With the present economy is gold a good investment?

1 Answer

Answer :

I don't think so. the price of gold has wavered over the past few weeks and has come nowhere close to it's previous high. that being said, if you are interested in a long term investment, then I would suggest gold, we will eventually run out of gold in the earth and then all gold will skyrocket in price. http://www.nasdaq.com/asp/SummaryQuote.asp?symbol=GOLD&selected=GOLD

Related questions

Description : A mixed economy refers to an economic system where - (1) The economy functions with foreign collaboration (2) Only t he private sector operates under government control (3) Both the government and the private sectors operate sectors operate simultaneously (4) No foreign investment is allowed

Last Answer : (3) Both the government and the private sectors operate sectors operate simultaneously Explanation: Mixed economy is an economic system in which both the state and private sector direct the ... and that the government wields indirect influence over the economy through fiscal arid monetary policies.

Description : An economy is in equilibrium when - (1) planned consumption exceeds planned saving (2) planned consumption exceeds planned investment (3) intended saving equals intended investment (4) intended investment exceeds intended savings

Last Answer : (3) intended saving equals intended investment Explanation: In economics, economic equilibrium is a state of the world where economic forces are balanced and in the absence of external influences ... and intended investment. An economy is in equilibrium when total savings equal total investment.

Description : The existence of a Parallel Economy or Black Money - (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment

Last Answer : (2) makes the monetary policies less effective Explanation: In India, Black money refers to funds earned on the black market, on which income and other taxes has not been paid. Black money ... a policy. So, in nutshell, the existence of parallel economy erodes the effectiveness of monetary policies.

Description : The existence of a parallel economy or Black Money - (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment

Last Answer : (2) makes the monetary policies less effective Explanation: The existence of black money is injurious not just for tax revenues. It distorts the systematic resource allocation process and upsets the ... . So the existence of black money erodes the very rationale of growth behind monetary policies.

Description : Multiplier process in economic theory is conventionally taken to mean: (1) the manner in which prices increase (2) the manner in which banks create credit (3) income of an economy grows on account of an initial investment (4) the manner in which government expenditure increases

Last Answer : (3) income of an economy grows on account of an initial investment Explanation: In economics, a multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in ... of the U.S. money supply, and MO as a measure of the U.S. monetary base.

Description : Multiple effect evaporation accounts for (A) Steam economy (B) Lower operating costs (C) Investment economy (D) None of these

Last Answer : (A) Steam economy

Description : What is Gross National Product: A. The total output of goods and services produced by the country’s economy B. The total domestic and foreign output claimed by residents of the country C. The sum of gross domestic product and investment

Last Answer : B. The total domestic and foreign output claimed by residents of the country

Description : During the downturn portion of a business cycle, the economy is characterized by (a) rising unemployment and rising investment (b) falling unemployment and falling output (c) rising profits and falling wages (d) falling output and rising unemployment

Last Answer : (d) falling output and rising unemployment 

Description :  In free economy the decision about investment, saving and consumption are decided by (a) Price mechanism ; (b) Central bank ;(c) Planning Commission ;(d) Finance budget 

Last Answer : (a) Price mechanism

Description : A mixed economy refers to an economic system where (1) The economy functions with foreign collaboration (2) Only the private sector operates under government control (3) Both the government and the private sectors operate sectors operate simultaneously (4) No foreign investment is allowed

Last Answer : Both the government and the private sectors operate sectors operate simultaneously

Description : An economy is in equili-brium when (1) planned consumption exceeds planned saving (2) planned consumption exceeds planned investment (3) intended investment equals intended investment (4) intended investment exceeds intended savings

Last Answer : intended investment equals intended investment

Description : The existence of a Parallel Economy or Black Money (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment

Last Answer : makes the monetary policies less effective

Description : Multiplier process in economic theory is conventionally taken to mean : (1) the manner in which prices increase (2) the manner in which banks create credit (3) income of an economy grows on account of an initial investment (4) the manner in which government expenditure increases

Last Answer : income of an economy grows on account of an initial investment 

Description : Other than the gold standard what non fiat currency is a good investment?

Last Answer : It sounds like you are asking what good barter items might be. It would have to be something that lasts a long time or something that can be created continuously, something physical, and something that ... system is kicking in, growing your own and trading it for things you need is a win-win.

Description : Are gold coins / medals a good investment?

Last Answer : Buying actual gold is one of the best investments, raw gold will be cheaper than specific coinds or medals, and golds price pretty much ges up only.

