial sense of the word.
“Wealth in the form of money or property owned by a person or business and human resources of economic value”
Money is most definitely created. It is created by commercial banks.
Yes, I know you are just a miseducated victim of the k12 school system. Gold will perform inversely with the U.S. Dollar. Because Gold, the metal, is priced throughout the world in U. S. Dollars, it responds in kind to dollar devaluation with increases in price. See this ratio chart:
http://stockcharts.com/def/servlet/SC.web?c=$usd:$gold,uu[h,a]macaniay[pb50!b200!f][vc60][i]&pref=G
Gold mining stocks are very volatile because the U.S. Reserve Banks are short Gold, but longer term they will not be able to hold the price down.
There is a new closed-end gold fund, symbol GLD that tracks the metal price, and some good gold mining stocks to trade: ASA, AU, BGO, CDE, CBJ, FCX, GG, GLG, GFI, HMY, KGC MDG, NG, SSRI (silver), WHT. CHOOSE CAREFULLY!
Related Posts
Filed under: School Loan
Leave a Comment
XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
TrackBack URL | RSS feed for comments on this post.