cyprus---the latest, page-24

While I agree that gold is a great money store, its also a hard to maintain money store..

To hold bullion you need:

-Somewhere safe to put it on your own property

OR

-an institution you trust to safely store it and then GIVE IT BACK when you want to sell it.. and currently banks aren't trusted..

Now stockholders, are they taking a cut? Nope. Stocks is where this new money will be pushed in to..

Lets see what investment options are around:

Bonds - too risky - Greece
Bank deposits - Low interest and now risky - Cyprus
Gold - SAFE but hard to store and people are wary as its trending down... not to mention crime in the eurozone is up..
Stocks - massive rally in progress, dividend yields...
Foreign currency - good interest rates in Australia
Foreign Stocks - Rallies also with high Dividend yield and safety within healthcare/telcos..


Mmm yeah I can see where money will be pushed..

I'm going to bet stocks will eventually surge on this news.. for the moment people will panic, then the end of the world syndrome will be over and stocks will rally more.. not because they are good value (low PE) but because no where else to turn to.