There are times in life when you can’t help but feel smug after making a correct prediction. With the world’s financial markets in turmoil, investing in metals, natural resources and currencies is far more interesting.
In the early hours of a random October’s morning, I listened as a BBC analyst tipped Gold to increase in value over the coming months as people seek more security from their investments. Simple supply and demand was used to back up the prediction: more people swapping cash for gold pushes up prices of the metal.
My own opinion was slightly different – surely, those most effected by collapsing banks and financial markets are those with the most resources tied up in this fashion. With rumours of a stock market shutdown it seemed logical that the most wealthy would dump any non-liquid assets, such as gold and other metals, in order to free up cash in the event of financial markets being shut down.
Unfortunately, my son’s Selftrade account (see here) isn’t yet active so the ‘killing’ I made by betting against the price rise was only virtual. Next time….
Posted by Adam Arnold