25 May 2011

Investment: Gold Vs Stock Market - Can we eat gold for survive?

Firstly, let's back to basic, what is the essential thing for us to survive? Gold? Company Share? Money? or food? (Ans: Food, water and air)If the crisis will really happen, then we better buy a house + few lands for plantation (Note: buying price and other criteria needed to be considered first). Then we can get rid of crisis. Simple.
In fact, if we don't have enough of money to buy farm or land, we can simply invest in some good company to share their profits.

Give you an example, if Group A got 100% gold in this world, and Group B got 100% land in this world, who will survive at the end of the day?
Again, can we eat gold for survive? Land can produce unlimited food, but a gold may only used to pay one food, for instance.

Lastly, we should always bear in mind that if something is too good to be true, we should think twice; if a conspiracy do not look like real, it is not a conspiracy. To me, every thing must go to basic. Maybe we can review barber system if we really believe we can eat gold.

That's all for today. More fascinating articles and sharing will be updated from time to time in Xaivier Blog. So, you are welcome to subscribe our feed, look at our sitemap or simply visit our Homepage.

Written by: Xaivier Chia



danielfisher71 said...

We can not say we can eat gold for survive.But we can say gold is the way with the help of which we can survive.In this economic crisis of market gold is only way to invest and it acts as a safe heaven during crisis. Gold has an intrinsic value that never fades.
krugerrand coins

Xaivier Chia said...

My views upon your valuable feedback can be found at my latest post


paulroche said...

Stock market is very risky and you have to have full knowledge about current and upcoming market. It may be possibility for the market to go up and down.

Manny Backus Scam

Xaivier Chia said...

Yes, I agree with you that stock market is very risky just like doing business, that is, full of uncertainty. Simply put your money in stock market without doing sufficient research and study will definately cause pain and loss eventually.

Again, no pain no gain. There is no investment tool which got high return but 100% safe. (If got, nobody will do business).

But, of couse, there are some places which will "protect" the value of our money against inflation, such as commodities and limited resouces (e.g. oil, gold, silver, land) if the price you buy is reasonable or undervalued.

Nevertheless, the purchasing price plays a crucial role in any investment. Buying an asset with too expensive price will make you hard to break-even. Therefore, always make sure you know the intrinsic value of a specific asset and buy it only the price is reasonable or got discounted.

Best wishes.

Michael said...

I do agree that gold has an intrinsic value that never fades. In fact, it is just like any other raw materials, e.g. silver, diamond and wood.
US Gold Bureau

Xaivier Chia said...

Hi Michael,

Let me expand the statement - 'gold has an intrinsic value that never fades'. In other words, its intrinsic value is always the same and never increases. The reason for the price of gold increases is simply due to the depreciation of our paper money (in long term) or speculation (in short term).

Therefore, use the right price to buy gold is still capable to retain our purchasing power in the future, with the assumption that the amount of gold is still the same.

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