http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=2715 I think this is the guy with the moustache who runs "The Forecaster" newsletter, I saw the ad recently in the CDN. He claims to be making a lot of money for people, one recommendation was low mintage modern gold eagle fractionals. Any one here tried a subscription with this gentleman?
Just another guy charging you money to tell you the basics of how to make money. And usually they are the ones making the money.
While no one likes losses, if the #1 point of investing is asset preservation then over time you will usually get substandard returns. The only long term safe investments in that regard lose money after taxes and inflation. Age is a huge consideration of course, and asset preservation is much more important to those near retirement, but really bad advice for a 20 year old. I am in the middle, still trying to grow but in a few years will start to move a little more into bonds and such.
I always wondered why people signed up for these. If someone really knows how to invest and make money, why do they need to sell subscriptions? I would be sipping a cold beverage on an island somewhere making 2 phone calls a day if I truly knew how to do what many of these people claim. Always ask why they need to charge you money if they are so brilliant at making money. The only answer is that their genius of making money is by suckering you in to giving it to them.
In terms of the best paying money making opportunities, the higher the risk, the greater the profit. If you talk to workers at brokerage companies they are mostly investing in mutual and indexed funds. I have made over 30% overnight on penny stocks and made the mistake of not taking profits immediately. With the precious metals we are in uncharted territory according to a long-term expert who sends me his take on current economics.
I've rarely found that to be true in my investing. Usually, the higher the risk the greater potential for loss, and thats as far as it usually goes. It seems people who tend to sell their advise are usually those who can't make money by following their own advise. Guy
Well, my answer to this is diversification. The most dangerous thing anyone can own is only one type of asset. Assets like stocks are priced assuming that they are part of a diverse portfolio. Therefor, a lot of the risk in holding this asset is diversified away, (for example, if you hold a gold mining stock it may go down in good economic times, but that loss would be offset by other stocks that would go up). If you balance your portfolio, you are minimizing potential overall risk while getting the highest balanced returns. The market prices of assets expect this, so if you are holding way too much of a certain asset, (anything, could be banks, miners, real estate, physical gold, etc), you are taking much higher risks for the expected return than everyone else. Any kind of huge holding in your portfolio is by definition too risky. Yes, you may get lucky and hit it big, but odds are you will be taking too much risk for the returns you get back. Just like I never advocate 100% PM, I never advocate 100% ANYTHING, even US bonds. Having your assets spread out among a lot of really good bets that are each different than the other, (doesn't count if its 4 types of PM, or 15 different bank stocks), is the only semblance of "safety" nowadays. I don't know what to say about your penny stocks, I have always likened them to basically playing a slot machine but almost guaranteed to lose to insider traders, so I have never tried.
