What is the difference between a loving mirror and safe haven? A safe haven is very simply the business version of a loving mirror. A loving mirror can be a person in your life, just your personal life, for example your spouse, your significant other, your mom, your dad, your friend, somebody who's not involved in business with you. Just, you talk about things that are not business related to that loving mirror.
The safe haven is a loving mirror who keeps you accountable to the demands of business. A safe haven is a loving mirror, might want to write that down, a safe haven is a loving mirror who keeps you accountable to the demands of business because here is the paradox. We human beings perform best in an environment of unconditional support when we're being supported for who we are, not when we have to do something that we're not.
That's on one hand. However business is conditional. You must do things to get the thing called money. As far as I have observed $20 bills do not just go walking down the street by themselves, knock on your door, and say hey can I come in. This generally doesn't happen. If it does I want to move to where you're living, because so far what I have observed is we have to do something.
We have to provide value to people and then they give us the thing called money, which enables us to do things that we want to do, where we give the thing called money for things that we value, and there it goes forever and ever.
You see that's all that money is, that's all that work is. We provide value for human beings who give us the thing called money, and then we can do the things that we want to do, that's all it is. What a safe haven does then is they don't let you off the hook with the demands of business. Remember what I talked about; work and business is conditional. That's the condition you've got to do something you have to provide value to people that's the condition, that's it.
Whatever you do, and I don't care what you do, I don't care if you're flipping burgers at McDonalds, you're providing value to a set of human beings. If you're the president you're providing value, if you're the president of Microsoft or whatever, the janitor, it doesn't matter, you're providing value. There's no job on earth you can do that doesn't provide value to a, set of human beings. That's the only way that you get the thing called money.
Safe Haven For Cats
As we know, in 1979 the sharp gold rally to its previous record high of $850 saw a price correction which moved just as quickly as the rise itself. Back then the price of gold fell almost 50% in 2 years.
Talking to a number of spread betting companies recently I found out that despite gold hitting an all-time high of $1,030 in March and steadily falling since then (albeit it with large daily fluctuations) many clients have remained positive about the price of gold. The $300 dollar fall would certainly have been a painful fall for the bulls. However perhaps those investors knew there were more economic woes around the corner and that gold would again become a safe haven. Whatever their reasoning for remaining bullish about the price of gold the September 2008 banking crisis delivered what they were looking for.
On 18 September gold had its biggest ever one day increase, it shot up $90.
Rumours of a huge failure somewhere in the States fuelled the move as the dash for safety gathered pace throughout the day. In general, a shift of that proportion is an indication that something has gone wrong somewhere and investors (unable to pinpoint the source) run for the theoretical safety of the yellow metal.
Since then it has not been plain sailing, as Simon Denham of Financial Spreads recently said ?Commodity markets are being perverse in the extreme with huge moves on an almost daily basis across the board. The smallest trading range session in Gold over the past two weeks has been some $20 with over $30 being the norm. This reflects a price variation of 3% every day?
?At the moment Gold remains a quasi-bell-weather instrument against both news and the greenback with dealers rushing to buy on anything ?bad? and looking to offload whenever anything ?good? occurs.
?If the events in the States continue we can expect serious pressure to the upside but, conversely, if the dollar bounces from its recent weakness the opposite is likely to occur?
But which is it?
So do the spread bettors know more than the rest of us? According to a paddypowertrader spokesman ?Gold trades on paddypowertrader are up a 266% in the last month alone. It seems our clients think the only way is up for the precious metal as, 83% of them are going long on gold.?
Time to follow the crowd? Or is it best to sit this one out?
Note that spread betting carries a high level of risk and may not be suitable for all classes of investor. Only trade with money that you can afford to lose. Make sure you fully understand the risks involved. If necessary, seek independent financial advice.
Both Noah St John & Robert Thomas are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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