fwd: Where To Invest in Times of Earthquake, Riots and Tsunami?

I went to a talk on silver & gold last night, it is very informative and educational. The company involves in network marketing of selling gold & silver. For me, I am not interested to joined the business yet. But I am certainly interested to invest in its product, which are gold and especially silver.

This is one of the article from the speaker yesterday, Jonathan Quek. notes : Article below is totally based on the research and professionalism of the author. Read it and invest at your own risk, as we know economy is always volatile
(Article Source: Jonathan Quek – Asia’s Youngest Wealth Coach)

We are living in a world where change is constant. The problem is the change has been rather extraordinary today.

It’s only 3 months this year and we have already witnessed:

1) Massive Earthquake in Christchurch, New Zealand

Manageable monetary damage and around 200 lives were lost

2) Tsunami in Northeastern Japan

The worst national disaster wiped out towns and villages on the coast with estimated loss of lives likely to exceed 10,000 people. Japan has been in a deflationary cycle for the past 15 years pledged rescue package of 15 Trilliion Yen to stabilize it’s financial system.

3) Riots around the World

The situation in Libya is still unresolved as President Muammar Gadaffi continues to defy international pressues to step down. Riots in Libya, the 8th largest oil supply in the world, pushes oil price to US$100 per barrel.
The biggest question most people have in mind right now is this…

Where to Put Your Money in such Times of Uncertainty?

1) Bonds?

Bonds are basically I.O.U issued by companies or governments to raise funds. With the current unresolved European Debt Crisis where the PIIGS are still facing trouble, the EU continue to debate about how to strengthen their bailout funds.

PIIGS basically means Portugal, Italy, Ireland, Greece and Spain.

U.S and UK are not much brighter as well… Both countries are still running on high budget deficits as a result of trying to rise their economies out of the 2008 financial crisis.

Final Verdict: UNATTRACTIVE!

2) Stocks?

World stocks tumbled over concerns from the Japan’s devastating earthquake and tsunami and as official grappled with a nuclear crisis. The U.S and European stocks too big hits over fears that what’s happening in Japan could derail as much anticipated global recovery. The big question is… What stocks should we invest in today’s market? What is in everyone’s mind is simple… What appears cheap today may be even cheaper tomorrow! As one fund manager puts it “If you shut down Japan, you have a global recession”. No country including U.S will be speared.

VERDICT: UNCERTAIN!

3) Gold & Silver

When Libya tension flared about 2 weeks ago, the price of Gold & Silver rallied as investors seek out the precious metal as a possible safe haven. As uncertainty over the global recovery looms larger with the massive losses in Japan, the shine of the yellow metal continues to be bright!

Gold – it is possible for gold to test $1500 as Japan losses gets tallied up, and the massive rebuilding starts to take place. The potential of a swift global recovery is looking slimmer day by day…

Silver – Silver hit a 31 year high last week on short term supply tightness and increased physical demand ($36.74 per oz). With the Gold Silver Ratio at 40, silver is likely to outperform gold in the short term as a hedge against increasing global uncertainty.

VERDICT: BUY