|»5 Minute Wrap Up by Equitymaster|
On This Day - 26 SEPTEMBER 2009
Forget Gold, buy this instead...
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There could be some merit in his argument. After all, in addition to being a storehouse of wealth just as gold, silver's growing use in industries such as superconductors and microcircuits, is leading to more and more demand being created while the supply remains constrained. Hence, this could lead to prices of silver growing at a faster pace than that of gold in the future, making it a better investment than gold.
However, this is not the only asset class that Kiyosaki is bullish on. He also likes real estate as unlike stocks where investors get no leverage, buying real estate does involve debt and hence, even a small rise in real estate values could lead to a significant jump in the return that an investor earns from it. However, as Kiyosaki rightly points out, if you are playing a game of debt, you've got to be a lot smarter than the average bear out there.
However, people staying in Asia especially in countries of China and India have little or no reason to fear as he believes that these countries are living in exciting economic times and these regions could see continued prosperity for years to come. Of course, as he very rightly pointed out, Asians should learn to grow from within the region rather than through exports to sick countries.
However, some countries such as France wanted even stricter rules such as introduction of specific limits on the pay structures. It was further stated that awards must also be curbed if they are inconsistent with the maintenance of a sound capital base and that regulators should be allowed to modify the compensation practices of key firms. It was also proposed that bank should increase the quality and quantity of capital they hold by the end of 2012. While these seem steps in the right direction, we would like to wait and watch how these translate on the ground given the strong banking lobbies.
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