{"id":178,"date":"2014-05-25T02:45:21","date_gmt":"2014-05-25T02:45:21","guid":{"rendered":"http:\/\/aldrictinker.com\/?p=178"},"modified":"2019-09-03T14:53:40","modified_gmt":"2019-09-03T06:53:40","slug":"price-alone-isnt-an-indicator-to-successful-investment","status":"publish","type":"post","link":"https:\/\/aldrictinker.com\/?p=178","title":{"rendered":"Price Alone Isn\u2019t An Indicator to Successful Investment"},"content":{"rendered":"
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\u201cAiyoh! Why the price falls? I scared!\u201d<\/p>\n<\/blockquote>\n

You are not alone. Each day we hear news of economic uncertainty. Of market busts and booms. In a newspaper \u2013 I read The Edge Weekly \u2013 you can find mixed messages. But many people move according to price.<\/font><\/p>\n

Gold: Price Driven Mistake<\/h1>\n

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One point of time, the price of gold saw an increase. Between 2004 and 2012, it went from a 384 low to a 1889.07 high! A<\/font> 392.11%<\/u><\/font><\/strong> jump! A bandwagon was created in the midst of the economic slowdowns post 2008 Sub-Prime Mortgage & 2011 EU Financial Crisis. People needed money desperately. Hawks and vultures having gold suddenly played with the assumption that gold \u2013 being a valuable metal \u2013 will constantly increase in price. Many jumped onto the bandwagon. Gold investment companies began popping like mushrooms after the rain.<\/font><\/p>\n

People pressed for financial relief saw this as an opportunity. They saw a light at the end of their tunnel of fear.<\/font><\/p>\n

In Malaysia, the Federal Government began to hunt down the unlicensed gold investment companies \u2013 and scams. Why? People are loosing money all of the sudden. As if adding fuel to fire!<\/font><\/p>\n

But here is the historical picture:<\/font><\/p>\n

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Based on the graph, you can clearly see that the price of gold has huge spikes and a lot of plummets. Each time, many speculators and uneducated investors burn their pocket. Today, many are paying the price: the loans they took out continue to be paid, but the gold company is long gone.<\/font><\/p>\n

Yes, the price of gold in 1850 was $18.93. In 2011, the same weight it priced at $1,571.52 (<\/font>Source<\/a>). Notice that overall, the price of gold is relatively stable. Yes, it increases, but it goes up steadily.<\/font><\/p>\n

Despite it\u2019s value, the demand grows organically. Here I am referring to the organic and genuine demand. Demand where gold is used in industries or as an input. Did you know that gold is used in computer processors? With the demand for computers, there is a steady rise in the demand for gold \u2013 not merely as an accessory, but as a commodity? This article shows us where else this age-old precious metal are used in industry: <\/font>The Many Uses of Gold<\/a>.<\/p>\n

Seeing gold as an accessory or ornament no doubts illustrates how much it may be priced. But is it really the value?<\/font><\/p>\n

Evaluating Investments \u2013 Are You After the Fools\u2019 Gold?<\/h1>\n

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Fools\u2019 Gold, or pyrite, is a common mineral which many thinks are gold. It looks like gold, but it\u2019s without the same value. Because the masses cannot really distinguish between the two, scammers like to use the fools\u2019 gold to lure in their victims.<\/font><\/p>\n

If your aim is to build a sustainable future and to realise your dreams, fools\u2019 gold isn\u2019t for you. In fact, the surface isn\u2019t enough to convince you. Whether it shines like gold, or its price jumps like gold, you wanting to be an educated investor, and eventually a sophisticated investor, would ensure you are a step ahead, and a knowledge deeper.<\/font><\/p>\n

Earlier you read about \u201cdemand for gold\u201d. When investing your money, investigate the demand for the services or products of the company. During the DotCom bubble, people were interested in the\u201dhot stocks\u201d. They were looking for something new \u2013 something exciting. But businesses don\u2019t profit on stocks alone. <\/font><\/p>\n

In the same manner, economies are not determined solely and completely by the currency rate or the stock exchange. There are more fundamental issues that must be explored. If you\u2019re worried that this is getting more complicated, relax. Take a deep breath.<\/font><\/p>\n

It is our duty, I believe, to educate our clients, prospects and investors. Effectively, my peers and I are paid to know these developments. We are trained and licenced to be able to read and disseminate the information, subject to specialist consultation.<\/font><\/p>\n

Whether you are investing as an individual, or as a company, you must have a team with you. You may have two, three or four unit trust consultants. Why? Just as you are entitled to a second, third and fourth opinion when it comes to your physical health, you should act the same way for your financial health.<\/font><\/p>\n

Do You Have a Team?<\/font><\/h1>\n

In my case, I have 24\/7 access to and meet weekly: <\/font><\/p>\n