Description : In terms on an investment, how reliable exactly is gold bullion? (and other metals)?

Last Answer : It’s OK assuming the UK government isn’t doing anything stupid like dump tons of the stiff on to the market and announcing that they were going to do it resulting in the price plummeting.

Description : Does it make sense to buy gold coins as an investment?

Last Answer : It depends on how long you want to remain invested. Over a long period of time gold always goes up. But right now the prices are so high that it is possible for them to go down in the short term.

Description : Do people who buy gold coins make a good investment?

Last Answer : Currently Gold is a good investment. The price does fluctuate and there is no way to determine if prices will remain high.

Description : Are brass bracelets a good investment in metals like gold ones are?

Last Answer : Yes it is because metals are not that expensive.

Description : Is gold investment safe?

Last Answer : Gold is very stable but how good an investment can vary. For example the amount of gold needed to buy a car in 1950 is the same as would be needed to buy a car now. On the other hand if the ... will be worth less dollars later. It will only be worth more the the value of the dollar keeps going down.

Description : Which one of the following items is not included in the current account of India's Balance of Payments? (1) Short-term commercial borrowings (2) Non-monetary gold movements (3) Investment income (4) Transfer payments

Last Answer : (2) Non-monetary gold movements Explanation: Balance of payments (BoP) accounts are an accounting record of all monetary transactions between a country and the rest of the world. These ... factor income (earnings on foreign investments minus payments made to foreign investors) and cash transfers.

Description : Which one of the following items is not included in the current account of India’s Balance of Payments ? (1) Short-term commercial borrowings (2) Non-monetary gold movements (3) Investment income (4) Transfer payments

Last Answer : Non-monetary gold movements

Description : What would happen, to the world economy, if all stored physical gold, and most other precious metals, were suddenly reported to have vanished with no trace, while some still exist on paper?

Last Answer : They would find another resource that that approximated the beauty, nobility, and malleability of gold. It would not be the same. But if you can not have plan A, you have to take plan B.

Description : Can the economy be strengthened by issuing Treasury Certificates based on work rather than gold?

Last Answer : Our money isn’t even backed by gold anymore. Its value comes from a promise from the government.

Description : What would be the advantages and disadvantages if President Obama was to issue gold or silver backed certificates instead of injecting trillions into the economy?

Last Answer : There is not enough gold or silver available unless their value was extremely inflated.

Description : Present value of future investment is calculated by

Last Answer : Ans. Discounting

Description : The internal rate of return - (1) must be less than the interest rate if the firm is to in-vest. (2) makes the present value of profits equal to the present value of costs. (3) falls as the annual yield of an investment rises. (4) is equal to the market interest rate for all the firm's in-vestment.

Last Answer : (3) falls as the annual yield of an investment rises. Explanation: The internal rate of return on an investment or project is the "annualized effective compounded re-turn rate" or discount rate ... the investment equals the net present value of the benefits (positive cash flows) of the investment.

Description : Net Present Value of a machine is  A. PV of cash inflows less cost of investment  B. PV of cash inflows ÷ cost of investment  C. PV of net profit after tax less cost of investment  D.PV of cash inflows less average cost of investment

Last Answer : A. PV of cash inflows less cost of investment

Description : An investment should be accepted if its Net Present Value (NPV) is (A) 0 (B) 1 (C) positive (D) negative

Last Answer : C) positive

Description : _________ method for profitability evaluation of a project does not account for investment cost due to land. (A) Net present worth (B) Pay out period (C) Discounted cash flow (D) Rate of return on investment

Last Answer : (B) Pay out period

Description : With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project (A) Decreases (B) Increases (C) Increases linearly (D) Remain constant

Last Answer : (A) Decreases

Description : An investment pays Rs.300 annually for five years, with the first payment occurring today. The present value of the investment discounted at a 4% annual rate is approximately __________. a) Rs.1336 b) Rs.1389 c) Rs.1625 d) Rs.1925

Last Answer : b) Rs.1389

Description : Discounted cash flow criteria for investment appraisal does not include A. Not present value B. Benefit cost ratio C. Accounting rate of return D. Internal rate of return

Last Answer : B. Benefit cost ratio

Description : The internal rate of return (1) must be less than the interest rate if the firm is to invest. (2) makes the present value of profits equal to the present value of costs. (3) falls as the annual yield of an investment rises. (4) is equal to the market interest rate for all the firm’s investment. 

Last Answer : falls as the annual yield of an investment rises.