Is Gold the Best Investment Right Now

Is Gold the Best Investment Right Now

Coal prices are up by more than 20% since last August. Is it time to buy gold? in this video, We’ll answer this question If you’re new to this channel Please consider subscribing and one you video everyday about the stock market about investing and about entrepreneurship So the first question we should be asking ourselves is why is gold up? So gold, it feeds on pessimism and has been a lot of pessimism around the world Jameson’s lost focus. So here are the main reasons of this pessimism The first one of course is the Fed has been rising interest rates, and this has been causing Pessimism in the stock market because with higher interest rate Businesses, it’s how the pro-business estimates to get loads and for them to invest in their business That’s why there is so much pessimism. Our interest rate second reason of course is a trade war It’s a breakfast all-digital Java litical reasons have caused brat supposed to go odd-even what’s happening in Venezuela? Causing the price of quality go up that reason is the government shut down again We can call it a political reason for prison is uncertainty in the stock market in the stock market has been for a time you’ve seen what happened since August we can’t say that helped with a crash in the stock market in Little Rock and then just October went into a correction board in December It was about to go into a BM. Okay, but then in general January was a fantastic Yeah, it was one of the best performing month for the S&P 500 ever So there are a lot of volatility right now the stock market and this is pessimism people don’t want to invest in the stock market With so much volatility and that’s why they prefer to buy board This is the fifth reason whether it is entertained in the stock market everybody Most people expect that there there can be a market crash if you ever get any recession coming So according to JP Morgan Chase, there will be a session 2020 the 70% chance of a researcher in 2020 and most of the d-backs most of the Wall Street analysts most of the economists even the radar do most of the big investors an inductive by 2021 who should be seeing a recession the sixth reason because of Zermatt pessimism is because the rest of the world is that being so grateful the moment if you look At China’s not really great. If you look at in the absolutely great actually Rob, it’s not doing great Italy recently and the recession so things are not going doing that. Great like in a burka Around the world and people all these investors in merging countries in European countries They are white gold to hedge against a possible worldwide recession in the next year now Let’s assume that these people are right things are really going to get worse Should we buy gold now? Should we hedge against the stock market? Should we be hedging it is not only the stock market economy should be purging in General because as we know the best hedge of what is cold people have been hedging Familia music Oh, so is it the time to buy coal right now? The answer is no because hedging is for idiots I’m not telling you not to buy coal not to trade gold. If you can do it to choke them. You should create gold it’s one good way to make money to trade on this because there have been a lot of Variety very good in the gold market lately. So it’s one way to make money in the short term Yes, that’s a good thing. But if we want to buy gold just to help this is a bad idea Hedging is for idiots Let’s say there is a great business you want invest in this business and when you’re Investing in the business what you are ready to keep for insert the stock price the stock price doesn’t matter so much What you’re buying is actually the fundamentals of the business And as long as the business is doing great. The Federman this will be great. It doesn’t really matter What you the stock part if the stock price goes down? you will be buying more of this stock and the stock price is going up maybe and if the means are not growing as fast maybe if you So this is how you keep the look at businesses. It’s not something that you should be passing It’s about the stock market and you should head because you remember gold. Is that a value producing a set goal? Never produces value you just buy gold. It’s just gold in treatments like this. It doesn’t produce any value It’s not like when you invest in real estate You get rent get cash flow. There is a there is money coming in So it is producing that it is giving you movement for you But you invest in the stock market when you buy shares of a business the business is working The needs of the business is growing the book value of the business is growing. The business itself is great So it’s a value producing asset but gold or any other commodity itself a value producing asset So what you are actually paying for you’re paying for something Expecting that someone will buy this something for a higher price And that’s a while you are expecting someone else to buy at the higher price. So this is how it works For example, let’s look at Goldman Sachs. This is a business It is the body purchasing assets the means it’s big money every quarter and we’ll markets earning money and reduce any money and In December the stock price whichever term and then it move up by more than 26% so far So you see if you add in a certain goal you are made less money But if you could have detected that Goldman Sachs was an enterprise stop for the moment. It’s worth later of course invest in Goldman Sachs and if you look for the long term If you look for the last hundred years the price of gold hardly move is move only when there was a lot of pessimism For example to me the world was during recessions These are the types of the price of gold went up and there was a purple in the nineteen It is a culpable people who are scared about The humans do know as a currency because it already under the gold standard and people who buy gold instead So there was this verbal but crushed it So if you look at the price and you are just for inflation, you will see that it’s hardly move Let me just give example. Let’s say you bought a 1000 USD low gold chain from Japan Yanko in 1987 in 1987, Japan yankovic public Today this goal is worth one thousand three hundred years Iran You made are different that we as a lot from this transaction but instead if you had bought Shares of Japan yen. Good one of the US dollar investment in Japan and good today. This will be worth 75,000 euros I’m not even counting the dividends So you see why the stock price of Japan and group we always are group the goal itself It’s because of an echo is value producing I said value creating I said it’s growing the business is growing in the 1980s variant cuz the main business of Japan and covers in New York City in Manhattan and efferent neurons even English Manhattan But now it’s green They have been opening stores in the Asia in China in Japan during the California Gold Rush, you know All these different way the most money is actually those people who were selling the Shirelles not those people are going to find them all So you should know how to make money from goal. It’s possible to make money from home It’s possible to make money even from a declining stock market This is possible. But you should do where you can meet the money and it’s not in the commodity itself, even the Standard Oil turned it over further. He deducted money actually from all itself from extracting the oil from the earth He may not even refining the oil to conclude I’m not saying he’s not do to lessen whole you can invest in gold in the short term Maybe the price will continue to go up you can trade on that you can make some money on that But if you are not your investor and you want to hedge, it’s a bad idea It’s useless as you don’t see wonderful hedging If the stock market is expensive, they are stuck Expensive stocks. You should just get a car when the price goes down. You will buy But hedge, I don’t see any reason to head apart from the fact that you’re expecting someone else to pay for the higher price But that someone else like I said, it’s also expected for someone else before a higher price. It’s like in 2017 we’ll be going in 2017. This happened with God so everyone was expecting God to go just go up because there was someone else willing to buy at a higher price in 2018 it was with marijuana stocks. Someone else wanted to buy at a higher price, even if those companies were not producing enough Profits they were not profitable that much even today most of these marijuana companies are not so profitable People are willing to buy because they want They think the price will just go and because someone else will buy at a higher price and today in 2019 It is called every other is one. You think that people want to buy just because the price is green I don’t know 20 20, maybe it will be compact poop. They reduce you big poo. Maybe this will be the The next new things which is going to make people rich quick if you are interested in gold I would like to hear your opinion Why do you invest in gold and if you think that happiness report that why it is important Thank you for watching this video Please like subscribe and share subscribe for one new video every day about the stock market about investing and about Entrepreneurship to help you become a better investor. Have a nice day and good. Bye

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