An investment seminar recently sponsored by Money Magazine & Charles Schwab preached about the virtues of stocks and money/mutual funds. When a question was asked about gold, the response was, "Gold is too cheap, and who cares." The Dow Jones is near its all time high, while gold and rare coins are near their all time lows in value of real dollars. Doesn't buy low and sell high make sense to you?
What do the markets & federal reserve have in common with a Yo-Yo? A Yo-Yo is nothing but a fad toy that goes up and down, does tricks and sometimes gets tangled. Sound familiar? During the first three weeks of Oct. 1997, Alan Greenspan said that he would do whatever is necessary to keep the course of the economy moving in a favorable direction. When the Dow Jones Industrial Average approached 8200 in the first week of October, Greenspan dropped in on Congress and said things looked inflationary. Gold began moving and approached $340 per ounce. Then Greenspan said the economy outlook was great and that there were no apparent signs of inflation and gold pulled back. What trick is he playing with the Yo-Yo? Changing of opinions sent tremors through the day trader while the small investor didn't have any change of heart.
In the 20 years that the U.S. has gone from the largest creditor nation to the largest debtor nation; The golden rule still applies- He who has the gold makes the rules.
In 1980 inflation was calculated very easily. Now it based on the CPI, GDP and not on volatile food and energy sectors. Everybody eats and uses some form of energy. Not putting food and energy into the inflation mix gives wrong information about what really is going on with the country and your investment.
Can you afford to lose
50%-70% of your profit if/when the stock market adjusts to a more reasonable
level? Have you made so much money that you cannot afford the taxes? Do you
need to protect your investment from the Yo-Yo effect? Then buy low and sell
high will make sense for you with gold and rare coins!
The
Eagle Collection