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<p>[QUOTE=&quot;SilverSurfer, post: 1041047, member: 21603&quot;]I hear this all the time, stocks are better investments than precious metals. But, past performance isn&#039;t any indication of future performance. I&#039;m sure the people toteing stocks as THE GREAT INVESTMENT, probably started in the 80&#039;s, when Reaganomics started (a whole nother topic I&#039;d rather not get into). Then these same investors lived through a rising market in the 80&#039;s, and 90&#039;s, and two huge bubbles (the .com bubble, and the housing bubble). I&#039;m sure if people were smart and got out of the markets just before they crashed, there was probably a lot of money to be made on top of all the money they made from the rising market of the 80&#039;s and 90&#039;s.</p><p>&nbsp;</p><p>But, times are changing. There is more wealth concentrated in the top 1% of American society, then this is in the bottom 90%. These are unprecidented times. And as someone younger, say a newly college graduate, the stock market just looks scary. With all the money being printed (Q.E.ing), what other bubbles are being fueled as I type this. </p><p>&nbsp;</p><p>One thing is certain, the money being printed for Q.E 2 isn&#039;t staying in America and fueling American businesses. Banks and corporations are already sitting on a mountain of cash. And what do they intend to do with all this money, raise dividend and buy back stock. That isn&#039;t helping our economy in any way, shape, or form. When the money from Q.E 2 gets released, banks will get it for .25% and then invest it in emerging markets like China, India, and Brazil which are offering a much better interest rate than anything you can find in America. Its like borrowing money for free and getting a guaranteed return.......which one of us wouldnt&#039; jump at an opportunity to do just that.</p><p>&nbsp;</p><p>But, soon the music will stop playing and then either the interest rates of these emerging markets will fall, or the interest in America will improve. Either way, all this money that was being priinted will find its way back to the U.S. and this can only mean one thing......inflation. As a matter of fact, the Fed is driving this event as they complain about too little inflation, like that&#039;s a bad thing. People, we don&#039;t have deflation, we have decreased inflation.....and with so many people out of work, I can&#039;t figure why higher prices would be good for anybody.</p><p>&nbsp;</p><p>So, with inflation all but certain, and too much money concentrated in the top 1% chasing poor investment, the next bubble is just around the corner and hard assest will prevail in an inflationary environment. Buy gold, buy silver, leave stocks to the hedge funders holding worthless paper when the music stops.</p><p>&nbsp;</p><p>P.S.&nbsp; Since precious metals investing is known to be a long term investment, when do you suggest people start, in their late 50&#039;s?&nbsp; Wouldnt&#039; something that is a buy once and hold until the price is right make more sense the earlier you do it?&nbsp; This way it give you decades to find an agreeable price.&nbsp; Even if the price dropped to half of what it is today, if you are 30, you have about 40 years to find another time to sell.&nbsp; Unlike Woolworths, like the poster above had mentioned.[/QUOTE]</p><p><br /></p>

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