Today I was researching and met someone. He knew a lot about the markets and he introduced me to a new way of seeing it. He showed me how the commodity markets work and how you can truly tie in current events into your investments. I learned that the reason why gold is at a premium is because everyone is buying it and there isn't enough money to go around. I also learned that our money isn't backed by gold or silver.
This is a way of trading by looking at the market from a whole nother perspective. Instead of buying and selling stocks, he traded goods like wheat, silver, gold, and oil. This way of trading might not have the same profits that can be achieved by trading stocks but it is a safer way of trading. While these stocks can also present you with losses, you can be sure that they will almost surely never go bankrupt.
What he said also got me thinking, what would happen if inflation keeps going up, and I more winnings, but they were worth less. Would investing in commodities be a better alternative than investing in stocks? I guess that this will be a question for another day.
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