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Stock Market Analysis and
Personal Finance
Mr. Bernstein
Precious Metals, Gems and
Collectibles, pp 361-369
December 2016
Stock Market Analysis
& Personal Finance
Mr. Bernstein
Gold and other precious metals
Often purchased as a hedge against inflation
Gold is often considered a currency which is not
affiliated with any particular country or
government
Gold often rises when people believe war or other
political uncertainties are on the horizon
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Gold, 1994-present
Many believe that Gold will rise over long periods of time
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Gold and the USD, 1981-present
A negative correlation: Gold and the US Dollar often move in opposite trends
…does this increase or decrease risk?
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Stock Market Analysis
& Personal Finance
Mr. Bernstein
How can one invest in Gold or other metals?
Stocks whose price moves with the metal (ie gold
mining companies)
Gold bullion
Coins or jewelry
ETFs
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Stock Market Analysis
& Personal Finance
Mr. Bernstein
Other Precious Metals
Silver, Platinum, Palladium
May have industrial uses
which can affect price
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Stock Market Analysis
& Personal Finance
Mr. Bernstein
Precious Gems
Diamonds, Sapphires, Rubies, Emeralds
Wear as jewelry or store in safe deposit box
Get stone certified by
independent laboratory*
Thought to be inflation hedge
Can be illiquid, with high transaction costs
*- Note ratings can be inconsistent and are not guaranteed to relate to market value
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Stock Market Analysis
& Personal Finance
Mr. Bernstein
Precious Gems
Diamonds, Sapphires, Rubies, Emeralds
Wear as jewelry or store in safe deposit box
Get stone certified by independent laboratory*
Thought to be inflation hedge
Can be illiquid, with high transaction costs
*- Note ratings can be inconsistent and are not guaranteed to relate to market value
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Stock Market Analysis
& Personal Finance
Mr. Bernstein
Collectibles
Examples: Rare coins, art, antiques, stamps, rare
books, sports memorabilia, rugs, ceramics,
guns…cars?...wine?
The internet has made buying, selling and following
collectibles efficient and convenient
Quality can be difficult to determine online
Learn all you can before buying and work only with
reputable dealers or auction sites
Beware of fraud!
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