Realistic Investor
You should consider keeping your current position in the gold and precious metals markets. You understand that while the current market conditions in the stock market and geopolitical spheres of influence are unstable, they will return to a positive position at some point. In the meanwhile, you should maintain a position in precious metals to hedge against inflation and volatility in the stocks, bond and treasuries markets.Analysis of Questions:1. Do you believe that oil
prices are moving up over the next 3 to 5 years?If you strongly
agree, then you believe that there are inflationary pressures at work in
the energy markets. Gold is an excellent hedge against rising inflation
and energy prices.2. Given the economy over the next 3 to 5
years, do you believe that the U.S. stock markets are ready for a
significant move upward? If you strongly agree, then you
believe that stocks are in a position to grow in value and possibly a
larger allocation is warranted. Gold has historically moved in the
opposite direction of the stock market.3. Do you believe
that the world is moving in the direction of peace over the next 3 to 5
years? If you strongly agree, then you believe that there is
reduced geopolitical risk. Lower risk of war, insurrections, terrorism
and violence, will not disrupt flows of oil and commerce. Gold tends to
move higher on global political disruptions.4. Do you agree
that China over the next 3 to 5 years will be growing rapidly and
consuming more energy and other natural resources? If you
strongly agree, then you believe that the China will be competing for
more resources in world markets, driving up prices globally and
increasing inflation. Gold is an excellent hedge against inflation.5.
Do you believe that the U.S. Government over the next 3 to 5 years will
pull back deficit spending and move toward fiscal responsibility?
If you strongly agree, then you believe that the Government will be
able to stabilize the economy, spending within the tax revenues
provided, resulting in solid growth of the economy and a stronger US
Dollar worldwide. Gold is a hedge against the deterioration of a
currency and generally moves in price opposite of the market value of
the currency.6. Do you believe that over the next 3 to 5
years the United States will substantially reduce the unemployment rate?
If you strongly agree, then the US is headed for a robust
economic recovery and the profits from US businesses are growing so that
hiring is increased resulting in a stronger US Dollar on world markets.
Gold is a hedge against the deterioration of a currency and generally
moves in price opposite of the market value of the currency.7.
Do you consider your investment objectives to be short term or long
term? If you have long term objectives, then you should be
influenced by the long term impacts of economic conditions and trends in
the US economy and world economies. Short term movements in your key
investments would not be as important since you intend on holding for a
longer term.8. Do you believe that the Federal Reserve will
not be able over the next 3 to 5 years to significantly reduce the
current high levels of money supply and maintain a growing economy? If
you strongly agree, then you believe that the large Money Supply is
available in the US markets to drive prices higher for goods and
services, creating increasing pressure on prices to rise. Gold is an
excellent hedge against inflation.9. Do you have the view
that the European debt crisis may turn out to be even worse than
currently reported and they will not have their problems solved in the
next 3 years? If you strongly agree, then you believe that the
Euro and the European Union face increasing challenges to keep the
currency afloat and that additional debt offering will be more difficult
to obtain. This debt crisis causes money to flow to safe investments
where the threat of default is minimized. Gold has historically been
considered a “safe haven” investment.10. Do you believe that
the United States will be able to substantially reduce the national
debt and the dependence on foreign investors over the next 3 to 5 years?
If you strongly agree, then you believe that the US economy can
grow with a lower debt burden that will reduce the drag on the economy
and provide for healthy long term growth and a rising value of the US
Dollar on world markets. Gold is a hedge against the deterioration of a
currency and generally moves in price opposite of the market value of
the currency.DISCLAIMER:This quiz is
provided by the American Precious Metals Exchange, Inc. to assist you in
relating your views on economic and world events to the historic
actions of the gold and precious metals markets as those events have
occurred. Although traditionally the gold and precious metals markets
have generally related to these world and economic events in certain
ways, the markets have not always reacted in accordance with historical
precedents and there is no assurance that the markets will react in the
future according to the historical precedents. This quiz does not
provide a complete analysis of any person’s total views of the current
markets or future markets or the historic action of the gold and
precious metals markets. This quiz is not intended to be comprehensive
analysis of any person’s interests, risks or positions or such historic
actions and there may be other factors for consideration that may be
affecting the individual and the financial marketplace. This quiz is
provided for informational purposes only and does not constitute a
recommendation by APMEX to hold, to purchase or to sell any precious
metal product. All orders, all purchases and all sales, if any, are
subject to the terms of the User Agreement and other applicable
policies.