is it better for me to buy a gold to make the value double in a year?
- cactusgeneLv 79 years agoFavorite Answer
It is my opinion that in a year your gold purchase would only be worth 75% or less of what you pay for it now, with virtually no chance of it doubling in value. All precious metals are in a bubble, not unlike real estate was 5 years ago.
- 9 years ago
I doubt the price will double.
I have bought some gold just in case, but you shouldn't do that to make a lot of money. The price is very high right now.
If you buy gold, you are basically betting that the economy will worsen further. Gold accounts for 15% of my savings right now and that is a lot. Because the economy is bad. In the medium term I expect to break even, or lose a bit. BUT, in case of a default in Europe, which isn't so absurd, then gold might be worth a lot more than money itself.
In a way, you should buy gold to cover for your most pessimistic expectations about the economy in the near future, in my opinion. If you make a profit, then perhaps you won't be so happy anyway, as that might mean an even worse situation than we see today.
If the economy improves, then your gold may lose quite a bit in value.
- DavidLv 79 years ago
Those of us that have been in the markets for decades are always amazed at the newbies that come here with a PLAN to double your money in a year. As with all newbies that concentrate on profit rather than risk, your naivete is a PLAN for disaster.
You make no mention of the size of your investment or the percentage of your portfolio you would invest in gold. If the EU fixes it's problems and gold declines $400/oz, how would that effect you? Have you even considered that the risk may outweigh the potential in the short-term? Certainly, a 2:1 reward/risk ratio would be hard to imagine.
Be realistic, think in specifics, and try to approach reality instead of counting mythical profits that you have no means to attain without risking it all.
- JoeyVLv 79 years ago
" BUT, in case of a default in Europe, which isn't so absurd, then gold might be worth a lot more than money itself."
Uh...that's just not how the world works. If we have default in Europe that would casue already very low money velocity to drop lower which is deflationary, not inflationary. If Italy announced tomorrow that they were defaulting, gold would be annihilated. Have you noticed the POSITIVE correlation of gold with global equities recently? What do you think that's about?
Amazing the things that people think gold should hedge against....
Anyway, you can't even buy options that bet that gold is doubling in a year because the market thinks that's so unlikely. Your understanding of capital markets is about as good as the grammar in your question.
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- 9 years ago
I think silver would be a better investment than gold. Silver is used in our everyday life with technology and the medical field. Also, there is less silver on earth than gold. Percentage wise, silver would be better than gold. Silver is under valued and gold is over valued.Source(s): CNBC http://www.youtube.com/watch?v=f_PQJXWT4rc
- 9 years ago
Buy silver but if you can afford it then buy gold. Buy Eagles, Maple leaves, pandas from a coin shop or pawn shop. I Buy silver and gold for insurance purposes just in case our financial system crashes and our dollar goes to zero. Precious metal will become a bubble in a decade but I buy it like health insurance, you hope not to use it but have it just in case something bad happens.Source(s): http://goldprice.org/gold-price.html http://silverprice.org/silver-price-per-ounce.html Me
- Anonymous9 years ago
10 years ago, someone asked "Is it better for me to buy a house, and let it double in 5 years?"
15 years ago, someone asked "Is it better for me to buy an internet IPO, and let it double in a week?"
The only way to consistently earn money from investment is to diversify.Source(s): www.qi-research.com