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.