Saturday, August 4, 2012

FAQ: long term investments? | Gold Investment Trading Report

Question: long term investments?

when i get a long term investment say i buy like 100 shares in gold or something how can i possibly loose all my money, and if i do and say its because the price went right down when it picks back up do i get my money back or am i still left with nothing, thankyou :)

goldsenze.com Answer:

1) You technically can?t lose all your money on a commodity, just a good chunk if prices go down.
2) Paper assets like stock or bonds can become worthless if the entity that issued it goes out of business.
3) Distressed assets can many times rebound and eventually earn a profit. It just has to rise above the basis, or purchase price, and that would be your capital gains (don?t forget to consider dividends or interest).
4) In the Long run, you will have some losers and winners. The market has shown over the long run it performs well.

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Source: http://www.goldsenze.com/faq-long-term-investments/

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