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What Can You Do With Your Extra Money?

What Can You Do With Your Extra Money?

If you put money in the bank for that little yearly return (2%) and feel safe. Think again, your money at those little interest rates will give you less purchasing power in 10 or 20 years time. What do you think the banks do with your money? They invest in high return stocks and other investment vehicles with unusually high returns. If there are no returns, so what. There is no accountability. The world governments will ensure that banks will always operate, no matter what. If they don't operate society will change in unthinkable, uncivil ways.

The question is, what could you invest in with your extra money? Well, if you think banks and financial institutions that are looking for their own profits are a good way to go, you could get into real estate and hope for favorable returns in the future (when you sell it).

Problem #1 with real estate that's not your principle residence, is collecting rent, property taxes and renovating (to keep functionality and visual appeal). Ask yourself why does a house that ages, needs renovating and so on, become a little more valuable(sometimes)? That's right, because all the banks say so. Why does your vehicle lose value daily?

Problem #2 they put a value on real estate because they own most of it. When there is economic trouble, that value decreases for ALL real estate, comparably ( your owned home vs the banks homes). When you sell you have to wait for favorable market conditions and hope you get the money you want.

Problem #3 if you wanted to move from your country for what ever reason, you could not just carry your real estate with you.

Can you put cash under your mattress and hope for it to build in value? NO. For example, Zimbabwe had a 10 trillion dollar bill, and now its useless.

If you like to buy metals to preserve wealth you may be on the right road (mining road). In the extraction of metals from rocks, machinery needs fuel (which costs money). There are many types of machinery used in mines. Digging or drilling rock, transporting rock, separating rock and plenty of man power. Only now that metal is separated from rock it still has to be transported with trucks and boats that need fuel. This machinery loses value also, which costs the companies alot of money. This gives metal a "real world value."

You can take your metal with you if you decide to move unlike real estate. This to me is very appealing.

Is gold what I am telling you could preserve wealth? I don't think so. Back to the beginning of my story on banks, they, including the uber rich own most of it. Have you heard of the London Fix where 5 bankers, who probably in one way or another own tonnes of gold, set the price of gold? http://www.kitco.com/london.fix.article.html , that is in my opinion strange and crazy. Gold is not consumed, it is stored for people or banks to compare wealth from one another. What happened to the supply and demand scenario? All gold is stored and not consumed. In my opinion a metal that is actually consumed is a lot more valuable. And when a metal that is stored for wealth can be consumed makes it a lot more valuable.

I will finish this story and say this is where Investment Grade Molybdenum comes into play. I have an article called Investment Grade Molybdenum. As always do your own research.

Carlo Biancardi (London, Ontario) May 2011 What Can You Do With Your Extra Money?If you put money in the bank for that little yearly return (2%) and feel safe. Think again, your money at those little interest rates will give you less purchasing power in 10 or 20 years time. What do you think the banks do with your money? They invest in high return stocks and other investment vehicles with unusually high returns. If there are no returns, so what. There is no accountability. The world governments will ensure that banks will always operate, no matter what. If they don't operate society will change in unthinkable, uncivil ways.The question is, what could you invest in with your extra money? Well if you think banks and financial institutions that are looking for their own profits are a good way to go, you could get into real estate and hope for favorable returns in the future (when you sell it). Problem #1 with real estate that's not your principle residence, is collecting rent, property taxes and renovating (to keep functionality and visual appeal). Ask yourself why does a house that ages, needs renovating and so on, become a little more valuable(sometimes)? That's right, because all the banks say so, Eg. your vehicle loses value daily. Problem #2 they put a value on real estate because they own most of it. When there is economic trouble, that value decreases for ALL real estate, comparably ( your owned home vs the banks homes). When you sell you have to wait for favorable market conditions and hope you get the money you want. Problem #3 if you wanted to move from your country for what ever reason, you could not just carry your real estate with you.Can you put cash under your mattress and hope for it to build in value? NO. For example, Zimbabwe had a 10 trillion dollar bill, and now its useless.If you like to buy metals to preserve wealth you may be on the right road (mining road). In the extraction of metals from rocks, machinery needs fuel (which costs money). There are many types of machinery used in mines. Digging or drilling rock, transporting rock, separating rock and plenty of man power. Only now that metal is separated from rock it still has to be transported with trucks and boats that need fuel. This machinery loses value also, which costs the companies alot of money. This gives metal a "real world value." You can take your metal with you if you decide to move unlike real estate. This to me is very appealing. You would want a metal that is not very abundant on earth to keep this amount reasonable. Is gold what I am telling you could preserve wealth? I don't think so. Back to the beginning of my story on banks, they, including the uber rich own most of it. Have you heard of the London Fix where 5 bankers meet twice daily to set gold prices? They probably in one way or another own tonnes of gold. Here is a link http://www.kitco.com/london.fix.article.html , that is in my opinion strange and crazy. Gold is not consumed, it is stored for people or banks to compare wealth from one another. What happened to the supply and demand scenario? All gold is stored and not consumed. In my opinion a metal that is actually consumed is a lot more valuable. And when a metal that is stored for wealth can be consumed, makes it a lot more valuable. I will finish this story and say this is where Investment Grade Molybdenum comes into play. I have an article called Investment Grade Molybdenum. As always do your own research. Carlo Biancardi (London, Ontario) May 2011