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Thursday, May 20, 2010

Buy Gold Bullion

If I have the money, I will surely buy gold bullion as a form of investment to hedge against inflation which is at about 4% per year. Keeping money in the Fixed Deposits is not enough to counter inflation since the rate is only a meager 2.5%. Using the rule of 72, your money will decrease to half in 18 years using 4% rate by dividing 72 to 4. So, $1 million saved now will become $500,000 in 18 years time assuming the inflation rate is 4%. Hence buying gold and property at the right place and time will offset this reduction caused by inflation. You might also want to consider keeping blue chip stocks that pays good dividends every time consistently.

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