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Stock market investing can be a great way to get rich. But sometimes, things go poorly. In this video, I break down my worst investment mistakes so hopefully you can avoid them and learn how to invest like a pro.
My goal is for you to learn some lessons and NOT repeat the same mistakes I made!
I began stock market investing when I was a teenager. And back in 2010, I was really getting into investing. I had just purchased a lot of Apple stock and was already beginning to see a nice return. Check out Apple stock market investing video here: https://youtu.be/YA8Q6EHdIDU
So I did research on how to pick stocks. Since I had relatively little money, I thought to myself that I might as well try and get rich!
In reading the Financial Times and Wall Street Journal, I came across a stock market idea that I loved. See, back in 2010, the financial world was in chaos. We had just gone through a massive stock market correction and were just coming off the heals of the worst recession since the Great Depression.
I thought, then, that safe haven assets would outperform other stocks and assets.
Gold was a safe store of wealth and a hedge against inflation. Gold has never been worth zero, and gold has always had some monetary worth to societies everywhere.
Also, because the Federal Reserve was printing so much money, I thought we would have high inflation going forward.
So did I buy gold? Not quite. I was TOO SMART for that… or so I thought.
I wanted to buy a gold mining company. This was basically a way to potentially leverage my bet on gold.
Gold mining companies make more income when the price of gold rises, and they have lower expenses when the price of oil falls.
Well, the price of oil was falling, and I thought the price of gold was going to skyrocket. Double win.
But most gold mining companies have operations in unstable countries.
So in comes Agnico Eagle Mines, also known by the stock ticker AEM.
AEM was based in Canada and its operations were only in North America. So there was close to zero government risk to their operations.
So I made $5,000 of purchases of AEM and I bought it around $55-$60 per share. The price quickly went to $77 per share.
But then, one morning, I woke up, logged into my Merrill Lynch brokerage account, and saw the terrible, terrible news.
One of AEM’s mines had flooded and they were shutting it down.
And just like that, I lost 20% of my original investment. Now, AEM would no longer be able to extract any gold from their mine, and they would be responsible for the costs of remediation.
I learned a great stock market lesson: Diversification. That is why I invest primarily in broad based, low cost passive index funds. I get to own everything.
If i would have invested in a simple S&P500 index fund at that time, I would have made over double digit returns since then.
My second biggest investing mistake is not opening a Roth IRA earlier. I began working some when I was a teenager, and also began stock marketing investing as a teenager.
I should have opened a Roth IRA earlier, that way I would have had way more compounded growth and tax free income!
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How Did Gold Mining Stocks Do During the Great Depression, My Worst Investment Mistakes.
Investing In Gold For A Protected Future
These experts are making fortunes (or they definitely give the impression they are) but I’m not. The best gold stocks will rise tremendously over the next couple of years. It is the strange and unidentified world of penny mining stocks.
My Worst Investment Mistakes, Enjoy most shared reviews about How Did Gold Mining Stocks Do During the Great Depression.
Buy One Kilo Gold Bars
Purchasing gold is truly a financially rewarding and clever way to invest. ETF shares are normally purchased in whole shares-round off any part within the entire calculation. There are several ways of purchasing gold.
Gold rates today are hovering in the area of $1,200 per troy ounce. Some analyst are predicting gold rates to shoot up to $2,500 per ounce in the next six to 8 months. Some are even predicting gold rates as high as $8,000 per ounce. Whatever, there is no doubt that gold remains in an unmatched bull market that may last as long as a decade.
Purchasing VT is the lowest risk to my future, meaning the lowest risk of not attaining my return goal. The lowest risk of missing out on the market returns. The highest probability of success. Let’s say you decide to place all your capital in a product producer ETF or a Gold ETF – what happens if this extremely narrow slice of the market does nothing? What if it isn’t its time to shine?
Doesn’t that make you wonder? That is inflation at work. Gold is inflation evidence. Man has actually had an ongoing love affair with gold because time started. Every culture has actually valued it.
Now, if you buy gold today, you will be paying around $1,200 per ounce. You can get an 100% return on your investment if the rates double by the end of 2010. Not a bad concept! How to set about purchasing gold? You can straight buy the yellow metal by physically buying gold bullions and coins. You can trade gold in the spot market, you can trade gold futures, you can buy Gold Mining Stocks. There are numerous alternatives.
Homestake Mining Company saw successful company throughout this period of growth. Their stocks were one of the highest in the world. Where they cost far less than a hundred dollars per share, their stocks started being valued at almost four hundred dollars by 1933. Their dividends were also terrific. Where dividends were less than ten dollars at the beginning of the Great Anxiety, by 1935 it was at fifty six dollars. Gold financiers were safe and secure and extremely delighted throughout this time of economic difficulty.
Know that timing concerns will exist – numerous weekly and month-to-month indicators along with historical patterns can help you in your investing. Making the best judgment can decide as to how well your Gold Investment will carry out.
Unallocated account: Specific bars and coins are not assigned to a financier or account holder. The bank rents the gold out. The gold is used for trading. Compared to the assigned account, the benefit of such an account is that the investor does not require to pay for the storage. As the gold is used for trading by the bank, unallocated accounts handle bulk of gold. The account holders are usually big financiers who can buy big amounts of gold or institutional financiers.
We are all concerned about our economy, and even Mr. George Soros has actually begun to invest heavily on gold. He must know something that we do not. 9 times out of 10 he has actually been best about his financial investments. So, is this the way to go? I definitely think so. Can we enter into this investment securely? Obviously, with the help of this gold buying book, you can keep your investment in the safety zone. Fantastic read and effective details.
Currently, the euro, dollar and yen are the world’s significant currencies. Gold ETF is buying Gold in Demat Format. Financial investment in the gold deserves consideration, and it’s never ever too late for profits.
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