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The Wise Investor

On the whole, I suggest that you keep to the simple, tried-
and-true investments in the three sectors. You may wish,
however, to include some of these investments as a small
part of your portfolio."
John paused, exhausted from speaking. Even after all this
time he was still not accustomed to speaking for long
periods. It was a skill he had never mastered, being a person
who preferred to listen than to talk. At least, be mused to
himself, he had learnt a great deal by taking this approach.
After a few minutes rest, however, he felt invigorated and
felt an urge to move on. As usual, they had covered a great
deal of ground, and John was enjoying speaking.
"We have covered most of what I want to say about
specific investments.
There are, however, a few other investments I would like
to discuss. I will choose some of the more popular
investments that I believe you should avoid, and explain why.
First, we have gold.
Gold has been used as a store of wealth since the earliest
days of civilisation. It has always been in demand for
jewellery and ornaments because of its rarity and beauty.
Gold is one of the most chemically inert metals, it does not
rust and will not react with most substances.
A bar of gold will still be a bar of gold in a thousand
years. The only other possession a human being can have
with this longevity is ownership of land, but even that is at
the mercy of changing social systems, governments and
laws.
Gold, however, remains gold. Let us now consider the
price of gold.
This is subject to two things, the same as every other
price in a market-based system. The price is subject to
supply and demand. The demand is based on the demand for
gold for jewellery, and also the demand for gold for industrial
uses.
The supply is dependant on the amount of gold produced
from mines.
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