Where will you be 5 years from today ?

Ford was just an example.

Regardless, pretty sure the outlook on Ford is way better than Chrysler and GM. They have made better choices and it is paying off in the stock price rally.

http://www.youtube.com/watch?v=u7Ff-m90u8Y

Of course, hindsight is 20/20... it's easy to look back at a chart and say "Buying Opportunity". The key is to try to predict when a stock (or any commodity) has dipped and will be going back up... not a perfect science. Don't "bet" money you can't afford to lose.

Michael

 

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i hope i never have to be your customer in your current line of work. no hard feelings

 

I do not really care about the price. I buy silver and gold as a hedge against bad inflation or economic collapse. The price will be what it will be. If the economy is really bad the price will go up. If the economy is good, the price will go down. Precious metals offset my other investments.

 

Just to give you something to think about...

Long ago I spoke to my father in law and father about this since both of them experienced life in a busted economy after World War II ended. Both indicated that if there is an economic collapse, gold and silver will be pretty worthless until things get better. Everyone is trying to sell or barter their gold and silver, and the purchasing power drops considerably because nobody wants it. Things like cigarettes and soap that have value as a consumer good become the most valuable "currencies."

The lesson is that there really isn't any way to protect yourself from economic collapse. Don't think you will be okay because you own gold and silver.

 

Cloudsweeper99 has it right on the money. In a busted economy the things we don't think as valuable will become valuable. You can't eat silver or gold.

 

I agree...one of the reasons to diversify your assets. It's next to impossible to figure out what will have value in the long run.

A mix of paper assets (stocks & bonds from different parts of the world and real assets (commodities, real estate, precious metals) should serve you well.

In any financial crisis, you will have orchestrated action by the governments of the world to find a remedy since the global economy is so interlinked. That's what is happening now.

Precious metals should be part of your asset mix, but the smartest investors with the best long-term records managing money say precious metals should make up no more than 10% of the total.

 

Just curious Cloud, what countries are we talking about?

This is an excellent observation. Of course there can be different forms of economic collapse. What about after they came out of it. How did those who had their wealth in gold do compared to those who had their money in banks or other paper assets?

I agree with cigarettees and soap. Perhaps ammo and food as well, who knows? The best investment is to stock up on stuff you're going to use anyway, because shortages are always unpredictable.

 

Southern Germany and Japan.

 

So what do you think the prices will be in 5 or 10 years?

 

It will be interesting to see if the US will enact another Gold Reserve Act as was done in the early 30s if they feel the value of the dollar is being affected deleteriously by gold possession and trade by individuals. If this was done in conjunction with other countries, gold ( except for jewelry and collectors coins) could be taken by the treasury as was done in 1934. I am sure that any US gold post 1933 would be considered NON-collectible. I know this will raise a fuss with all of those who bought gold coins from the mint. Isn't it nice the mint has the mailing addresses for all of those coins. Hopefully this wouldn't happen, but I can't see this government allowing the price of gold ( in US dollars ) to become too skewed. Silver would seem to be a more secure option. If things are not improved by mid 2010, there might be a good reason that Smith and Wesson is such a hot stock currently. Better get them from the gun shows.:kewl:

Sadly,

Jim