On Investing in 2012 and Beyond

Regarding matters of investing just the following:

When it comes to investing, one of the golden rules is: “never put all your eggs into one basket!”  Diversifying is the rule to successful investing.  Although Warren Buffet says that if you REALLY know what you’re doing you don’t have to diversify so much – unfortunately most people don’t!  We can learn much from the Jews, as God has blessed them mightily when it comes to finances and wealth.  They have always traditionally invested in 1) Property 2) The stock market 3) Gold, and 4) Art.  Historically the stock market has always offered great value, if relatively low risk stocks are acquired in companies that have proven themselves over time; but it is a medium to long term investment, and nót short term.  Speculating/day trading is just too risky and too close to gambling.  Unit trusts are also a good way to invest indirectly in the stock market.  You can buy property shares, or property unit trusts on the stock market.

I have always liked gold very much as an investment.  It has absolutely proven itself over centuries as a safe haven and store of wealth; but it can be volatile and is a bit high currently.  Over the last decade, stocks went down 24 percent while gold rose 280 percent.  Gold shares in good gold mining companies are great, as well as gold ETF’s and gold unit trusts, gold coins, and gold jewelry.  Though gold coins are better stored safely in a bank.  Silver is also a good investment, and becoming quite popular – many people are increasingly looking at it (coins, jewelry, silverware, etc).  Over the last ten years the price of gold has gone up 500% and the price of silver 600%.  I personally love to invest in fine art and have made some good money with it.  But then you must really know what to buy.  Some believe it is the finest investment of all, like Paul Getty did.  It is also a medium to long term investment though, and it should be securely stored.

Having said the above however, I must say and stress that I believe that the world’s financial system has a good chance of seriously crashing/collapsing in the near future.  The dollar will also most likely be severely devaluated…  The 2008/9 crisis were just blips and warnings of what really is still to come.  Capitalism is being seriously shaken everywhere.  The world is operating on fiat money, which is essentially worthless and cannot be sustained for much longer.  When the world was taken off the gold standard (when our money was linked to the gold standard and still had some intrinsic value), economies did reasonably well.  Many nations are now essentially bankrupt.  I strongly believe that in these times one should not really be part of the financial system and the stock market, but rather be investing in tangible assets – hard assets.  I personally believe in gold (gold coins, collectable/rare gold coins), silver, fine art, and prime land – maybe also good stands and buildings when it comes to property.  It is not really so much part of the system.  Remember also, people increase, but land never.

PLEASE don’t gamble your money away on forex, options or futures!  95%+ of all people lose their money on these kinds of day trading – and so have I!  The odds are tótally stacked against you!  See my post on this blog about forex, speculation and day trading.

Please also be véry careful to invest in any business venture that offers interest rates, or returns on an investment that are much higher than a bank can offer.  It is usually a scam!  But people nevertheless get caught again and again.  There are also many, many pyramid/ponzi schemes out there.  People/friends are always trying to involve one in those, because when they do, they get you in their downline and directly benefit from your purchases in the future.  It too (including network-marketing/multi-level marketing), according to me, is unethical, because they basically want to make money out of your purchases, without doing any real work for it themselves!

It is also crucial to have a good financial adviser whom you can trust.  Usually the ones in the banks are not so expensive and are sometimes even free, because your have your account there!

I hope this helps.  But, in the last instance this is only my personal opinion – you have to ultimately decide for yourself.


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Filed under Finances, Gold, Investing

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