Tuesday, April 19, 2011

All Shook Up

Gold in New Zealand dollars: $1897.48 per oz
Previous all time high: $1955.10 per oz

Silver in New Zealand dollars: $54.87 per oz
Previous all time high: $48.58
per oz

Gold up, oil down, share markets down, bonds down, S&P threaten a credit rating down-grade of the US dollar, US dollar down, NZ dollar down, inflation up, euro down, debt mountains continue to rise...

It is all rather confusing and weird.

One commentator recently said that this isn't a market that you would want to trade in, or let anyone else trade in.

That's one reason why it may be worthwhile to restrict the amount of money you give to others to invest.

Investment managers often put funds in a diverse range of areas; property, shares, cash deposits. Someone once said that the reason they do this is they are hedging their bets against their own ignorance.

In these days of unrest and market manipualtion at the highest levels, how can even seasoned managers know what will happen next?

But if we take more personal responsibility for our hard earned, what would be the result? Would we be better off? Perhaps? Likely?

This is one reason to not sign up for the New Zealand Kiwi Saver scheme. Do those managers really have your best interests at heart? Remember, they make a commission, win or lose. And when you want those funds in 20 or 30 years, will they even be there?

If you take responsibility for your own investments, then you are more likely to have better control and more likely to do better due diligence on those investments. You earned it, you worked hard, why not trust yourself to invest wisely. You may actually win more than you lose.

A prudent approach based on sound money and cash may well be the answer today. But don't take my word for it.

It's your money, your wealth.

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