Ontario Community Newspapers

Stouffville Tribune (Stouffville, ON), October 23, 1993, p. 27

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weekender october 23j993i7 gold has the potential to be an attractive investment is it time to buy some gold thats what i hear as i move across the country interest rates are at 30 year lows so you cant earn much there stocks and mutual funds have pro duced above average rates of return in the last few years but how long will that last where else can you turn theres always going to be a worldwide interest in gold if s gen erally used as a safe haven for money when people worry about their ability to get it out of their country in cases of turmoil and then of course theres inflation inflation destroys the purchasing power of your money many people feel that gold is going to rise in value so they will convert some of their cash to gold so it rises in value offsetting the impact of inflation that is of course if there is high inflation in addition there will always be short term and shock type events that attract investors to gold from time to time gold should always be looked on as a long term investment for example in the summer gold was rising in price in the fall it fell those who purchased gold coins and wafers found to their dismay when they went to sell that the costs of the transactions sometimes including sales taxes often meant that gold prices had to escalate some 50 an ounce before they made any profit ifs not like a term deposit canada savings bond stock or mutual fund if you want to buy gold there are other routes where the costs arent always as high investors buy gold as a safe haven in case of a war do you see any signs of a major war on the horizon most of the world couldnt afford one then we have inflation theres none in canada the us economy is starting to improve so you have to believe they will create some inflation in coming years but how much germany has shown enough success in lowering their inflation rates that it is now cutting interest rates japan recently slashed its rates and seems poised to cut taxes to stimulate the economy there is a case to be made then for some increase in inflation around the world normally that would be good news for gold prices then we have those extras we mentioned above the soviet union used to stock large gold reserves but theyve been largely unloaded the canadian government recently announced that it had unloaded tonnes of its gold and other coun tries have been doing the same this supply was obviously snapped up in the marketplace without much impact some will argue it was sold while prices were rising as a result there was no impact at all others would suggest it was sold in the last few months and helped golds early fall decline either way the impact was not great as gold has shown modest appreciation recently then we have an ace card chinas huge population can now buy gold will they its probable that some will how many we dont know but if it happens it could happen in a big way however when you think about it as the economy improves there is bound to be a larger demand for jewelry around the world i suspect then that there is a pretty good case to be made for owning some gold or gold based investments if you are going to buy gold look at bullion or preferably shares of gold producing companies or better yet mutual funds that buy gold or gold shares the rationale is simple if you buy gold you prosper only if it appreciates in value if you buy gold shares or mutual funds you win if prices rise but you also earn divi dends or other income while you h your money brian costello are waiting for a rise in bullion prices companies or mutual funds will benefit from price appreciation but they will also offer a regular income when there is no apprecia tion you can also choose the com modities markets where you buy huge amounts of gold in the futures markets with only a small down- payment if prices rise you make big profits if they fall you lose big these markets are only for those who sleep well at night as the risk is great however you can make a fast fortune and the royal bank of canada has introduced a gold war rant it allows you to effectively buy an option on that will pay off if gold rises in value in the next two years if you decide to buy some gold relat ed investments remember that ifs a specialty market that is some not all of your money should be aimed there dr daryl mai md is pleased to announce the opening of his family practice in association with dr chantal gupta bsc md ccfp dr walter chrystoja md ccfp em dr arif dharamshi md telephone 4777741 bridle trail medical centre 9249 kennedy rd suite 102 unionville mon fri 9 am 8 pm saturday 9 am 2 pm 16toave i u 0 flea market farmers market 0 a place where the whole family can have real m fun free face open every sat sun 10 am 6 pm painting finch ave u q z 3 sheppardave 1 gotttfft mstaik hwy401 limited space available before xmas booth rental 3219701 same plaza bigger location next to kids world with any mattress purchase crasher brass or white with porcelain headboard only with mattress 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