Investing properly or preserving a capital of 1,000,000 USD - page 6
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I have been investing for 9 years
1 Real estateinvestment 60%
2 Bank deposit 10%
3Precious metals 30%
I have been investing for 9 years
1 Real estateinvestment 60%
2 Bank deposit 10%
3Precious metals 30%
Well done! I am truly happy for you.
I hope you do it successfully!
papaklass:
Well done! I am truly happy for you.
I hope you are doing it successfully!
Good advice. Thank you!
paper metals?
Paper metals are another very clever scam... ...scam from our banks. I recall a cautionary tale in this regard. In 2009 a friend of mine asked me for advice on where to invest his money. That year he was doing very well and was able to put away a considerable sum. He was prepared for a certain amount of risk. I thought about it and devised a "personal investment plan" for him. After analyzing assets available for investment, I came to a conclusion that investing in gold would be potentially profitable, while risks associated with a sudden collapse were not as high for gold as for other assets, which was the case in 2008. The gist of my plan was as follows: I suggested him to open a trading account with a Russian broker like Otkritie and to buy gold futures, so that the total value of the contracts would equal 100% of his invested amount. Thus it would turn out that he would have bought gold with a leverage of 1:1, which is equivalent to investing all of his funds in a physical asset. Since the gold futures contract is a highly margined contract, this would actually allow only a portion of the funds to be used to buy gold, which would go towards the collateral requirements. Plus, it was also necessary to determine the cap on the level of loss that the "investor" was willing to bear. Knowing the margin of the position (1:1) and the worst gold price the investor could bear, such a calculation becomes trivial. Thus, cash equal to the amount of collateral requirements and risk capital would be transferred to the brokerage account. The rest and most of the funds would be deposited in a risk-free bank deposit, the interest rates on which, incidentally, were very high at that time. So the "investor" would get a balanced and moderately risky portfolio, which allowed earning much more than a bank deposit.
But then things took a turn for the worse. My friend, who knew the unreliability of DCs, thought that the rest of the RF brokers were the same. Despite all my assurances he was afraid to deal with them, however he listened to my advice to invest in gold. But where to buy this very gold? - That is the question. After much deliberation, he came up with nothing better than to open a metal account with Sberbank of Russia (what with its reliability being guaranteed by the government:). The essence of a metal account is that the bank creates a kind of virtual asset, let's call it "gold", and offers to buy it for its clients. If the client buys the asset from the bank, he can sell it back. The buy and sell price is set by the bank. There is a very severe spread between the two prices. The spread is so severe that it makes investing for less than six months questionable. The "asset" itself (and that's the best part) has very little correlation with the spot price of gold. A friend of mine has been observing the spot price trend and the price trend of his "gold" for six months, and during this time he has become a great professional in the field of correlations:) He noticed that while the price of gold futures was rising, the price of his gold was stagnating. And when the price of gold dipped slightly from its next global high, the brutal spread over its paper gold became even wider. It ended sadly, after half a year my friend was fed up of losing his nerve every time he saw another gold spike upwards, and decided to close his metal account. The result of his investment was a tangible loss, which was mainly due to the notorious spread. The price itself, if I recall correctly, was slightly below his entry price. At the same time, spot and futures gold was still moving upwards.
For a long time, he took offense at me and reproached me for my advice, which caused him a loss instead of profit. He had not realised that it was not really my advice that had caused him a loss, but the bank that he was using. The bank had... sold him a well-thought-out financial trap under the guise of gold. Because it is the bank, not the market, which determines the price of their paper gold, and because it is the bank which sets the spread between the buy and sell price. By controlling the price and the spread, it is virtually guaranteed that the bank will take coupons from the defrauded depositors, which is what banks do to this day.
p.s. Buying physical gold in the form of coins or works of art is another cleverly constructed system of rip-offs from banks/jewelry shops/lombards. In reality, nobody needs gold but you. This is immediately understood by investors, who, under plausible pretexts, are sold The investors who have been sold a gold coin or a necklace of some kind understand this. Try to come back the next day with the gold chain to the shop that sold it to you. As a rule, there is a mini pawnshop which will be glad to buy the necklace back for 20% of its original value, and the remaining 80% you will have to pay again (note, you, not them), to pay the interest which will take from you for the right to buy the thing back and these interests will be very high.
p.s.s. The moral of this fable is: if someone finds something, someone loses it. If you find your transaction with a bank/ pawnshop/jewelry store profitable, think again about who the counterparty to your transaction is and why they are doing it with you.
Was there a floating spread?
Reminds me of a ship's captain commanding his Titanic remotely, navigating over land.