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Is gold a good inventmanet? Wha tis te best investment? I was told gold could double in 5 years?

Is gold a good inventmanet? Wha tis te best investment? I was told gold could double in 5 years?

Answer Question
 
four2bmws

Asked by four2bmws at 2:36 PM on Nov. 30, 2010 in Money & Work

Level 14 (1,470 Credits)
Answers (4)
  • Not right now it isn't. Right now gold is selling at all time highs. When the economy is bad, people panic and rush out and buy gold, which pushes the price higher and higher. Then when the economy is good, people don't and the price drops drastically. So here was are in a poor economy with gold at super high prices. It will take more than 5 years to get any kind of return on your investment at all. Eventually the economy is going to get better and the price will drop again. It could easily be 15 years or more before you re-coup your losses. Now the people who bought gold during the good economy when prices were low......those are the people who are currently doubling their money.

    A good investment is finding a good mutual fund and looking at it's long term profits. You want diversification. Don't put all of your money in one basket.
    slw123

    Answer by slw123 at 2:54 PM on Nov. 30, 2010

  • how long is long term?
    four2bmws

    Comment by four2bmws (original poster) at 8:39 PM on Nov. 30, 2010

  • 10 or more years.
    Erica_Smerica

    Answer by Erica_Smerica at 11:05 PM on Nov. 30, 2010

  • If you have money to invest in something, go to one of the discount firms like Edward Jones or Charles Schwab or Fidelity and ask about mutual funds. They will show you charts on how each fund has done in the past 10-15 years and give you the average rate of return. You can also ask them about gold, so that they can give you a better explanation than I did about why it's not a good investment. You can talk to these people for free.

    Gold is just another mineral that comes from the earth. I know people say that if the economy collapses, everyone will turn to gold for trading. It's simply not true. In reality people are going to trade what they have for what they need. If the entire economy and money system collapsed, the most valuable mineral for trade is going to be SALT. You can't cure and preserve food without it. I'm not saying invest in salt either, but just think about it.
    slw123

    Answer by slw123 at 8:26 AM on Dec. 1, 2010

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