Safe Bets for Your Investment Portfolio
In these uncertain financial times, governments and financial
institutions across the world are snatching up US short-term T-bills, or
treasury bills, to safely store their capital. Many large institutions
consider T-bills to be a safe bet among the global equities that are
crashing all around them.
They're seeking out a safe place to hold their capital until their
confidence in global markets returns to normal levels.
This situation makes me think of people who nervously stockpile enormous
amounts of water and canned goods when faced with the possibility of
They want to be prepared, just in case their worst nightmares come to
But US T-bills are only a temporary fix, and some experts are wondering
where that money is going to end up once the T-bills mature. In his article
titled, 'What's Going on in Gold,' 'Alex Stanczyk states, 'If the money
flows back into equities, we may see a return to something semi-resembling
normalcy. If confidence has been damaged to the point where that doesn't
happen, I expect to see a good chunk of it flowing into gold and silver.?
To those who are questioning the current drop in gold prices, I wouldn't
worry too much. Stanczyk notes that gold is actually doing quite well these
days, all things considered. In fact, the price of gold has been going in
the same direction as the USD in most cases. Lately, when USD goes up, gold
often goes up as well. Seeing that gold doesn't often follow this pattern,
this is quite an interesting situation to watch.
In other gold news, an interesting fact that you probably don't know was
shared with us in an article titled 'Seeing Through the Panic to Profits' by
Larry Edelson. He states that the Dow Jones Industrial is trading at an
astonishing 77% below its recorded high level.
Sadly, it's true. According to Edelson, 'honest' money (aka gold), has
been devastatingly devalued in terms of the Dow Jones Industrial, and it's
all because we no longer use 'honest' money for our currency and rely
instead on ever-changing currency exchange rates that exist on nothing but a
promise to pay.
Take a look at the history between gold and the Dow: In 1999, the Dow
bought 44 ounces of gold. Currently, the Dow Jones buys under 10 ounces of
gold. Hence the staggering 77% decrease in purchasing power.
Trust me, I know that the fluctuating trends in gold can be difficult to
follow and truly understand. If you find yourself overwhelmed by what this
information means to you and your
investment portfolio, it may be time to
turn to an expert to walk you through your choices and help you make the
best decisions for your financial future.