Category Archives: STOCK MARKET

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Should we start investing in gold.

With the current financial instabilty should we start to invest in gold.

Recently ive been getting really interested in gold and investing in this precious metal. The gold rush is now over, and prices have stabalised. However, with the recent foreign affairs issues the price of gold is increasing slightly. Is it best to jump in now and invest before the people get thrown overboard?? Who knows,

But it does slightly make me anxious when you see top business men solely investing in gold, even going as far as to only trading in gold. Why would they do this?? What do they know that we dont?? im not sure, but everything seems to be a little bit fishy!!!

Whats everyones views, ill leave you with a short overview of Gold 🙂

“Everywhere you look, people are talking about gold, and it isn’t even Oscar season. So why have precious metals been taking center stage?

Well, when investors are scared, they have historically bought gold, silver and other precious metals as a security blanket.

Beyond their uses in jewelry and industry, precious metals are seen as a hedge against inflation. Why? Because investors assume such metals will hold or increase in value as major currencies decline in value due to financial uncertainty.

Famed investor Warren Buffett describes the dynamics of this phenomenon best when he talks about gold: “Gold is a way of going long on fear, and it has been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in a year or two years than they are now. And if they become more afraid, you make money; if they become less afraid, you lose money. But the gold itself doesn’t produce anything.”

In other words, precious metals tend to soar in price when investors have great anxiety about the future. But when that angst goes way, prices fall back to earth.

Well, judging from the prices of precious metals, investors don’t expect to be fearful a year or two from now. Gold prices have fallen more than 17 percent this year. Exchange operator CME Group had to halt the trading of silver four times on May 19 after prices plunged more than 9 percent that day.”

BitCoinns- The market of the future??

Check out this post from TheStraightDope, ive never quite understood how bitcoins work but this guy has managed to put things into perspective for me!!!

With the current economic climate I feel BitCoins are the real way forward and id recomend investing in them now before the economic climate completely colapses.

Whats everyone think to it??

Bitcoin is a virtual currency, but that’s like saying computers add ones and zeros — you don’t get any sense of the complexity of the thing. I’ll give it a shot below. I should tell you my initial reaction was the bitcoin was an impossible techno fantasy that was certain to ruin anyone foolish enough to put their trust in it. But now I’d say there’s a chance it’ll become the Krugerrand of our times.

Virtual currencies are familiar to those who play massively multiplayer online role-playing games, or who maintain a cyber-presence in online communities like Second Life. For the most part these virtual currencies are divorced from the real world — you can become a virtual millionaire selling virtual real estate in Second Life and still be sleeping on your real-life mom’s real-life couch.

Bitcoins are different. They’re virtual in the sense that they exist solely in cyberspace, but they’re expressly designed for the real world — specifically, any form of commerce where anonymity and untraceability are essential. Funds can be sent digitally across borders without physical transfer or anyone looking over your shoulder, and there are no fees or international exchange rates to worry about. For these reasons bitcoins originally appealed mainly to anarcho-utopian types, plus drug dealers, gamblers, and thieves.

Once the exchange rate for bitcoins shot up in 2011, speculators got into the act too, which I can’t say classed up the situation much, but it did put the bitcoin on the financial map. At the moment the 11-plus million bitcoins in existence are worth roughly $1.2 billion. To be fair, bitcoins are used in a growing number of legitimate transactions, although I still wouldn’t ask the pizza guy to break one.

At a certain level of abstraction, the idea behind bitcoins isn’t that complicated:

Transactions are peer-to-peer — that is, directly between two computers online, with no intermediary. There’s no central authority and no recourse. If bitcoins get stolen (and it’s happened), they’re gone.
There’s nothing backing up bitcoins. Their value is dependent entirely on what people agree they’re worth.
The system doesn’t work on trust, though. Each bitcoin includes a log of all previous transactions in which it’s changed hands. When a bitcoin is transferred between two parties, its transaction log is broadcast to all bitcoin participants. A subset of this group, called bitcoin miners, competes to perform what amounts to a validation test on the transaction log. This task requires a special high-powered computer rig to do the voluminous processing involved. Whichever miner is first to successfully validate the transaction log notifies the rest of the bitcoineurs, and the transaction is considered valid. This process takes between ten minutes and an hour.
For their trouble, successful bitcoin miners earn new bitcoins. That’s how bitcoins are created, ensuring the number increases slowly. Crucially, the system is designed so total coinage will top out at about 21 million. Bitcoins are thus immune to inflation.
The above omits considerable detail, for the obvious reason that if I got into the full cryptographic complexity your head would explode. Instead let’s move on to a few meta-observations:

One of the strengths of bitcoins, namely that their quantity is limited, is also a weakness. The money supply has to grow more or less in proportion to the underlying economy lest we have deflation and depression. Regulating the money supply is why you need central bankers, feckless though they sometimes are. For that reason bitcoins as currently constituted will never replace government-backed money.
That’s not to say bitcoins can’t have a role as a supplementary currency. God knows we all engage in transactions we’d just as soon no one knew about — arms trading, money laundering, or trafficking in endangered species and sex slaves. To the extent bitcoins become acceptable tender for everyday commerce, we can also avoid taxation, eventually transforming our overregulated society into a paradise like Greece.
A drawback for the time being, however, is that the exchange rate between bitcoins and conventional money fluctuates wildly. In 2013 a bitcoin started off worth around $13, shot up to $266 in the wake of the Cyprus bank crisis, dropped within a week to $68, and has since ping-ponged between there and $154. (As I write it’s at $103.) Bitcoins, in other words, aren’t a reliable store of value but a speculative commodity, like gold. On steroids. And with gold you needn’t worry about a hard-drive crash.
Sure, things may stabilize eventually; bitcoins have only been around since 2009. But that’s scary in itself. The tech world is full of brilliant inventions that fell by the wayside; when’s the last time you used that Zip drive? Another worry: the bitcoin realm gets hacked, although it’s proven resistant thus far.
Me, I’m confident bitcoins will never become worthless. I’ll bet you a million BTC.