Cheat Sheet Q & A:
Topic: Gold sell-off
Why does gold continue to fall even as the Federal Reserve continues to print money?
Bottom Line: This has been a hot topic recently. Once upon a time buying physical gold (or other commodities) as an investment was a rare and unusual event for most individuals. Starting with the Great Recession and persisting for the last few years, it’s become a mainstream practice for many investors who are afraid of what the economic future of our country may look like.
Since gold has historically been used as a universal currency many have been buying it incase the US dollar collapses. This seemed like a sure fire strategy for many individual investors to protect themselves against economic collapse and profit as an investor with the rising price of gold as it rose from hundreds of dollars and ounce to a peak over $1900 per ounce a few years ago. With the Federal Reserve and other central banks around the world watering down their currency it seemed like a certainty to many that it would just continue to occur. Predications that gold would go to $3000 or even $5000 per ounce became common place. Gold became desired by so many individual investors that we saw new creative ways for you to buy it (fractional gold) in quantities that are even smaller than an ounce. That should have been the first indication that a bubble in the commodity had been created.
I can provide a great deal of analysis as to why this is occurring but if we take a step back and boil it down to the basics… Gold is what? It’s a piece of metal. It doesn’t produce anything. It can be turned into a product that may be desirable but that is the extent of its net effectiveness. In other words Gold is worth what someone is willing to pay for it at any given time. Nothing more or less (It isn’t tied to the US dollar and hasn’t been since the 70’s). Naturally many will ask: Isn’t that true of any investment? Actually no.
If you have an investment in something that produces a profit and you get to share in that profit, it is a different outcome. In fact with my stock portfolio I don’t track monthly progress based on the total value of it at that moment in time (that’s more of a vanity metric). I measure my progress based on the amount of income that’s being produced. That’s the number I want to be progressively increasing.
Now this doesn’t mean that gold won’t rise once again or that it may not be a good investment. What it means, for most people, is that if you put money into physical gold – it should only be money that you can do without. If the gold makes you feel protected against economic collapse and you don’t need the money then it may be a good idea to buy and keep it. If it’s money you are counting on then perhaps it’s not the best idea because it requires you timing the gold market just right or risk losing a great deal of money – which is exactly what’s happened to millions of Americans.
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The return of the
Bottom Line: I’ve been hearing horror stories from mortgage brokers working with would be real-estate buyers. At issue is the buyer that has been house hunting without having a mortgage rate locked in during the process of hunting. With mortgage rates rising by 30% over that last month many would be buyers are finding they can no longer afford the homes they want to buy.
So what do you do if suddenly you can’t afford the home you fell in love with? Get creative and the banks are willing to help. With mortgage rates rising all types of mortgage applications have been declining. Save one. The adjustable rate mortgage. For many this is a terrible idea, unless…
The only reasons you should consider an
If you have an Android based device – what you need to know:
Bottom Line: Tech giant Juniper Networks just completed a comprehensive analysis of app based malware. The results are fairly stunning.
The Android app stores are littered with apps that contain malware. More than 272,000 apps currently available for Android devices contain malware. That’s a 600% in just the last year. The knock against the Apple app store has been that Apple must approve every app that goes into their store. That includes a vetting process. The Android app store is an open source platform that’s much easier to gain access to for app software developers. That’s good and bad. The bad is indicated in this story.
Apple’s app store had virtually no apps that were contaminated with malware. Android’s, as indicated above, had more than 272,000 apps that were contaminated. Some of the malware is capable of taking over your device and stealing your information. So what should you do?
If you are familiar with the company and or software developer, you’re likely safe, but before you download apps from unknown companies you should look them up online to ensure the apps are safe.